Walter Seuell Realty LLC
Walter Seuell
Walter Seuell Realty

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It’s important for consumers looking to experience the American dream of homeownership to understand how real estate agents are paid for the services they provide. At the outset, the seller and that person’s listing broker agree on the amount the listing broker will receive for the services it provides to the seller.
The listing broker and seller also discuss and agree upon an amount that the listing broker will pay a broker who successfully closes the transaction with a ready, willing and able buyer. Here are seven additional things you need to know. For further information check out

1. Commissions are always negotiable.
Commissions can be negotiated at any point throughout the transaction, including at the outset, after the results
of a home inspection and after an offer has been made. Sellers negotiate with their broker what fee
they are willing to pay for their broker’s services and what fee they are willing to pay a cooperating buyer
broker for finding someone who wants to buy their home.

2. There are different commission models to choose from. Buyers have many different choices about which broker they want to work with in terms of everything from the commission model to a real estate agent’s particular expertise to the agents’ customer service approach. In the full-service approach, commissions are negotiable at any point during the home buying process. The reduced service/discounted fee model allows for flexible offerings and pricing. The flat fee approach allows buyers to negotiate a set price per service.

3. Commission rates are set by the market. The free market organically establishes commission costs within local real estate markets based on service,
consumer preference and what the market can bear, among other things. National Association of REALTORS’® guidelines ensure that the listing broker advise all other participants in their local broker marketplace what the amount of compensation to the buyer’s broker will be for closing the sale. That amount is determined by the seller and the seller’s broker. Commissions fluctuate over time, including having decreased
steadily in recent years and having fallen to a new low of 4.94% in 2020. of costs associated with buying

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