What are you paying for when you pay a commission fee in a transaction?
Where do your commission dollars go when you hire a real estate professional to represent you as a seller? Since commission can be handled independently by agents or teams, what you pay varies. You can always ask your agent what your commission fee goes toward and how the price you pay benefits you. In our network, we usually allocate about 17% of your commission payment toward our membership fees to the Northeast Association of Realtors and the Massachusetts Association of Realtors, office fees, staff salaries, transaction coordination, and contract management. Another 17% is invested in internet exposure for our listings on the MLS, Realtor.com, Trulia, Zillow, and approximately two dozen other websites. Roughly 13% is put toward video tours, priority features, video broadcasting, TV/internet/radio ads, social media, and referral sources. 42% of your commission is allocated to go directly to the buyer agent’s company so that they get paid for their work as well. Finally, the agent you’re working with earns the last 13% of your commission. If you have further questions regarding commissions or anything else about the financial aspects of a transaction, feel free to reach out via phone or on our website. We would love to help you.
