How Are Real Estate Agents Compensated?
In most transactions in South Florida, two agents are involved: one representing the seller and one representing the buyer. The seller of the property is responsible for paying the commission.
What Is the Standard Commission Percentage?
In South Florida, the standard commission is typically six percent (6%) of the sale price. This amount is usually divided equally between both agents (the seller's agent and the buyer's agent).
Does the Buyer Pay Commission?
In the vast majority of cases, the homebuyer does not pay any commission to the real estate agent.
As a Seller, Can I Save the Commission?
Eighty-nine percent of all sellers use the advice and assistance of a real estate agent. Only eight percent of sellers attempt to sell the property on their own (known as For Sale By Owner), based on the belief that they will save the six percent (6%) commission.
However, it is important to consider:
- According to national statistics, the price achieved by "For Sale By Owner" is 19% lower than what a real estate agent can achieve. This means that the seller would gain 13% (19% less 6% commission) more than if they had sold without the assistance of a professional real estate agent.
- Costs of printed advertising (flyers, brochures, "open houses")
- Estimation of sale price and market monitoring
- Selection of potential buyers
- Coordination of visits
- Legal implications as a seller
- Security and time-saving, preventing stressful and risky situations for you and your family
- Considering that the decision to carry out a real estate transaction is one of the most important in a person's life, we recommend ensuring that you hire not just any realtor, but an advisor with a team capable of providing the legal, financial, estate, and tax advice you need.
Enrique Vicente Urdaneta
Real Estate Advisor | eXp Realty | EVU Luxury Homes
305.209.6418
www.instagram.com/evuluxuryhomes
Disclaimer: The information presented in this article is intended to provide a general understanding of the topic. However, please note that I am a real estate agent, not a lawyer, accountant, tax, or financial advisor. This content should not be taken as legal, tax, accounting, or financial advice. The laws and regulations related to this topic can be complex and may change or expand in the future. Therefore, it is crucial to consult with a qualified professional, such as a specialized financial or tax advisor, before making any decision based on this information. As a real estate agent, I can provide various options and professional guidance related to the real estate aspects of your investment strategy, and for matters related to tax implications, legal issues, and financial planning, please consult with the appropriate professionals, which whom I have allies I can refer.
