Are you getting ready to sell or buy a home in the Boulder Area and have thought about hiring a Realtor? You might wonder how you pay them and what you are paying them for. Having an experienced Realtor assist you during either the buy or sell process will make everything go as smoothly as possible for you and your family. Some clients have tried to sell their home FBSO (For Sale By Owner) then quickly realized how much goes into preparing the home, staging the home, open houses, as well as all the contractual issues involved. If you want to know more about FSBO and why I don’t recommend them, you can read my blog post on that here. Let me help you understand How Real Estate Commission Works In Boulder.
How Much Is Real Estate Commission
Realtors don’t get paid hourly or even weekly; they typically get paid only at the successful closing of their clients’ sale or purchase of a home. While there are some real estate agents who will charge a flat fee for their services, this isn’t typical. Normally, they will charge a percentage of the sale price of the home to be paid on a successful closing. The exact percentage that the real estate agent working with you charges is going to vary from Realtor to Realtor.
Let’s look first at selling your home. When you sell your home it is safe to say that usually, a 5 to 7 percent sales commission. Is what the listing agent is going to charge. Remember the idiom, you get what you pay for? I know this might seem like a huge chunk, but let’s break it down. First, the brokerage firm listing the home for sale typically agrees to contribute a portion of this percentage to the outside brokerage firms’ commission (the firm that represents the buyer).
This amount of compensation is then advertised in the MLS and in the Denver Metro area, it is typically 2.8%. The remainder of that commission is then split between the brokerage firm and the listing agent. Furthermore, most listing agents will pay for all the marketing and advertising of your home. These services will vary from Realtor to Realtor. So when you think about it, the Realtor listing your house is paid only a portion of the agreed-upon commission.
How Real Estate Commission Works In Boulder
Now for the buy-side. Although the buyer typically is responsible to pay their agent upon a successful closing. This commission is usually paid at closing from the proceeds the seller receives at closing. So, the buyer pays for the home but typically doesn’t have the additional cost of paying a commission to his/her agent in the state of Colorado.
On either side of the transaction, a good Realtor will make a huge difference in your real estate experience. And you will see that they deserve to be paid this amount! Also, keep in mind that they are doing all this work for you and without compensation until a buyer finds a home they love, or the seller accepts the offer. This can add up to weeks or sometimes even months of work.
What Does Commission Cost Cover?
You can decide to try to buy or sell a home without the expertise of a Realtor. But keep in mind real estate agents offer a wide range of services to their clients. When working with a seller, services include helping you price your home. By marketing, negotiating with home buyers, and being by your side through closing and so much more. As an expert in the Boulder area, I know the market and the homes listed in this market and how to best serve my clients.
When working with a buyer, an experienced Realtor can help with negotiations, navigating appraisals and inspections, and even assist you in the process of purchasing a new home from a builder! Real estate transactions are often more complicated than people realize, and a knowledgeable real estate agent will make it so that you don’t have to worry about these things.
How Can I Help?
If you are needing my expertise in the Boulder area or need more information on How Real Estate Commission Works In Boulder please feel free to reach out. If you are looking to sell your home and would like a Realtor to represent you, don’t hesitate to contact me. Or if you want more information on the process of buying a home and what I can do for you, please reach out. I will continue to provide my clients with interesting and up-to-date information so they can make informed decisions. If you are planning on buying or selling a home in the near future and you think that my expertise and positive attitude might be of service to you don’t hesitate to reach out and contact me!
Or would you like more information on the Boulder area or the real estate market specifically? If so click here to download my current market report on the area or visit this link – http://elisabethnelsonrealestate.com/market-report-newsletter/
Luxury Home Specialist & New Home Specialist
Coldwell Banker Residential Brokerage
(303) 916 5859