Homebuyer’s education:
Who pays the real estate commissions when buying a home? By Janet Petrozelle
WHO PAYS REAL ESTATE FEES Real estate fees are a commission both buyer and seller’s agent get when a home is sold. It varies from 4% to 6% of the total home price and is split into two. Technically it is the seller’s responsibility to pay both the agents, but buyers end up paying since it is included in the home price without the buyer’s knowledge. However, there are instances where buyers decide to pay to make their offer appear more appealing to the seller. Most times, during the closing, only the buyer makes payments, and if the seller does not sign the agreement to pay real estate fees, the home price is lowered, which is not the wish of any seller. The seller thus makes a payment, creating an illusion that they paid and then included in the home sale price.
WHY IS THE REAL ESTATE COMMISSION IMPORTANT Buyer real estate agents spend most of their time driving potential buyers around during house hunting. It is by going through several properties that the team can identify the most suitable home and bid offers. It is worth noting that buyer’s agent spends most of their time driving around open homes and making offers. A commission fee is thus crucial since it helps agents recover paperwork, fuel charges, and other extra costs incurred during the process. As for the seller’s real estate fees, part of the money is used to pay for advertisements on the home. The seller agent also spends a lot of time reviewing multiple offers and selecting the best, necessitating some commission. Overall real estate charges cater for resources used and activities involved in the home transaction. AUGUST 2022 | 99
