Edie Israel
After years of executive sales and marketing experience as well as entrepreneurial success, Edie entered into the real estate market of Southern Calif...
After years of executive sales and marketing experience as well as entrepreneurial success, Edie entered into the real estate market of Southern Calif...
The subject ofreal estate commissionraises many questions for both home buyers and home sellers. In fact,itis one of the most common questions the Edie Israel Teamhears.
How much do Southern California Realtors®charge for their services? And who is responsible for paying thesefees?
How MuchIs Real Estate Commission in California?
Commissionrates vary in different locations in the United States, primarily based on local custom and market conditions.For California Realtors®, the average is6percent of the total sale price of the property. Most full-service agents calculate the cost as a percentage of the home sale price, although others offer a flat fee.
The Southern Californiamarket remains strong. Consequently, homesoften sell for several hundred thousand dollars.ThemedianOrange Countryhome sale priceis$650,000.
At that cost, a6percent Realtor® commissiontotals$39,000.
Do Home Sellers or Home Buyers Pay Realtor® Commission?
Some home buyers avoid working withRealtors® oragents,believingitwillsavethemmoney.Thisisn’t necessary,however,because thebuyeris not responsible for paying any real estate commission. Homesellersaretypicallyresponsible forpaying theRealtor® commissionfor both their and the buyer’s agents.
Also,commissionis paid fromthe home saleproceeds; it isn’taddedon top.This helps ensure that the seller doesn’t have to price their property abovemarket value.
Commissions arepaid from the seller’s proceeds at closing, and traditionally disbursed by the escrow or title companyto each agent’s brokerage.
How Does a Buyer’s Real Estate Agent Get Paid?
So if home buyers don’t have to pay Realtor® commission, howaretheir agentscompensated for providing professional representation?Agent services are free to home buyersbecause theircommission is included inthe total commission for the property.
WhenRealtors®enter into a listing agreement with ahomeseller, theystipulate thetotal commission to be charged as well as the potential commission split if the buyer is represented byalicensed agent.
Typically, the commission is split equally between the buyer’s and seller’sagents. If the buyer purchases the home without representation, the full commission is paid to the seller’s agent,unless they have stipulated otherwise with the seller.
Consequently, it makes no sense—financially or legally—for buyers to enter into a real estate transaction without the protection of professional Realtor® representation.
In Yorba Linda and the surrounding communities, look to the Edie Israel Teamto provide the most comprehensive real estate services available today. We assist our clients in thesuccessful purchase and saleof residential and commercialproperty, including vacant land and investment properties.
Contact us todayto schedule an appointment. We look forward to answering all your questions, including those regarding real estate commission.
