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.
As an expert in real estate matters with a proven track record, let me provide you with a comprehensive breakdown of the concepts covered in the article about real estate commissions featuring the Edie Israel Team.
Real Estate Commission in California:
The article begins by addressing the common question of how much Southern California Realtors® charge for their services. The writer highlights that commission rates vary across the United States based on local customs and market conditions. In California, the average commission is specified as 6 percent of the total sale price of the property. The author notes that while most full-service agents calculate the cost as a percentage of the home sale price, some may offer a flat fee. The Southern California real estate market is characterized as strong, with homes often selling for several hundred thousand dollars.
Responsibility for Paying Realtor® Commission:
The article then addresses a key question that often arises—whether home buyers or home sellers are responsible for paying the Realtor® commission. It emphasizes that home buyers are not responsible for paying any real estate commission. Instead, it is typically the home sellers who bear the responsibility for paying the Realtor® commission for both their agent and the buyer's agent. The commission is paid from the home sale proceeds, and it is not added on top, ensuring that the seller does not have to price their property above market value.
Calculating Realtor® Commission:
The article provides a practical example by mentioning the median home sale price in Orange County, which is $650,000. At the average commission rate of 6 percent, this results in a Realtor® commission of $39,000.
Compensation for Buyer's Real Estate Agent:
The article then delves into how buyer's real estate agents are compensated. It explains that the services of buyer's agents are essentially free to home buyers, as their commission is included in the total commission for the property. When Realtors® enter into a listing agreement with a home seller, they stipulate the total commission to be charged and the potential commission split if the buyer is represented by a licensed agent. Typically, the commission is split equally between the buyer's and seller's agents.
The Importance of Professional Representation:
The article emphasizes the financial and legal importance of buyers having professional Realtor® representation. It notes that if a buyer purchases a home without representation, the full commission is paid to the seller's agent, unless otherwise stipulated.
Edie Israel Team's Services:
Finally, the article concludes by promoting the Edie Israel Team as a trusted source for comprehensive real estate services in Yorba Linda and surrounding communities. The team is portrayed as assisting clients in the successful purchase and sale of residential and commercial property, including vacant land and investment properties. Interested parties are encouraged to contact the Edie Israel Team for further information and to address any questions, including those related to real estate commissions.
