How much is the commission?

In residential purchase/sale transactions, the standard is 6% of the sale value of the property, which is divided into 3% for each of the agents involved in the transaction (the buyer’s representative and the seller’s representative).

In residential rental transactions, the standard is 10% of the value of the annual contract or one month’s rent. This commission is divided equally for each of the agents participating in the transaction.
Who pays the commission?

The owner of the property is always responsible for paying the commission, both in the case of sale and rental.

Do you know how the real estate consultant is paid?

Real estate consultants are not paid by the hour or by completion of work done, they only charge if the protocolization (closing) is achieved. An agent can spend days or months working with a buyer or seller and if the transaction does not go through they are not rewarded for their time.

Where is the amount of the commission stipulated?

It is stipulated in the agreement to promote the property (listing agreement). Said agreement stipulates the percentage of commission that the agent will receive at the time of closing the transaction and the percentage that will be paid to the agent representing the buyer/tenant. This percentage is published in the Multiple Listing System (MLS) along with other property details, so agents are aware of how much their fees will be at closing time.

The support and advice of a real estate professional represents every dollar of the commission. No matter if you are buying or selling real estate, make sure you are working with a real estate agent who has the knowledge, experience, and equipment to give you the advice you need.

DOES THE BUYER PAY A COMMISSION?

The home buyer in the vast majority of cases does not pay any type of commission to the real estate agent.

AS A SELLER, CAN I SAVE THE COMMISSION?

89% of all sellers use the advice and support of a real estate agent. Only 8% of all sellers try to sell the property on their own (known as For Sale By Owner) with the sole purpose of saving six percent (6%) of the commission.

However, it is important to take into account:

  • According to national statistics, the price achieved by the “For Sale By Owner” is 19% less than what a real estate consultant can achieve. If 6% of the commission is subtracted from that 19%, the owner would achieve at least 13% more if they had the professional services of a real estate agent.
  • Cost of print advertising (flyers, brochures, “open-houses”),
  • Sales price estimation and market monitoring
  • Selection of potential buyers
  • Coordination of visits
  • Legal implications as a seller
  • Safety and time that prevents you from eventual stressful and risky situations for you and your family group.

Taking into consideration that the decision to carry out a real estate transaction is one of the most important in a person’s life, that is why we recommend that you make sure to hire a professional, a real estate agent who has a team capable of providing you with the legal, financial, succession and tax advice you need.