Real Estate Agent Commission
When you’re just getting started in real estate there are a lot of technical terms you come across. Sadly, it is hard to find any decent information that actually educates people on the basic terms. Luckily, we’re here for you! The question on what constitutes real estate commission is asked very often.
What is commission
Commission is the remuneration for an agent for a successful result. It is therefore imperative for an agent to have successful results. This is how they earn the commission.
How much is the real estate agent commission?
Commission varies from institution-to-institution and agent-to-agent. The average commission rate for an agent in Zambia varies up to 10% of the property price. When it comes to rental properties agents usually earn up to a single month’s rent as their commission. A listing agreement should highlight the details of the commission. The listing agreement should state the terms of the commission and it should describe the services the agent will provide. In some cases some agents will be flexible to negotiate the commission so as to gain your business.
Who pays the commission?
The seller usually pays the agent’s commission at closing. In most instances the seller’s factor the commission into the property price. In certain instances it’s possible for the buyer to offer to pay the agent’s commission so that their offer for a property becomes more competitive.
What do you get for the commission?
It is critical to know what you’re getting in exchange for the commission you’re agreeing to pay an agent. Agents invest lots time and resources into completing a sale, but the mix of services offered varies. These include:
- Presentation of your property in the best possible way.
- Selection of the most appropriate tried-and-tested marketing campaign.
- Agent’s presence at open houses and potential buyer appointments.
- Sending out contracts to potential buyers, conduction discussions and negotiations with lawyers, as well as banks and other relevant parties on your behalf.
- Coordinate inspections and engage in many other tasks aimed at helping you sell or buy a home.
A knowledgeable agent in a specific market with ample experience will help you finalize a sale as quickly as possible for the best deal possible. Fully understand how your real estate agent is compensated and what services they will provide.
