Welcome To The Alba Group's Blog
On a weekly basis we bring up to date current information about the real estate market in Medford, Eagle Point, Pheonix and the surrounding areas of Jackson County and Josephine County Oregon.!
Tag Archives: Business and Economy
Who Pays Real Estate Agents? Many people do not realize how real estate agents get paid. If you are a home buyer it is likely that the home owner has negotiated the real estates compensation in the listing agreement. Many home sellers do not realize that real estate commissions are negotiable. Real estate agents get paid out of the sale proceeds. The commission is added to the purchase price of the agreement. The seller has a seller’s agent and the buyers usually have their own agent. There will be an agreement between the two agents brokerages to determine how the commission will be split before you actually see the property. Real estate agents are not able to work independently. Every real estate agent works for a broker. They receive their checks directly from their broker. Brokers decide the commissions they charge for properties marketed and sold through that brokerage. The commission .is always negotiable, the national average ranges between 4 – 8 percent. The commission is split between the broker and the agent based on an agreement that has been negotiated between the broker and the agent. A seller signs a listing agreement for a specific length of time. The agreement states that the broker will receive a certain amount of commission upon the sale of the house. The buyer’s agent or sometimes called a selling agent actually procures the sale by attracting the buyer for the property. Although the commission is split between two sides of the transaction it is not always an equal split. Sometimes it is 50-50 but it could be 60-40 or 70-30. There are no set standards. If the same brokerage represents both the buyer and the seller than the brokerage will receive full commission. Are you confused yet? Here is an example. If a home is sold for $200,000 and the commission is 7% and if the commissions are split 60% for listing broker and 40% for selling broker than the listing broker will receive $8,400 and the selling broker would receive $5,600. Each of those figures would be split between the respective agents as agreed upon prior to the sale of the property. However, the commission is not paid until the home is sold. If you are interested in learning more about sell your home or buying a home I would be available to answer any of your questions. Related articles Real estate agents: The good, bad & ugly of this commission-only career How To Find A Real Estate Agent Who Has Your Best Interests At Heart A Career In Real Estate: Is It For You? (Part One)
Features Buyers Are Willing to Pay Extra For What would you as a home buyer, be willing to pay extra for? Most people would answer new kitchen appliances and the comfort of central heat and air conditioning, according to the 2013 Home Features Survey by the National Association of REALTORS(R). Buyers who purchased a home without new kitchen appliances said they would be willing to pay up to $1,840 extra to home a home with new appliances. Those that purchaeed a home without central heat and airconditioning said they would be willing to pay an average of $2,250 more to have it. This table shows other items buyers are willing to pay more for: Feature Amount Buyers Willing to Pay Extra For Home less than five years old $5,020.00 Waterfront property $5,420.00 Laundry room $1,590.00 Den or study or home office $1,920.00 Basement $3,200.00 In-law suite $2,920.00 Keep in mind that this was a national survey and all real estate local. I would be happy to discuss with you what your local neighbor real estate market would bare in marketing of your home. However, these are things to consider as a home buyer as well as a home seller. When negotiating your home for sale or in the purchase of a home, consider all the terms and conditions of the agreement, including how much value extra features such as new appliances really do offer.