Selling your Florida Home - Commissions

Step 5. Real Estate Commissions

The commission amount a seller pays is normally a percentage portion of the sales price. The percentage rate generally depends on the level of service you want and expect from your real estate agent. Just like everything else in real estate, commissions are negotiable.

Cut Rate Listings

A cut rate listings agent offers the very basic of service levels such as listing in the MLS. It may or may not include a yard sign and/or listings in other advertising mediums. Typical rates range from 3% to 5%.

Full Service Agent

A full service agent actively markets your property not only to other real estate agents, but to prospective buyers via MLS listing, website listings and traditional media advertising. They may market your home via open houses, being at your home when other agents bring potential buyers over to view your home, and upgraded selling features such as virtual tours. A dedicated agent will work with you to stage your home so it is shown in the best possible light. A full service agent will spend their own time and money on these costs. Typical rates range from 6% to 7%.

Which is for Me?

While at first glance it may appear that your real estate agent is taking a big chunk of your sales price, this is actually not the case. The commission you pay is actually split between your real estate agent and the buyer's real estate agent. So for a 6% real estate commission, each agent is receiving 3% of which a portion may be going to their broker.

The upside to cut rate listings is of course a smaller commission you have to pay. The disadvantage to cut rate listings is that if the portion of the commission that is paid to the buyer's agent is not high enough, many real estate agents may not even bother to show the property as it is just not financially worth it to them. The result is your home may be on the market longer and receive less qualified viewings and offers.

The upside to a full service agent is that you will have someone who has spent their own money to market your home and is invested in the sale of your home. They have the tools to actively engage with other realtors and potential buyers and has specific knowledge of your local market.

Next: Step 6 - Marketing Your Home in Today's Environment:

1. Getting Your Home Ready to Sell
2. Staging Your Home - Interior Tips
3. Curb Appeal - Exterior Tips
4. Pricing Your Home - Setting Your Listing Price
5. Real Estate Commissions
6. Marketing Your Home in Today's Environment