washington realtors association

washington realtors association:Discount Home Listing Brokers with reduced commissions typically offer two types of home listings: A flat fee type of listing, which has a fixed flat fee that ranges from about $500 to $2,500, depending on the level of broker service and involvement. The other type is a discount listing based on a reduced commission as a percentage of the sales price, which ranges from about 1% to 1.5% of the final sales price of the home. When compared to a traditional full service sales commission typically paid to a listing agent, the savings can be very substantial. The following is an example of a traditional 6% home listing, which is usually split between the listing agent and the selling agent at the close of escrow. · $400,000 Sales Price · 3% Commission to the Selling Broker = $12,000 · 3% Commission to the Listing Broker = $12,000 Here is an example of the savings from a flat fee listing compared to a traditional listing with a 3% commission paid to the listing agent: · $400,000 Sales Price · 3% Commission to the Selling Broker = $12,000 · Flat Fee to the Listing Broker = $500 to $2,500 · Savings Compared to a Traditional Listing = $11,500 to $9,500 The next example shows the savings from a discount listing based on a percentage of the final sales price: · $400,000 Sales Price · 3% Commission to the Selling Agent = $12,000 · 1% to 1.5% Commission to the Listing Broker = $4,000 to $6,000 · Savings Compared to a Traditional Listing = $6,000 to $8,000 Home Buyer Rebate For homebuyers, many brokers and agents are now offering home buyer rebates of 1% to 2% of the final sales price, which can be paid, or credited to the costs of the homebuyer at the close of escrow. Again, when compared to a traditional full service sales commission paid to a selling agent, the savings to the homebuyer can be high. The following is an example shows the potential savings from a home buyer rebate compared to the traditional 3% selling agents commission: · $400,000 Sales Price · 3% Traditional Commission to the Selling Agent = $12,000 · 1% to 2% Rebate to the Home Buyer = $4,000 to $8,000 In a typical home buying transaction, the selling broker would receive a 3% commission for their service, and would rebate the agreed portion of the commission to the buyer when escrow closes. The rebate can be applied to the buyers down payment or closing costs, or taken as cash, providing there are no lender or state restrictions, or the amount of the buyers rebate can be deducted from the final sales price of the home. Washington Post Real Estate - Stay Connected with latest

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