
“How To Get Rich From Home With Your Own Business!”
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To answer the question, first we must understand how property agent is being paid. They are basically being remunerated by commission. Sellers of the private property pay 2% (industry norm) of the selling price to their appointed agent.
If there is only 1 agent involved in the transaction, then the agent will get the whole 2% commission on the sale of the property. However, if the property was co-broke, then the 2% will be split between the 2 agents.
Out of the 2% commission, agents get to keep average 80% while the remaining 20% will be paid to the agency they represented.
The following are 3 scenarios to ponder and illustrate whether Seller’s Agent have the sellers interest above all.
|
Scenario |
No. of Agent |
Selling Price 1 |
Net Commission (after deducting 20% agency fee) |
Selling Price 2 (Required to hold for additional 1 more month) |
Net Commission (after deducting 20% agency fee) |
Remarks |
|
One |
1 |
$800,000 |
$12,800 |
$840,000 |
$13,440 |
Selling at $40,000 would give the seller extra $39,200 but the seller’s agent would get only $640 extra. |
|
Two |
2 |
$800,000 |
$6,400 |
$840,000 |
$6,720 |
2 agents co-broke to sell the property. The commission will be spilt between these 2 agents. |
|
Three |
1 or (2) |
$780,000 |
$12,480 |
$840,000 |
$6,720 |
A Direct buyer offering $780,000 to seller agent while the following month another buyer represented by an agent offering $840,000. |
For Selling Price 2, it required the Seller Agent to hold the Seller property for additional 1 more month. Additional cost incur are advertising fee, office rental etc.
Imagine if you’re an agent for each of the 3 scenario, which selling price will you transact for the Seller?
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