Curious about Boston real estate for sale broker fees?
Boston Condos for sale
Curious about Boston real estate for sale broker fees?
Boston real estate broker fees, typically commissions on the sale price, are a subject of ongoing discussion and negotiation. More so know, then in the past.
While the traditional 4-5% commission is still common, recent court rulings have encouraged more flexible fee structures.
Boston condo buyers and sellers are increasingly negotiating these fees, and alternative fee structures, such as flat fees or discount brokerage options, are becoming more prevalent.
Boston Condos for Sale and the Bottom Line
If you’re in the process of buying a Boston condo or Selling. Please call me att 617-595-3712. Ask about our reduced fees for sellers and rebates for buyers.
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Curious about Boston real estate for sale broker fees?
I was contacted by prospective buyers and sellers in the past that eventually asked how payment and commissions work. So I thought I’d give you the bottom line as to how downtown Boston real estate brokers/agents get paid.
Downtown Boston condo sellers who list their property for sale
Boston condo owners who list their properties are typically responsible for paying the commission to the brokers (e.g., the companies affiliated with each agent) who represent the seller and the buyer. The listing agent negotiates a commission up front, and this is included in the seller paperwork. Total commissions for both brokers usually four to five percent, and are typically divided equally. For example, a five percent commission on a $1,000,000 condo would find the seller paying $50,000 in commissions, with the brokers each receiving $25,000.
Boston Real Estate Brokers Pay the Agents
The Boston real estate broker (aka owner of the company) then pays the real estate agent according to whatever split is agreed to by both parties. Splits usually range from 50% to around 70%, and are based upon the skill of the agent. The more money the agent earns, the more favorable the split.
Boston Condo Sellers are not Responsible to Pay the Agent –
Home buyers aren’t directly responsible for paying real estate agents a fee. They obtain their fee from the broker they work for. An agent who represents a buyer doesn’t get paid until the buyer actually purchases the downtown condo.
It’s worth mentioning that real estate agents are never guaranteed a paycheck. There are times when sellers decide to withdraw a property from the market after their agent has been marketing the home for several weeks or months, and there are buyers who can house hunt and write offers for months or even years before they actually buy.
Boston Real Estate and the Bottom Line
In the meantime, Boston real estate brokers and agents are responsible for covering their own cost of living (including medical insurance), as well as hundreds of dollars in association and transaction fees, marketing costs, and annual broker service fees/insurance. And oh, yeah—real estate guys have to pay taxes on our income (its a lot more than $700.00).
