How Commissions Work & How You Save Big!

Commissions on the sale of a home typically represent over 90% of all closing costs when selling.  In order to benefit from maximum commission savings in selling your home, it is very important to understand how commissions work.
 Let’s start with the basics.  In almost all cases there is the Listing Agent (for the seller) and the agent representing the Buyer (buyer’s agent).   Traditional real estate companies split the (5% to 6%) commission 50/50.  For this example, we will use 5%.  So Listing Agent receives 2.5% and Buyer’s Agent 2.5%.  

Pathway to Savings

Let’s start with the listing commission, which in the above example, is typically 2.5%.

Listing Agent Commission Savings

Your Advantage Realty will list your home for a 1% listing commission, and you will receive 100% Full Service. You save 60% compared to a traditional 2.5% listing commission . There is more saving options on the buyer’s agent commission to come!

Buyer's Agent Commission Savings

A typical buyer’s agent commission is 2.5%.  You can reduce this in almost all cases to 2.25%. (minimum savings a ¼ of percent on all listings for buyer’s agent’s commission). 
What about more savings on the buyer commission?  That is case by case. As a rule of thumb, the there are two main variables:  

Variable #1:

The higher price properties typically can reduce the buyer’s commission more. The buyer’s agent is already making a lot of money!

Variable #2:

Low inventory neighborhoods have more opportunities to save. This is a simple byproduct of supply and demand.  Fewer homes on the market, more opportunity to reasonably reduce the buyer’s agent commission and less opportunity for  


You are well on your way to saving a lot of money by reading the above summary on commission savings!  The next step is to speak to a listing agent that is your advocate.  We are going to protect your home’s equity by achieving maximum sales price and reducing unnecessary closing costs to achieve highest NET cash proceeds. 
 Let’s have a conversation about your home selling requirements!