Real estate agent fees are the commissions earned by agents for their representation for the sale or purchase of a home. While rates can vary, there are some things central Ohio sellers and buyers should know.
Market Rate
Real estate agent fees vary from one market to another. According to active estate agents in the central Ohio area, as of January 2010, the average rate was 6 percent of the sales price.
Who Pays?
When sellers enter into a contract and place their home on the market, they are agreeing to compensate the agent 6 percent of the sales price if their agent brings the buyer. If another agent brings the buyer, the 6 percent is split between both agents, each receiving 3 percent. Commissions for one or both real estate agents are automatically deducted from the seller's settlement at closing.
Negotiating the Rate
Since commission rates are based on market values, sellers can negotiate rates with agents. It is important to note that the market commission rate can always change based on need and demand. Some agents will charge more than market value, while others will charge less. Before negotiating rates with an agent for her fee, review the agent’s sales records. Typically, agents with stronger sales success will charge market rate or above; higher rates can sometimes be worth it due to professionalism and expertise in real estate transactions.
