Facts for Home Sellers: How is a Seller’s Broker Compensated?
- When sellers list their property for sale, they agree to pay the seller’s broker when escrow closes. The amount they pay is fully negotiable. When negotiating compensation, the parties may discuss factors such as the broker’s expertise and experience, the type of broker services to be performed, and the broker’s time and expenses, among other considerations.
- If the property’s buyer is unrepresented, the seller may agree to additional compensation for the seller’s broker since this circumstance may require additional responsibilities or workload for the seller’s broker.
- In some cases, a broker may represent both the buyer and seller in a transaction, which is called a “dual agency.” Because many individual agents may work through one brokerage company and some individual agents work with many buyers and sellers, there is a possibility that the same brokerage company and/or agent will represent both the buyer and seller in a transaction.
- In a “dual agency,” the broker is allowed to receive compensation from the buyer and seller – through their respective agreements, provided both are advised of the relationship and the total amount of compensation the broker will receive.
Source: California Association of Realtors
Ready to sell? Know your home’s worth, click here.
Homes for sale in Carmel Valley click here.
Shirin Rezania Ramos | 858.345.0685 | www.shirinramos.com | Compass, DRE 0203379
