How do discount agents handle commission splits?
When you decide to sell your home, two people have compensated: the seller's agent and the buyer's agent. You have control over how much you pay your agent (as the seller), but not over how much the buyer's agent is paid.
When you pay a full-service Realtor a 6% commission, half of that fee is usually passed on to the buyer's agent. This means that both the buyer's and seller's agents receive 3% of the home's sale price.
When you hire a discount realtor, you may only pay four or five percent of the total commission on the sale of your home. In this case, the three percent is usually passed on to the buyer's agent. Instead of both parties receiving a 2% or 2.5% commission, your agent receives one or two percent and the seller's agent receives three percent.
The less commission you pay, the less work your discount agent can do. They must still make a profit for their time spent marketing and selling your home.
