Who Really Pays the Commission?

11 December 2018

When you go to sell your property, who really pays the commission?

Most owners think they pay the commission. That's why the first thing they do when they meet an agent to list their property, is to negotiate the commission as low as possible.

The reality is the seller never pays the commission. The only person bringing money to the closing is the buyer. The buyer decides how much they are going to pay for the property and then how much the seller gets to keep. As a seller, don't you want to hire an agent who will bring the most money for you? Of Course! That is how you get the most money for your property. Just think about it, if your property does not sell, you pay nothing for the services provided by your agent.

So, how can any seller think that they are really paying the commission and the services of an agent. It's easy to confuse the paperwork with the reality of the sale transaction.

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