When it comes time to sell your home, the question of home much commission is charged always comes up. Also, there are a lot of opinions about real estate commissions. Here’s the truth about real estate commissions:
There are no “one-size fits all” approach.
There are many different types of real estate agents and brokerages. Because there are so many, you have options regarding services and strategies.
However, we want to note that Be New Orleans only provides full service to their clients. We will not take a fee just to list your home in the MLS.
Where does the money go?
As we discuss real estate commissions, we want you to know this ONLY pertains to Be New Orleans. We cannot comment on how other agents handle their business and what they are doing for their commissions.
For example, if you list your $500,000 home with us at a 6% commission:
- Commission Total: $30,000
- The commission given to buyer’s agent: $15,000
- Fees to Brokerage: $4500 (every agent has to pay their brokerage a fee and/or percentage off each sale. Most pay 30%)
- Taxes: $3150
- Professional photography, house cleaning, videos, advertising, etc: $2000
- Operating Costs: $1000 (this includes gas, parking, licensing fees, technology, lockboxes, training, software, etc.)
- Income after costs: $4350 (this is assuming we don’t have to cover any extra miscellaneous costs that do come up)
As your real estate agents, we also take on risks. If your house doesn’t sell, we don’t get paid! But, we did just drop a couple of grand advertising your home and making it picture perfect in the meantime. We understand those risks and work diligently to get the best result from your home sale! Selling your home is expensive, and we want you to know where the money goes.
Ready to talk about selling your home? Contact us!