Rates are flat today. I told you it was going to be a volatile market yesterday and it was crazy indeed! Bonds have started the day in the negative territory. Today’s comparison mortgage rates with no lender fees are 4.5% on a 30 year, 3.625% on a 15 year and 3% on a 5/1 ARM. (click here for details).
Wow! What a great response from yesterday’s important Mortgage Loan Officer Compensation 101 episode! Thanks for the great comments and emails!
Let me be clear. Not all of it was nice, but I am ok with that. Some Dinosaurs have anger issues. I love your feedback, so please make sure to post your comment below.
Just to prove that I’m a fair guy, today we’re going to focus on real estate agent compensation and shed some light on how they get paid. Let me tell you, it’s quite different.
Check it out in today’s episode:
To be fair today, let’s talk about how Realtors get paid. The commission for an agentr can vary quite a bit, but I’m going to simplify it down.
Real Estate Agent Compensation 101
Not all Realtors are created equal, and not all are the same cost. There are different levels of service each agent will be able to provide you and based on those services and expertise they will set an appropriate commission to goes along with it. You can go from simply just putting your house on the Multiple Listing Service (MLS) for $495 or you can get a full blown listing contract for all the marketing bells and whistles for 6% commission of the sales price. Each company or Realtor has a different set of skills or marketing strategies, so that is what you are paying for!
Shopping for a realtor is all about what you as the seller want them to do for you. Unlike the mortgage world, it is not commoditized. In most cases, you actually get what you pay for.
Who pays the commission?
The seller negotiates and pays the commission on the sale of their home. The buyer does not usually pay any commission unless they are paying a finder’s fee to their buyer’s agent. Also, if the buyer is using a different Realtor than the listing agent, the two agents will then work out a split of whatever the commission happens to be on that specific house. That’s how the buyer’s agent makes a living.
If the Realtor is the listing agent and the selling agent (i.e. on both sides of the transaction), they get the full commission.
Depending on your marketing wants and needs, it will determine what services your agent will need to provide. This then determines their commission. Its really up to you!
Congrats, you just passed Real Estate Agent Compensation 101 with Professor Cox.
Now go out there and get the best deal!
Hey, if you get a chance, I would love it if you could help me in my mission to bring transparency to mortgage lending by sharing today’s episode on Facebook or Twitter. Let’s change the way people shop for a mortgage…forever!
See you tomorrow!
PS. To ask a question, get advice, or find out what your lender is making off your loan, just post a comment below. Daily comparison rates, calculators, and other cool features are available in the free Rates in Motion LoanApp by going to your smart phone and clicking on this link, activation code is 9203780002