When you think about selling your house, I have a pretty good feeling about
what your top concerns are so I’ll give it a shot and if I miss one, let me
know below!

Number 1: How much you can sell your house for.

Number 2: How you can get it sold in the least amount of time and with the
least amount of stress.

Number 3: How much it’s going to cost to sell it (how much you’re going to
pay a Realtor).

Did I get it right? The reason I know a thing or 2 about this topic is because
I’ve helped so many homeowners walk through the entire selling process.
I’ve heard their concerns. I’ve seen where the hurdles are. I understand
what the goals are and how to reach help sellers reach them!

As your Real Estate Agent, I can help you with all 3 but today I want to
explain to you how the commission works when it comes to number 3,
because many people tend to focus here first. And that’s okay – but before
you focus on that number ALONE, you should know exactly how it works! Let me break it down!

First, I’m going to tell you how the commission does not work!

• When you ask a Real Estate Agent what percentage they charge to list
your home, the number they give you isn’t their personal commission.

• So whether they tell you they charge 7%, 6% or 5% – and you’re doing
the math quickly in your head to see how big of a paycheck they’re going
to be getting when your house sells – stop right there!

• The commission that is charged is actually split FOUR ways! So when an
agent says they charge 6% to list your home, they are not personally
collecting the 6% in their own bank account. So now let’s break down
where it’s going.

LET’S CALL IT A 6 PACK (In this example we’re going to use 6% as the commission percentage and let’s think of it as a 6 pack of beer).

• For starters, the first 2 and a half beers (around 2.4%) are going to be
set aside for the buyer’s agent and their broker.

• The reason is because when we list your home for sale, we also offer a
cooperating commission percentage to the agent (and their broker) who
represent the person who ends up buying your home. That agent and
broker then split up those “beers” based on the commission structure
they have in place.

THE REMAINING 3.6% (or 3 and a half beers):

• The remaining commission percentage is typically split in half between
the agent listing your house and the broker they’re employed by.

THAT LEAVES THE LISTING AGENT WITH 1.8%:

• Before the agent takes home this full percentage, first they have to pay
their taxes, their real estate fees, MLS fees, and signage installation fees
(along with the cost of the signs, lock boxes, listing brochures they have
printed, etc).

From there you about 1.4% (or beers) left… but not so fast!

• What about the expenses for marketing your home? If you want
those first 2 concerns to be taken care of (getting the most money
from your home sale and getting it done in the shortest amount of
time and least amount of stress) that agent is going to have to spend
money marketing your home.

• That might include things like professional photography of your
home (because your first showing is happening online!) That is
where the majority of buyers will see your home for the first time.
You don’t want to lose them there because of poor quality photos.

• Then you have social media advertising. Sticking money into
promoting open houses and targeting your local area with your
listing in general to attract the right buyers. Then you have the actual
marketing of the open house, video marketing, and whatever else
your agent includes in their marketing package.

• So at 6% commission, at the end of the day, the agent working hard
to get your home sold is realistically left with about half of a beer to
pay their own bills, fill their car up with gas, continue marketing their
own business and live!

• Before you ask an agent to cut their commission or focus on that as
your number 1 concern, think about what that could cost you.

There you have it! How commission works with a 6 pack of
beer! Talking money can be awkward but only if you make it
awkward and when you relate it to beer, how can it be
awkward!

If you want to chat more about what my Listing Method looks like and get all of the details on what you can expect as my client, let’s meet for coffee. I
don’t even bring contracts to the meeting. It’s just a time for us to
chat about your goals and how I can help you reach them without
going through a stressful process!

You’ll also want to tune in next week when I share 3 things you
probably didn’t know about Real Estate Agents but should.

**I’m just getting into all the juicy topics this month! Have a great day!