In a DIY world, some things should still be left up to the professionals. Selling your real estate in Lake Havasu is definitely one of them. It takes a lot of work to market your property, show it to prospective buyers, negotiate offers, juggle deadlines, schedule inspections, and all the rest of the little things that pop up along the way. Also, a real estate agent brings their experience and contacts to the table that most individual homeowners don’t possess. They know the Havasu real estate market like the back of their hand. When you hire a pro, you need to pay them a real estate commission. How much is the commission usually and who pays?
How Much Do You Pay for a Real Estate Commission?
First, you need to know that a real estate agent won’t get paid until escrow on your real estate in Lake Havasu is closed. No matter how many hours they put into marketing, showing, negotiating, etc., they only collect a real estate commission when the entire transaction is complete. Typically, the commission runs anywhere between 5-6%. On a $250,000 home, that comes out to $12,500-$15,000. This gets paid out of the final proceeds of the sale.
Who Pays the Real Estate Commission?
The seller shoulders the responsibility for paying the real estate commission. After closing, a commission check will be cut and given to the seller’s agent’s office. If the buyer hired a separate agent to represent them, your agent’s firm will disperse the appropriate funds to that agent’s brokerage. In the Havasu real estate market, dual agency is legal. That’s when one agent represents both the buyer and the seller. In that case, the agent collects the entire 5-6% commission for themselves. However, they must disclose this fact to both the buyer and seller in writing. Each party must then give their consent for this to happen. Otherwise, it will not be allowed by Arizona law.
Are Real Estate Commissions Negotiable?
Technically, all real estate commissions in the Havasu real estate market are negotiable. Some agents even offer a flat fee for their services. However, 5-6% still tends to be the norm. But, keep in mind that the real estate agent takes care of all marketing costs up front. If they reduce their commission, it may affect how much they can advertise your real estate in Lake Havasu. So, an agent might still say no to a lower commission. Still, it doesn’t hurt to ask.
Alexis Steel – 928-303-2199
Keller Williams Arizona Living Realty
Search homes at: www.TheHavasuHome.com