How does the Agent Compensation work?
When a Seller signs a listing agreement with the listing agent, the Seller and agent agree to the total amount that the Seller will pay for all commissions. Typically the amount that a Seller will pay to the listing agent is 5% to 6% of the price that the home sells for. Typically, half of the commission is paid to the agent that represents the Buyer and half of the commission is paid to the agent that represents the Seller. In the event that the listing agent represents both the Buyer and the Seller, then the listing agent is compensated with the entire 5% to 6% commission.
Please understand that the Buyer does not pay for any real estate commissions whatsoever unless there is another written agreement between the Buyer and Buyer's agent that specifies that the Buyer agrees to pay the Buyer's agent a commission. In our situation, Fitzburgh Realty gets paid by the listing agent, the amount that is listed in the MLS as the CSO (CSO = Commission to Selling Office). This percentage is the compensation that Fitzburgh Realty is entitled to receive but remember, the Buyer does not pay this amount whatsoever. The Seller pays the listing agent the entire commission that was agreed upon in the listing agreement and then Fitzburgh Realty is paid the CSO by the listing agent.
When a Seller signs a listing agreement with the listing agent, the Seller and agent agree to the total amount that the Seller will pay for all commissions. Typically the amount that a Seller will pay to the listing agent is 5% to 6% of the price that the home sells for. Typically, half of the commission is paid to the agent that represents the Buyer and half of the commission is paid to the agent that represents the Seller. In the event that the listing agent represents both the Buyer and the Seller, then the listing agent is compensated with the entire 5% to 6% commission.
Please understand that the Buyer does not pay for any real estate commissions whatsoever unless there is another written agreement between the Buyer and Buyer's agent that specifies that the Buyer agrees to pay the Buyer's agent a commission. In our situation, Fitzburgh Realty gets paid by the listing agent, the amount that is listed in the MLS as the CSO (CSO = Commission to Selling Office). This percentage is the compensation that Fitzburgh Realty is entitled to receive but remember, the Buyer does not pay this amount whatsoever. The Seller pays the listing agent the entire commission that was agreed upon in the listing agreement and then Fitzburgh Realty is paid the CSO by the listing agent.
