Realtor fees... are they up front?

Question

Are realtor fees collected up front and out of pocket when you sell your house? Basically, how do you end up paying the realtor the decided percentage of the final price? Do they bill you? I'm not clear on how that works.

Answer 1

NOPE,

they are a commission, payable generally upon closing the sale and paid out of funds at closing

when you sign a listing agreement to sell your house  it spells it all out-don't sign it without carefully reading it and lining out anything you don't agree with

it's a fixed % of sale price, anywhere fro 3-7%, and it's been declining around here to 5% due to lousy market

Answer 2

if the property is MLS - 5%.  if the realtor who listed your property sells it then its 4%.  and it comes off the top of the selling price. dont let anyone tell you 6 or 7 percent 4 -5 is the rate.

Answer 3

When you sign the listing contract the amount to be paid should be clearly spelled out.  It is usually a percentage of the sales price (usually 6%).  

The payment goes to the realtors involved at closing (closing attorney disburses funds and pays the realtors).  They don't sell it, they don't get paid.  That's their motivation for getting you to the closing table.

good luck!

Answer 4

If you have paid say $10000 off your mortgage, and you sell the house for $20000 more than you paid for it, the realtor fees will come out of that money.