Seller or Buyer: Who Pays Realtor Fees?

In the world of real estate, there are many fees involved, some that get paid by the seller, some by the buyer. Before you embark on your own real estate adventure, you are best served by knowing which fees you are likely to run into and which of the parties is responsible for making sure they are paid. Here, find out who is normally responsible for paying the realtor fees.

Who is responsible for paying the realtor fees?

If you are planning on placing your home up for sale, the normal process involves you signing a listing agreement with your realtor. This listing agreement states, in no uncertain terms, the actual amount of commission you agree to pay the realtor for assisting you in the sale of your home. This fee usually falls between 3%-6% of the total final selling price of your home, and pays outat closing by the escrow company. You may also opt to pay your realtor a flat fee instead, which means that a definite amount is paid to the realtor, regardless of the final selling price of the property. For the most part, the realtor fees are paid by the seller, and the agreement is made before a buyer is in contract. The buyer rarely, if ever, has to get involved in the paying of the realtor, and in most states, it is illegal for the buyer to pay the realtor.

Understanding and grasping all of the fees involved in a real estate is a daunting task. Educating yourself on which party is responsible for paying which fees eliminates getting caught short or unawares, and ensures a clean closing for everyone.