Understanding commission better

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Most people don’t understand how real estate commission works and this article is written to help clear things up and also explain how Big Earth Realty and Blake King save home sellers on commission.

Below is a breakdown using the typical real estate commission scenario and how it compares to Big Earth Realty’s commission savings.

The typical commission when selling your home with a Realtor® is 6% on the first $100,000 of the sale price + 3% on the remainder of the sale price. The typical commission on a home selling for $350,000 is, 6% on the first $100,000 ($6000) and 3% ($7500) on the remainder of the sale price – a total of $13,500. In this scenario, the total is split between the selling agent and the buyer agent, $6500 going to each Realtor® (3% on the first $100,000 of the sale price + 1.5% on the remainder to each Realtor®).

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What Big Earth Realty and Blake King do to save sellers money is by charging less on their selling side commission. Blake King doesn’t charge a full 3% on the first $100,000 and 1.5% on the remainder, he only charges $3000 which is equal to only 3% of the first $100,000. In this scenario, the total split between the selling and buyer agent is only $9500, much less than the typical $13,500 (above).

Big Earth and Blake King require a seller to still pay a commission to a buyer Realtor® but sometimes we’re asked, “why offer a buyer-side commission?”

Here’s why.

For a successful home sale, a commission is best offered to a buyer Realtor® because 99.8% of home buyers use a Realtor® to facilitate a safe secure purchase and a buyer Realtor® can’t afford to sell a home to their buyer clients if no compensation/commission is offered.

For more commission question call, text or email Blake King with Big Earth Realty anytime at (403) 350-7672 or hello@blakeking.ca.