Author: Heather Connor, Realtor
Why is it important for you to know how a professional realtor gets paid?
Disclaimer: If you are selling your house, this topic is for you. If you are a renter or a buyer, you don’t necessarily need this.
Most realtors in most resort markets like Crested Butte, do get paid very well for what we do. But you have to understand that it is not a straight commission, there’s actually a lot that happens that we are directly responsible for on your behalf for the listing.
As a seller, you want to know what’s in it for me.
1. Professional Fee
The fee is whatever you want to pay that the realtor accepts. It is typically a percentage of the sold price. The professional fee is customarily paid by the seller and it is also paid at escrow when you close on the property.
2. Fee Distribution
It is distributed to:
1. The Seller Brokerage Company
2. The Buyer Brokerage Company.
And then it is further broken down and distributed between:
1. The Seller agent and their company
2. The Buyer Agent and their company.
3. Fee's Purpose
This is what your agent will do with the fee like Digital Advertising, Online Advertising, Print Advertising, Professional Photography, Staging, and Home Inspection (which is not really common here in Crested Butte).
It's an Investment
The Professional fee is the investment in yourself to get the best guidance in marketing, negotiating, disclosures, house prep, market timing, and contract closing.
Not hiring an expert professional will cost you time and money. I do always caution to spend the time to select the right realtor, the right professional to get the job done for you.
