How to Pay the Real Estate Agent


If you’re a home seller, you’ll have to decide how to pay the real estate agent. You can either pay a flat rate for both the buyer’s agent and the listing agent or split the commission. In some states, you can ask to have the commission credited toward closing costs, but this isn’t always the case. Instead, you should discuss the amount of the commission with your agent.

Negotiating real estate commissions

Many agents will negotiate the commission rates when you are paying them, but the question is: how much can you negotiate? If the commission rate is too high, you can try to negotiate a lower rate with the agent. According to a Consumer Federation of America report, 73% of listing agents declined to negotiate. The report surveyed 200 agents in 20 cities to see which agents would agree to lower commission rates. Also read


Reasons to pay a real estate agent

When buying a new home or selling an existing property, you should hire a real estate agent. They will help you price your property correctly to maximize the profit margin. Pricing your home right can make or break the sale. An agent will help you arrive at an accurate price that will be attractive to local buyers and attract the highest possible profit. There are several reasons to pay a real estate agent for their services. Here are three of the most common ones:

Splitting commission between buyer’s agent and listing agent

A real estate seller and a buyer’s agent can agree on a split of the commission, but the details are usually a little complicated. While some commissions are split equally, others are split among more parties. In a seller’s market, the listing agent will usually get most of the commission, while the buyer’s agent will receive a smaller portion. A split commission agreement between buyer’s agent and listing agent is typically determined in the seller’s listing agreement and is published on the MLS.


The US Tax Code is constantly changing, and many agents are struggling to keep up. Changes to the code can have a major impact on your income tax liability. For example, while for decades agents were able to deduct 50% of the cost of entertaining clients, that deduction is now eliminated for 2018 and forward. There are some simple steps you can take to make sure you’re paying as little tax as possible.

Business expenses

While you’re working to find the best property for your family, you should consider deducting all your real estate expenses as business expenses. After all, a real estate agent spends a lot of time working with clients, coworkers, brokerages, leads, and finance. Tracking down receipts and using complicated accounting software can be time consuming and stressful. Fortunately, you can save yourself both time and headaches by deducting your business expenses from your income.  




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