How Most Listing Agents Work

Jacksonville Real Estate News


Updated: Tuesday, May 22, 2012
The listing agent is not paid per house or cost plus. They take the risk of putting their money and time into marketing the seller’s property to sell it. The more advertising the listing agent does, the more money they have put into your property. The agent therefore has a big incentive to sell your Jacksonville house as fast as possible to keep the expenses down. Some sellers may consider going with an agent that will list their home for less. For that person to do so would mean less advertising in order to pay fewer expenses. When someone is paying out of pocket to sell your house, they will obviously have a smaller incentive to get your house sold. For instance, consider that a listing agent is making 3 % when your home closes. Fifty percent of this goes to the broker of the firm to cover the cost of office expenses and staff. The listing agent is left with 1.5 %. Advertising usually takes 1%, so the listing agent is left with .5% before taxes. When negotiating the commission made by the agent, you are either reducing the amount the selling agent is paid or the amount of advertising you will receive. These are all careful things to consider when choosing a Realtor.

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