Consumers who live in states permitting the option to choose innovative brokerage options, such as rebates or fee-for-service MLS-only packages, can potentially save thousands of dollars on commission payments.
This table shows that consumers can save more than $6200 in commissions on the sale of a median-priced home.
Table: Brokerage Options and Potential Savings on Home Sold for $184,334
| Option |
Seller’s Broker Commission
|
Buyer’s Broker Commission
|
Total Commission
|
Saving
|
|---|---|---|---|---|
| Full-Service (5.3% commission) |
$4,885
|
$4,885
|
$9,770
|
$0
|
| Buyer: Broker Rebates 1% |
$4,885
|
$3,042
|
$7,927
|
$1,843
|
| Seller: Fee-for-Service, MLS Only |
$500
|
$4,885
|
$5,385
|
$4,385
|
| Buyer and Seller Savings Combined |
$6,228
|
|||
For more information:
For details on brokerage options available in your state, see Real Estate Laws in Your State.
To learn more about rebates, see Rebates Make Buying a Home Less Expensive.
To learn more about brokerage services and fee-for-service options, see Discount Brokers Can Make Selling a Home Less Costly.
Notes:
All sales models assume a 50/50 commission split between seller's and buyer's broker.
Full-service commission rate of 5.3% is based on REAL Trends 500©.
For examples of 1% buyerç´ broker rebate offers, see “A Fresh Attack on the 6% Commission,” Money, 04/11/2006.
For examples of $500 MLS only fee-for-service offers, see “Discount Real-Estate Brokers Spark a War Over Commissions,” Wall Street Journal Online, 10/13/2005.
Savings are relative to the total commission paid for the full-service option.
Consumers who choose options other than full-service may not receive as many services as consumers who choose the full-service option.