13 Sep Who actually pays the real estate agent?
The agents representing the seller and the buyer share a commission (usually 5-6% of the purchase price of the house) when the sale agreement is finalized. The concept of who pays the commission can be tricky to explain, which is why some agents simplify it by telling the buyer that the seller covers the costs. However, that’s not entirely accurate. So, who actually pays what? Let’s find out!
Who pays the bill?
While the payment is technically made by the seller, the amount comes from the money the buyer pays the seller. It’s not uncommon for sellers to cover these commissions by factoring them into the initial listing price. Essentially, buyers are footing the bill for these commissions when it’s time to close. This payment is known as the real estate commission, which is the fee paid to the agent for their services. Typically, this commission is only paid once the agent has successfully sold or purchased the property. The payment takes place at the time of the transfer, usually through the notary. There are different ways the commission can be determined. It may be a percentage of the sale price, or it can be a fixed amount paid in one lump sum.
The average commission for a selling agent is €3,287, according to a recent study by the NVM (Dutch Association of Real Estate Agents). When purchasing a home, the buyer may choose to work with a purchasing agent. The average commission for buying a property is €2,431. The seller pays the fees for the selling agent, while the buyer covers the costs for the purchasing agent. These fees (real estate commissions) are separate from the other expenses the buyer must take on. So, as you can see, it’s not as straightforward as you might initially think.
What do these costs cover?
While many modern buyers prefer to conduct their own research, others choose to work with an agent to find a home. For those who opt for a traditional agent, they will find that their agent spends most of their time searching through property listings, driving to viewings, and conducting price analyses to help them make better offers. Once the buyer’s offer is accepted, the agent will spend their time assisting with inspections and appraisals. They also help with repair costs, closing paperwork, and managing the financial account used to pay inspectors and appraisers.
