If I had a dollar for every person that has ask me a question about the topic I’m sharing with you, I would be a millionaire! Maybe after sharing, I will become one!
I think in any business we become so used to doing what we do, we sometimes forget that everyone else around us might not know and understand. So, I hope this helps to clarify.
When you have a property or house you are interested in listing for sale, choosing the right Real Estate Firm and most importantly the right realtor/agent is essential. Once you make the decision to move forward with that person, they will begin to prepare a listing agreement. The seller will then agree with the Firm/realtor, on a percentage the seller will pay the firm for having the realtor represent them. Once the paper work is completed and signed, the realtor will begin entering all important information regarding the property into a MLS service (Multiple Listing Service). Once this is completed, and of course the pictures, the listing will go live on the market and will be available for ALL real estate firms and realtors to sale. Whatever the percentage agreed upon initially with the listing agent,(referred to as commission) will then be split between the listing firm/realtor/agent and the person who actually sells the property. This commission will be a percentage of the purchase price of the property at closing. At any rate, the seller will only pay one fee, the original agreed upon amount.
The question I could retire on that seems to get confused the most. Does the firm/realtor that has the property listed for sale, have to be the one that shows and sells the property???? Absolutely not! Whoever lists the property, can also sell the property. But, any other Firm/Realtor/Agent, can also show and sell the property! So many people think if ABC Realty/agent has a property listed, they have to be the ones to show and sell it! That is incorrect. XYZ Realty/agent, can show and sell the property, (no matter who has the listing) and they will receive an equal split of the commission, when it sells!