How Commissions Benefit A Home Seller

Understanding How Broker Commissions Work For A Home Seller Imagine this, Mr. Seller:

You’ve hired a painter to paint your house, but you need it done as quickly as possible. The painter decides to hire some help to get the job done faster. Naturally, the painter pays this extra help out of the money you’re paying them because it helps get your house painted on time, right? Now, think of the listing Broker as the painter.

When you hire a listing Broker to sell your home, part of their strategy to get your house sold quickly is to offer a portion of their commission to the buyer’s Broker. This motivates buyer agents to bring their clients (potential buyers) to your home, helping it sell faster.

If you choose not to allow the listing Broker to compensate the buyer’s agent from the commission, it’s like telling the painter they can't pay their helpers. The result? The work slows down. In real estate, this means your house could sit on the market longer because most buyers don’t have the extra cash to pay their broker out-of-pocket. Plus, buyers Broker may be less inclined to show your property if they’re not being compensated, after all. No one wants to work for free.

Commissions have always been negotiable with the listing Broker, and sharing that commission with the buyer’s Broker has always been a WIN-WIN. This approach helps get your home the exposure it needs, and you’re more likely to sell quickly and at a good price.