Parris Petals Designs

Archive for June, 2009

The broker’s fee is typically paid by the seller from the proceeds of the sale. Contrary to popular opinion, the fee is not fixed, either by law or by industry practice. It is subject to negotiation by the broker and the seller. As a practical matter, however, you’ll find that the majority of brokers in most areas charge a fee of about 6 to 7 percent. A broker’s willingness to negotiate the amount will vary, of course, depending on the area and on market conditions. The tighter the market, the more flexibility brokers will show.
Although the fee is paid by the seller, most sellers start with a bottom-line idea of how much they want to make on their house and then add in the broker’s fee on top. This is why many buyers rightly assume that it is they who are actually paying the fee. When market conditions are difficult and home sales particularly slow, though, some brokers will waive a portion of their fee in order to help bring a buyer and a seller together and close a deal that might otherwise fall apart.