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Real estate commissions are totally negotiable!
If an agent ever tells you "it's the law",
they have to charge you a 6% commission, they
are totally wrong!
Real Estate companies cannot group together
and "set" real estate commissions.
Any real estate company can make the decision
to charge any commission they want, within their
own company. When companies group together to
set commission rates, even two companies, they
can be charged with Sherman Act Anti-Trust Violations.
Realistically, most resale commissions in Richmond,
Virginia are 6% of the gross sales price of
the home. This 6% commission is split between
the Listing Company and Selling Company 3% and
3%. The agent who works for a real estate company
is paid a percentage of the gross commission
that his company receives. Most agents will
receive 50% to 80% of the net commission paid
to their company. In many cases, huge referral
fees and/or franchise fees are paid off the
commission paid to the company. The agent's
portion is based on a division of the net commission
retained by his company.
Normally agents are paid a 5% commission on
new homes. The division between the companies
is usually 2.5% to the listing firm and 2.5%
to the selling firm.
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