If you agree to pay your Realtor 6% to sell your house, he will list it in the MLS and offer 1/2 (3%) to any agent that brings a buyer to the table. So, if you sell it yourself and a Realtor knocks on your door, he's going to ask if you will pay the "co-op" of 3%.
The 1/2 that your listing agent offers to a buyers agent is called a "co-operating commission" for a co-operating broker that co-operates with your listing agent by bring a buyer to the table. So if you sell it yourself you may be able to avoid the listing side, but most likely will have to pay the buyers side (3%).
However, it just makes sense to use a Realtor in this market. A competent Realtor does all your marketing, uses all the forms, arranges for showings and security, will negotiate for you while protecting your interests and statistics show they get a higher sales price then when selling it on your own (higher than what you might have saved by doing it yourself - that means not only will you sell it for more than what the Realtor cost, but extra on top of that)
Of the 3% that each agent gets, they have to pay their broker out of that (typically 40-50%), cover marketing costs, licensing costs, and so on and what is left over (.5 to 1%) is what they get to keep.
When you bought your short sale you did not pay all the closing costs....the bank paid the commission to both sides and their own closing costs....what you paid where all of your typical buyers closing costs. It's true; if a bank is taking a loss on a short sale they often will not cover any of the buyers closing costs...but that does not include the 3% you're talking about; the commission was still paid by the bank They may have reduced it to 2 or 2.5%, but they paid it.
Does that clarify it a little?
You can always ask because closing costs are always up for negotiation. However, I will tell you that it is customary in FL for the seller to pay the REALTOR's commission (if thats where you're getting the 3% from) but both sides will have closing costs associated with the transaction. If you have any other questions, please don't hesitate to call.
Jeff Metcalf, REALTOR(R)
Watson Realty Corp.
Don Price USN-RET
When you bought your house, did the seller ask you to pay 3%?
It's a little bit confusing because both the seller and the buyer have closing costs and the buyer is usually asking for the seller to pay some closing costs as a "concession" or an incentive to buy the property. Since the seller is receiving money from the purchase and the buyer is paying, usually the seller is giving back to pay some of the buyers closing costs in addition to their own. However, these amounts come out of the proceeds so they aren't paid up front out of the sellers pocket, it's just less they receive at closing .
If you are the seller, it's customary almost everywhere for the seller to pay some closing costs for the buyer, especially in a buyers market. If the buyer offers full price or above for the property then the seller is more likely to be inclined to contribute to the buyers costs. If it's a low offer AND they want closings costs, not so much. It's the NET you look at; that's how much you actually walk away from the table with, that's important to the seller.
Your Realtor should be able to spell all this out for you. If you have not hired one yet, I'd like to apply for the job. Contact me below.
Keller Williams Jacksonville Realty