Top-3 Takeaway: Who Pays Realtor Fees?

A common question we received is “Who Pays for the Realtor Fees”? The answer is the Seller and Buyer are responsible for paying their own agent’s Realtor fees. However, in most cases, the Seller pays for all commissions. Upon the Seller signing a listing agreement with their listing agent, it is customary for the Seller to pay a full commission to their Listing Agent. Together they split the commission and an  “offer to cooperate” with a buyer broker is offered through the multiple listing service. It is important for Buyers and their Buyer agents to check each listing to make sure this offer to cooperate is there; if it is not, the buyer will owe the Buyer agent the deficiency.

For more information about how commissions work, contact the FOCUS on Nova Team today.

“Who pays the Realtor fees?” Top-3 Takeaway.

Well who pays? Generally in Virginia the seller pays. When the real estate agent and the seller sit down at the table and they discuss a listing agreement, they will also discuss the real estate fees that will be paid both to the buyer brokerage as well as to the listing brokerage. They will make that agreement, it’ll be done in writing, and then we’ll send it off to the to the title company or the settlement company to let them know what they’re to pay both brokerages at the closing table. The money does come from the seller and their earnings of which they have made on the investment of the property.

Within the listing agreement also, there may be an additional fee that the brokerages, the listing brokerage and the seller agree upon. That would be if the seller decides to walk out of the agreement without good cause by or before the end of the listing period is over. Again the the price will be discussed at the table with the seller and their realtor.

To sum it up in Virginia the seller pays and the title company will disburse the funds at the closing table.