How Much Does a Realtor Cost?

A realtor doesn’t cost the home buyer anything!  Realtor’s commissions are paid by the seller.

Sure, your wife’s uncle’s boss’s daughter might be a realtor and she may have done a great job for someone else.  That doesn’t mean that you should use her.  What makes a great realtor is how they handle and prepare for unknown situations that come up during a home purchase.  

A good realtor is worth their weight in gold.  When my wife and I bought our home, our realtor was able to get the seller to accept our offer, even though it wasn’t the highest offer!

Do I Need a Realtor To Buy a Home?

No, but it doesn’t cost you anything to use a realtor as a home buyer.  Why wouldn’t you use a professional to negotiate and do all of the paperwork for you?  It will save you money and from the stress of navigating a home purchase on your own.

What Does a Realtor Do?

A realtor will:

What's The Difference Between a good realtor and a great realtor?

Simply put, a great realtor, like a great mortgage broker and a great real estate lawyer will save you time, money, and stress during your home purchase.

Many realtors will push any purchase in order to get paid.  A great realtor will give you their honest opinion about what a home is worth.  They will advise to be patient not overpay for a home.

A great realtor will :

When I first started buying investment properties, I was unaware of the importance of having a “great” realtor.  I was under the impression that any realtor who had been doing it for a few years would be just fine.  The realtor I used did not draft the holdback clause in the purchase contract correctly.  That little mistake ended up costing me over $3,000 for repairs that should have been paid for by the seller.

How much does a realtor get paid?

Realtors are paid commission from the sale proceeds of the home.  

The typical breakdown of a realtors commission is:


You sell your home for $350,000 
Realtor commissions are 7% of $100,000 = $7,000
3% of $250,000 = $7,500
Total - $14,500
That $14,500 is then split between the buying realtor and selling realtor.  

Looking for more information? Get personalized advice from our team!