Sell My House Real Estate Agents and Commissions 1 — Questions and Answers
Question 1: What is the traditional total real estate commission rate in the US?
- 1–2%
- 3–4%
- 5–6% (Correct answer)
- 8–10%
Correct answer: 5–6%
Historically, the total commission has been around 5–6% of the sale price, typically split between the listing agent and the buyer's agent.
Question 2: What does a listing agent do for a home seller?
- Represents only the buyer's interests
- Markets the home, advises on pricing, and negotiates on the seller's behalf (Correct answer)
- Handles only the legal paperwork at closing
- Manages the home inspection process
Correct answer: Markets the home, advises on pricing, and negotiates on the seller's behalf
A listing agent (seller's agent) is hired by and represents the seller, providing pricing guidance, marketing, and negotiation services throughout the transaction.
Question 3: What is a 'dual agency' in real estate?
- When two separate agents each represent buyer and seller
- When one agent or brokerage represents both the buyer and the seller in the same transaction (Correct answer)
- When a seller uses two listing agents simultaneously
- When an agent works in two different states
Correct answer: When one agent or brokerage represents both the buyer and the seller in the same transaction
Dual agency occurs when the same agent or brokerage represents both parties, which creates a conflict of interest and is illegal in some states.
Question 4: What is a listing agreement?
- A contract between the buyer and seller
- A contract between the seller and the listing agent authorizing the agent to market the property (Correct answer)
- A government form required for all home sales
- A document that sets the buyer's mortgage terms
Correct answer: A contract between the seller and the listing agent authorizing the agent to market the property
A listing agreement is a legally binding contract that gives the agent the right to market and sell the home and outlines commission terms and duration.
Question 5: What does 'FSBO' stand for in real estate?
- Federal Sale By Owner
- For Sale By Owner (Correct answer)
- Fixed Sale Buyout Option
- Full Service Broker Offering
Correct answer: For Sale By Owner
FSBO stands for For Sale By Owner, meaning the homeowner lists and sells the property without hiring a traditional listing agent.
Question 6: Who typically pays the real estate commission in a US home sale?
- The buyer pays both agents' commissions
- The seller pays the commission out of sale proceeds (Correct answer)
- The government subsidizes real estate commissions
- Each party pays their own agent's commission
Correct answer: The seller pays the commission out of sale proceeds
Traditionally in the US, the seller pays the total commission from the sale proceeds, which is then split between the listing and buyer's agents.
Sell My House Real Estate Agents and Commissions 1
What is the traditional total real estate commission rate in the US?