Real estate agent fees are how most agents are paid for the homes they sell. This commission can vary. But in real estate, who is responsible for paying the commission—the buyer or the seller?
Who pays the commission of the real estate agent?
If you’re buying a home, you’re probably off the hook for paying the commission of the real estate agents. The home seller usually picks up this payment. Typically, the fee is paid by the seller at the settlement table, where the fee is subtracted from the proceeds of the home sale.
The agent fee is typically paid by the seller to the listing broker who, in turn, shares part of it with the agent who brings a buyer to the table.
When the sellers set a listing price for the home, they usually take the agent’s commission into account; it’s the cost of doing business.
How much is the commission for a Kenya Homes’ agent?
The commission is a percentage of the sale price. So the specific amount depends on how much your home sells for, but it’s commonly between 1% to 5% of the sale price. For example, if the home sells for Kes 5,000,000, the real estate agent commission of 5% would be Kes 250,000.
The commission is split between the buyer’s agent and the seller’s agent. It’s a separate contract between the brokers and not something the buyer gets to negotiate as part of the offer.
Dual agency: When one agent represents two parties
It’s not a common situation in real estate, but if the agent you’ve hired to represent you also represents the seller of the house you’re buying, it’s called dual agency. Dual agents, also known as transaction brokers, represent the interests of both the buyer and the seller.
Although some advisors who advise against dual agency worry about potential conflicts of interest—the chance that the interests of both the buyer and seller will not be met. And to their credit, we understand how this could be a problem.
When it comes to the real estate commission, a dual agent gets to keep everything because he or she is doing more work by representing both sides.
Kenya Homes is more on the dual agency side. We tend to focus on both the sellers and buyers’ needs. Be in touch with us for all your housing needs.