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Can the commission rate change?
Can the commission rate change? Can an agent decide to charge a higher commission once there's an offer? What if my home takes a long time to sell, can the agent decide to charge me a higher commission? If so, is the agent required to tell me that they are charging a higher commission?
Asked By Cesar | Phoenix, AZ | 700 views | Selling | 1 year ago
Answer(6)
Lynne Pruell
Realty 100 LLC
The commission rate is typically agreed upon in the listing agreement between the seller and the real estate agent before the home is put on the market. Once the listing agreement is signed, the commission rate is generally fixed and cannot be changed without mutual agreement between the seller and agent. the commission rate should be clearly outlined in the listing agreement, and any changes to the commission rate should be documented in writing and signed by both the seller and agent. If the agent does request a higher commission rate, they are required to disclose this to the seller and obtain their agreement before proceeding
- 1 year ago
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Joanne Patience
Iron Valley Real Estate North Florida
Hi Cesar; when you list a home, you sign a listing agreement with a real estate brokerage to sell your home. The listing agreement states the listing terms, commission, and any additional fees associated with marketing the home to procure the buyer. Every state is different; in Florida, we have a written listing agreement with agreed-upon terms signed by the seller and brokerage.
- 1 year ago
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Tania Gardere MacLeod
EXP REALTY LLC
The laws are different in every state but in Georgia and I’d think every where - the rate is agreed upon during the listing agreement in writing. The agent has no authority or raise or lower the commision agreed to be paid by the seller unless its agreed upon in writing.
- 1 year ago
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Melonie Aldridge
ERA BYARS REALTY
In Alabama the commission rate is agreed upon when property is listed and the estimated closing documents reflect the commission rate as well.
- 1 year ago
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Agni Mitra
Keller Williams Arizona Realty
Hi Cesar. Absolutely not! You only pay the rate which you agreed upon when you signed to list your property. No matter how long it takes (or not) the commission rate does not change.
- 1 year ago
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Sarah McGarry
REAL Broker, LLC.
Typically commission is determined during the initial listing period and documented in the listing agreement. Once that agreement is singed, the commission rate is set and cannot change. If changes happen down the road, based on any circumstance, an amendment to the initial listing agreement will need to be signed.
In short, commission rates should not be able to change. If they do, you will have to sign a form to update the listing agreement.
Hope that helps!
- 1 year ago
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