Who Pays the Real Estate Commission?

Kim Ward, a Realtor in San Diego, explains how real estate compensation works in a home sale. Typically, the seller pays the compensation, which is based on a percentage of the final sale price. The compensation is split between the seller’s agent and the buyer’s agent. Compensation is negotiable, and Kim advises that how a Realtor negotiates their own compensation can be a good indicator of their ability to negotiate on behalf of their clients during the sale.

Kim also touches on discount brokerages, which may offer lower compensation but often provide fewer services, such as limited help with preparing the home for sale. She emphasizes the importance of choosing a full-service Realtor who manages the entire selling process, including preparation and marketing, to achieve the best results. Kim encourages sellers to be cautious of sales gimmicks and to invest in a skilled professional with a proven track record to sell the home quickly and for the best price.