Understanding Real Estate Commissions

There are no set amounts for real estate commissions in our area. They are negotiated between the seller and listing broker and can be influenced by local traditions and the market.
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Vinicius Brasil - Santa Clara Real Estate Guy
408.582.3272 - Direct Number
[e-mail]
SantaClaraRealEstateGuy.com
theBrasilGroup.com
Book an appointment with Vinicius:
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Contents of this video
00:00 - Intro
00:49 - How do Real Estate Commissions Work?
02:50 - What are the Real Estate Commissions in Santa Clara County?
06:17 - Agent’s Value Proposition
06:29 - The Full Service Model: (Coldwell Banker, Intero, Compass, Keller Williams)
09:40 - The Discount Model: (Redfin, Upnest, REX, Reali)
12:28 - Flat Fee Model
14:00 - The Brasil Group Model
17:15 - Conclusion
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In most real estate transactions there are two agents involved, with one side representing the seller and the other representing the buyer. Each of these agents are paid a commission when the sale closes. In our current market, buyer agents are typically compensated at a 2.5% commission rate. This is set on the MLS when the property is first listed.
It is important to understand how much the listing agent will offer as compensation to the buyer’s agent. Once you understand what portion of the commission is being offered to the buyer’s agent, you will understand how much the seller’s agent will be earning on the deal.