How Are Realtors Paid In Illinois?
How are Realtors Paid In Illinois? Real estate agents are paid on a commission basis, usually 5-6% of the property’s sale price, often split between the buyer’s agent and the listing broker.
A real estate agent in Illinois, is paid, depending on the home sale price. Most people are motivated to get a real estate license by the impressive amount of money they can make in the real estate sector. But, in reality, a Chicago real estate agent makes money by earning a commission or a sale percentage when they help an individual sell or purchase a property.
Check out this guide below to understand how Illinois real estate agents are paid.
How does a realtor get paid when buying a house in Illinois?
Real estate agents are mostly paid on a commission basis, usually 5-6% of the property’s sale price, often split between the buyer’s agent and the listing broker.
Both the seller and the buyer often have agents representing their interests and who need to be compensated.
Unfortunately, most individuals don’t understand who between the seller and buyer is responsible for the agent fees. Do the buyer and seller collectively pay their realtors? How does a realtor get paid when selling a house in Chicago, Illinois?
Most property buyers are often surprised to discover that realtor fees come from the “listing side” of the sale.
When a realtor puts up a home for sale, the realtor fees are often sorted between the seller and their listing agents. Therefore, as a buying agent, when you close the deal, the seller’s agent splits the listing fees with you. Buyers are then not responsible for the agent fee.
However, agents generally are paid based on what they negotiate. A buyer’s realtor can also negotiate and agree with the buyer on how they should be paid once they buy the house.
How do realtors get paid when selling a house in Illinois?
At the end of an Illinois home sale, a seller pays several expenses referred to as closing costs. When selling a house in Chicago suburbs or general Chicago, expect to pay between 2-3% of the property’s sale price in closing costs. In addition to these costs are the 5-6% realtor commission fees that a seller pays.
Therefore, when a realtor sells your house in Illinois, you will have to pay the agent the agreed realtor fees, which are often split with the buyer’s agent, subject to agreement.
Generally, the seller pays both the selling and buying agent their agent commission, 3% each, 6% in total, or whatever negotiated.
When does a realtor get paid in Illinois?
Legally, realtors should be paid only after the home sale deal has been closed. Commission payments are usually a line item on the closing statement. A brokerage firm releases the realtor fees once the sale records is complete.
Sellers pay a sale price percentage as a commission split between the agents representing the seller/listing agent and buying agent. Some realtors are generally not allowed to accept upfront payments or hourly rates. Illinois realtors typically get paid when the deal is done. Realtors are paid after the closing of the home.
What does a realtor do to earn their pay?
Ever wondered what a real estate agent does to earn their pay? Unlike a lawyer who bills you by the hour, a realtor doesn’t accept any payment form until the deal is closed. This often leaves buyers and sellers curious as to the nature of the realtor’s jobs.
Below is a compiled list of things that realtors in Chicago do to earn their pay.
- Realtors shop property online. The average real estate agent spends roughly two to three hours daily researching potential properties. Property listings come and disappear in the real estate industry, meaning agents have to be constantly checking multiple listing service databases.
- They go prospecting. The realtor represents the buyer’s interests, which include checking out potential properties. Part of their job description is to visit several listings to source for the buyer’s needs and specifications.
- Realtors invest in marketing. Some agents spend their money to advertise a property on newspaper ads or premium placements on listing sites.
- Agents write up offers and counteroffers. These are exemplary components of a real estate transaction since they can save or earn you thousands of dollars on a sale. Agreeing on the right price requires writing offers and counteroffers, a task often taken up by realtors.
- Realtors assess home inspections. A professional agent should be present during inspection time. It helps the sale process go smoothly by ensuring a buyer gets what they want in its best quality.
Generally, realtors are hired to ensure a home sale and purchase runs smoothly.
How to Save on Realtor Commissions
If you want to save significantly on realtor commission feels, below are several options to try out;
1. Try negotiating realtor fees yourself.
2. Sell with a discount real estate broker offering built-in savings
3. Hire a flat-fee MLS company or a limited-service agent
Generally speaking, do not expect to knock out more than approximately 2-3% of the entire commission fee with no significant service-level tradeoff. Ultimately, your saving depends on how you go about reaching those savings.
How Realtors Get Paid in Chicago
If you are selling your house in Illinois, whether in the Chicago suburbs or the greater Chicagoland, you will need to pay a realtor to help you sell or buy a house. The standard realtor fees are usually around 5-6% of the house sale price. However, due to the increased competition among realtors in Illinois, most agents can accept anything lower than the standard price percentage.
Ensure you hire a professional realtor to help you get the best property deal to match your needs and budget. We are Illinois Realtors providing Chicago residents with top realtor services. Reach out to us if you need any representation on buying or selling real estate in the Chicagoland area.
Posted by Rafael Velasco on