When buying or selling a home in the beautiful Shenandoah Valley, understanding who pays the real estate commissions is an essential part of the transaction. Here's a breakdown of how the process typically works, specifically in the Harrisonburg, VA market:
The Seller Usually Pays
In most Virginia real estate transactions, including those in Harrisonburg, the seller pays the commission fees for both their listing agent and the buyer's agent. Here's how it breaks down:
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Listing Agreement: When a seller lists their home with a real estate brokerage, they sign a listing agreement that outlines the commission rate. This rate usually falls within a standard range within the region.
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Closing Costs: The total commission for both the seller's agent and the buyer's agent isn't paid out-of-pocket. It's deducted from the seller's proceeds at closing, making the cost part of their overall closing costs.
How Commissions Are Split
The total commission fee negotiated in the listing agreement is typically split between four parties:
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The Listing Brokerage: The brokerage representing the seller.
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The Listing Agent: The specific agent working with the seller within the brokerage.
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The Buyer's Brokerage: The brokerage representing the buyer.
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The Buyer's Agent: The specific agent working with the buyer within the brokerage.
Benefits for Buyers
This system encourages buyer's agents to show their clients a wide range of properties. They know they'll be compensated for their services without buyers needing to pay upfront.
Understanding Real Estate Fees in Harrisonburg, VA
At Valley Realty Associates, we believe in transparency when it comes to real estate fees. Our experienced agents will clearly explain the commission structure and how it impacts your specific transaction, whether you're buying or selling.
Have more questions? Don't hesitate to contact Valley Realty Associates. We're committed to helping you understand every aspect of the real estate process in Harrisonburg, VA.
Get in touch:
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Phone: 540-236-5800
Let us help you navigate the Shenandoah Valley real estate market with clarity and confidence!