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How Much Commission Does A Realtor Make in CT?

Located between New York City and Boston, Connecticut is the perfect destination for those looking for a quieter, more laid-back lifestyle away from the hustle and bustle of the cities. It’s also popular for quick getaways among outdoor lovers and weekend vacationers from the cities. Ranked as the 16th best state in terms of quality of life by U.S. News, Connecticut offers residents a vibrant arts and culture scene, prestigious educational institutions, and top industries in the finance, manufacturing, healthcare, and insurance sectors.

While other areas have experienced a slowdown, the Connecticut real estate market remains in high demand. This is driven by a low housing inventory and shorter times a home is listed for sale on the market. A recent Connecticut Insider article reports that 48.6% of homes in Connecticut were sold over the asking price last year. Average home prices have increased from $319,000 in January 2022 to $351,000 in January of this year. With the housing supply still low, the current state of the seller’s market doesn’t show any sign of waning. And the higher selling prices benefit the real estate industry, and agents are seeing their commissions grow. So how much commission does a realtor make in CT?

How do real estate agent commissions work?

In a home sale, there are usually the buyer’s agent and the seller’s agent or brokerage. First, the seller will enter into an agreement with an agent. The agreement will outline the terms and conditions, including the Connecticut real estate commission rate. The seller’s agent is then responsible for marketing and finding potential buyers for the property.

A buyer’s agent represents the buyer, puts in offers, and negotiates on behalf of the buyer. At the closing of the real estate transaction, all the necessary legal documents are processed, funds from the sale of the property are transferred, and ownership of the property is transferred from the seller to the buyer. Also, the agreed-upon commission is deducted from the seller's proceeds at the time of closing. That commission is further divided between the seller’s agent and the buyer’s agent.

What is the average realtor commission in Connecticut?

The commissions realtors make in Connecticut are not fixed or regulated by law. While some real estate agents may charge a flat fee, most of them charge a percentage of the sales price of the property. Whether it's a flat rate or a commission, the fee is typically negotiated between the seller and the agent or the brokerage.

The exact percentages vary, but it’s common for the commissions to range anywhere from 5% to 6% of the selling price. But keep in mind that commission fees and rates are 100% negotiable. The commission is paid out when the deal is done or at the closing of the real estate transaction. The seller’s agent and the buyer’s agent share the commission. More often, it’s split evenly between the two agents. However, agreements may vary, and it’s common practice for newer agents to get a lesser percentage.

What services does the realtor commission cover?

Real estate agents perform a number of services. Their commission covers performing a comparative market analysis (CMA) for your home and listing it on a multiple listing service (MLS). Other services include preparing, staging, and photographing your home, promoting and marketing it, and showing it to potential buyers. Realtors also help you with the legal paperwork and negotiate on your behalf.

If you’re the buyer, your agent is responsible for finding homes that meet your criteria. They may attend open houses and showings with you. They also handle all the paperwork, put in offers, and negotiate the terms and prices on your behalf.

Who pays the commission on the sale of a home?

In a typical real estate transaction for residential property, the seller of the property pays the agreed-upon commission. The amount is deducted from the seller’s proceeds at the closing of the real estate transaction. Once the commission is deducted, it’s divided between the seller’s agent and the buyer’s agent. There are cases where different arrangements are made regarding the sale of the property.

Why is the commission-based model used in real estate?

Remember that realtors are not paid by salary and don't usually take any payment upfront when they take on a new client, whether it’s a seller or a buyer. Instead, realtors earn the commission after the closing of the real estate transaction. The commission-based model is an excellent incentive for the agent to sell your home for the highest price and in the shortest time. This maximizes their earning potential from each sale.

What is the difference between an agent and a broker?

A real estate agent is a licensed individual who can represent clients when they are selling or buying property. Their responsibilities include helping clients with property searches, home showings, marketing, negotiation, and paperwork. Real estate agents work under the supervision of a real estate broker or brokers.

A real estate broker has to complete additional training and licensing requirements. They do the same job as agents but can work independently without higher supervision. Brokers can employ different agents to work for them. In addition to fulfilling the same responsibilities as an agent, brokers can provide services such as real estate development, investment, property management, and other specialized areas of the industry.

Why should you work with Sell Save More?

Sell Save More is a luxury brokerage with a full-service team who can handle all aspects of selling your home. Creator and founder Gen Distance has crafted a “choose your commission” strategy to give sellers the ability to choose the level of marketing assistance they need when selling a home in Connecticut. Even in this rapidly-changing real estate environment, Sell Save More recognizes the importance of providing five-star service. It doesn’t matter which commission plan you choose; you will receive the highest quality of dedication and attention.

Work With Gen

Contact Gen Distance and her team at GEN Next Real Estate today. There is no better choice when selling, buying or renting a home.

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