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Meeting with the Realtor Four features that determine highest price CMA- What is your house worth? Consulting with Realtor to determine price Best marketing tools to sell real estate
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Commissions explained Traditionally the commission is paid for by the seller from the equity of the house. And for the seller this always seems like a such a burden. It is rarely understood how the commissions paid are "trickled" down to each party, including Uncle Sam. The commissions paid are split four ways. What ever the commission is that the seller and broker agree on, is then split between that seller’s agent and the agent that brings in the buyer. And it doesn’t stop there. Then, each agent (unless a licensed and independent broker themselves) splits their gross commission in half with their broker. Then, Depending on whom the agent works for, if it is a national franchise, there are franchise fees that are automatically deducted from their commission prior to the close of escrow. Some go as high as 8% To better understand this, let’s use an example. A house sold for $200,00 and commissions paid were at 6%. The gross commissions to be split would be $12,000.00. Each side (buyer’s agent and seller’s agent) gets half. So lets work with just the seller’s agent to keep it easier. Let’s say the seller’s agent is at a 50% split with their broker. So the agent is left with $3000.00 gross commissions. Then, if they work for a major company, their franchise fees could be as high as 8%. 8% of $3000 is $240. Minus that from their gross commissions are they’re left with $2760. Their net commissions is $2760, but it doesn’t stop there. Then they have to deduct what costs were invested to market the home (advertising, brochures etc.), these costs come from the agents pocket. And last but not least, being an "Independent Contractor" the agent must deduct about 30% of their gross commissions (in this case 30% of $2760 equals $1050.00) to set aside and pay taxes. Let’s say that marketing cost them at least $500.00, So what is the average agent left with? a whomping $1210 for about 45 days of work. Total commission was $12,000 Split 50/50 between Listing Office & Selling office= $6000 each Split 50/50 between agent and broker= $3000 each Take out 8% for franchise fees=$240 Take out 35% for taxes=$1050 Plus take out $500 on average for marketing expenses. Total left for the agent $1,210.00 That's a big difference from 12,000.00 dollars
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© 2001 OChomeprices.com - All rights reserved. Written By Shan & Raschel Roberts |
Real Estate Commissions
Orange County Real Estate
Orange County Realtors
History of Orange County
The colorful pageantry of human history in Real Estate Commissions began at some undetermined point in the distant past when
Shoshone Indians came to dwell along the coast and in the lower
canyons of the mountains. Theirs was a simple form of existence: they
lived off of the abundance of the land.
In 1769, Gaspar de Portola, a military man and Spanish aristocrat, was
appointed governor of Lower California. He commanded an expedition
traveling northward into the literally unmapped and half mythical
territory of Alta California. His assignment was to seek out the
legendary Bay of Monterey. He was also to secure the Spanish claim to
his vast frontier against any invasion from Russian trappers or
British colonizers. Portola called upon Father Junipero Serra,
president of the Mexico City Missionary College, to assist in this
monumental undertaking.
It was late in July in 1769 when this first party of European
explorers reached the boundaries of present-day Real Estate Commissions. Members
of the expedition named the region "The Valley of Saint
Anne" (Santa Ana). It was to this valley that Father Serra
returned six years later, where he proceeded with the work of
establishing the Church and converting the local people.
While the East Coast of North America was engaged in revolution and
spectacular change, the West Coast too was undergoing a quiet and
almost undetected transformation. Father Serra dedicated the Mission
of San Juan Capistrano, Real Estate Commissions's first permanent settlement, on
November 1, 1776. The Mission became a self-sustaining unit based upon
an agricultural economy. Its chapel and adjoining structure were the
first signs of civilization erected upon the fertile, virgin soil of
the Santa Ana Region.
In 1801, Jose Antonio Yorba, a volunteer in the Portola expedition,
also returned to Santa Ana. He established the county's first rancho
(Santiago de Santa Ana) in what are today the cities of Villa Park,
Orange, Tustin, Costa Mesa and Santa Ana.
Following Mexico's liberation from Spanish rule in 1821, the extensive
land holdings of the Capistrano Mission were subdivided and awarded to
a number of distinguished war heroes. By this time Yorba's Rancho
Santiago de Santa Ana had grown to resemble a feudal manor, and the
romantic rancho era of Real Estate Commissions had been ushered in.
Cattle were introduced into the area in 1834. A prosperous hide and
tallow industry developed. Southern California became a virtual suburb
of New England as sailing ships loaded with cargo traveled back and
forth between coasts. In 1835, author-seaman Richard Henry Dana
arrived at what is today known as Dana Point. He later immortalized
Spanish Real Estate Commissions in his book "Two Years Before the
Mast" by describing it as "the only romantic spot on the
Coast." The Spanish California tradition of a carefree lifestyle,
fiestas with music and dancing, bear and bull fights, rodeos, and
gracious hospitality, survived until the 1860.
A severe drought brought an end to the cattle industry. Adventurous
pioneers, such as James Irvine, capitalized on the economic downfall
of the ranchos. Irvine, an Irish immigrant, established a 110,000-acre
sheep ranch that is today one of the most valuable pieces of real
estate in America.
In 1887, silver was discovered in the Santa Ana Mountains. Hundreds of
fortune seekers flocked to the "diggings." Land speculators
and farmers came by rail from the East to settle in such boomtowns as
Buena Park, Fullerton and El Toro.
Real Estate Commissions was formally organized as a political entity separate
from the County of Los Angeles in 1889. The wilderness had finally
given way to irrigated farmlands and prosperous communities. A
year-round harvest of Valencia oranges, lemons, avocados, and walnuts
made agriculture the single most important industry in the fledgling
county. And with orange groves beginning to proliferate throughout the
area (150,000 orange trees), the new county was named for the fruit:
"Real Estate Commissions."
The twentieth century brought with it many industrious individuals
such as Walter Knott, a farmer turned entrepreneur, who founded the
Knott legacy in Buena Park.
During the years that followed, Real Estate Commissions witnessed the discovery
of oil in Huntington Beach, the birth of the aerospace industry on the
Irvine Ranch, and filming of several Hollywood classics in the Newport
area.
In 1955, Walt Disney opened his Magic Kingdom in Anaheim. Noted as the
pioneer of animated films, Disney revolutionized the entertainment
world again with his "theme park" recreation concept.
By 1960, the neighboring metropolis of Los Angeles was "bursting
at the seams." As the population spilled over the county line and
across the rural Santa Ana Valley, it left in its wake an urban
landscape of homes, shopping malls, and industrial parks.
Today Real Estate Commissions is the home of a vast number of major industries
and service organizations. As an integral part of the second largest
market in America, this highly diversified region has become a Mecca
for talented individuals in virtually every field imaginable. Indeed
the colorful pageant of human history continues to unfold here; for
perhaps in no other place on earth is there an environment more
conducive to innovative thinking, creativity and growth than this
balmy, sun bathed valley stretching between the mountains and the sea
in Real Estate Commissions.
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