As you’re considering selling your home, one choice you must make is which real estate agent and brokerage you want to partner with. To do this, many homeowners ask for recommendations from family or friends, do a Google search, or rely on a friend who is an agent.
But a more financially savvy way to approach the selection process is by looking at the real estate agent’s commission structure. Think about how much you’ll have to pay the agent and what you get for your investment.
Coldwell Banker is one of the leading real estate franchises in the country. They’re also one of the oldest, which is why many sellers choose them to sell their homes.
Here’s a closer look at the Coldwell Banker commission model and how it affects you as the home seller.
How Do Coldwell Banker Real Estate Agents Get Paid?
Like all real estate agents, Coldwell Banker agents receive a commission on every transaction, either as a buyer’s agent or a seller’s agent. Sellers will pay 6% of the final sale price of their home in commissions, which are split 50/50 between the buyer’s agent and seller’s agent.
But what many home sellers don’t realize is that agents don’t get to keep their entire commission. In the Coldwell Banker model, most brokerages follow a 60/40 split model, meaning that the agent keeps 60% of their commission and the brokerage receives 40%.
Using the national median home value of $226,000 as an example, this means that the seller would pay out $13,560, or 6%, in real estate commissions. The buyer’s agent and the seller’s agent would each receive $6,780 in commissions. If the agent was part of a Coldwell Banker brokerage, the agent would walk give $2,712 to the brokerage and walk away with $4,068 in their own pocket.
The actual commission split may vary, depending on brokerage. Coldwell Banker has nearly 3,000 offices in 49 countries, so there’s a good chance that the commission structure may vary.
What Does the Seller Get in Return?
As the seller, you pay for both the buyer’s agent and your own agent’s commissions. Sellers need to know what they’re paying for and what they can expect to get in return.
When you hire a real estate agent, you do so expecting the agent will make the home selling process easier and faster for you. The agent is responsible for listing your house on the market, taking photos, scheduling open houses and showings, and trying to find you a buyer. They’re also a valuable resource when choosing repairs or upgrades to your home, adding curb appeal, making negotiations, and going through the closing process.
For many sellers, having an agent is a worthwhile investment and don’t mind paying for their services. Studies show that sellers who use an agent get 32% more for their home sale than if they were to sell the home themselves.
Using an agent will get you nearly a third more than if you go it alone, yet you’re only paying 6% to get this boost in profits. The end more than justifies the means, and sellers shouldn’t sacrifice the value a real estate agent brings to the transaction just because they have to pay commissions.
Why Clever is a Smart Alternative to Coldwell Banker
The bottom line is that when you use a Coldwell Banker agent, you will probably have to pay a full commission — 3% to your listing agent, then an additional 3% to the buyer’s agent involved in the sale. Using the national median home value of $226,000 as an example, this means you would pay out $13,560 in real estate agent commissions alone!
Clever provides a financially smart alternative that lets you get the same service and expertise of a top-rated agent for a fraction of the cost. Our Partner Agents are full-service real estate agents from major national franchises like Coldwell Banker. The only difference is that they work for a flat rate fee of just 1%, giving sellers significant cost savings on commissions up front. This gives sellers an opportunity to work with a reputable real estate agency without having to sacrifice as much of their hard-earned profits.
Connect with Clever today for a no-obligation consultation and let us introduce you to a real estate agent in your area!