At The Frugal Broker we share our commission with buyer clients as a way of saying “Thank You” for your business.
When a homeowner lists property with a full service real estate broker, typically, the homeowner pays the listing broker a commission equal to 6.00% of the sale price. On occasion, the listing broker will locate the buyer, and collect the entire commission. However, in the vast majority of real estate transactions, a buyer’s broker locates the property on behalf of the buyer, and guides the buyer through the purchase process. At closing, the listing broker and buyer’s broker generally split the commission (i.e. 3.50% for the listing broker and 2.50% for the buyer’s broker).
| Price of Home | Typical Commission Paid by the Homeowner to the Listing Broker (6.00%) | Typical Commission Paid by the Listing Broker to the Buyer’s Broker (2.50%) | Commission Retained by The Frugal Broker (2.00%) | Incentive Paid by The Frugal Broker to the Buyer (0.50%) |
|---|---|---|---|---|
| $50,000 | $3,000 | $1,250 | $1,000 | $250 |
| $75,000 | $4,500 | $1,875 | $1,500 | $375 |
| $100,000 | $6,000 | $2,500 | $2,000 | $500 |
| $150,000 | $9,000 | $3,750 | $3,000 | $750 |
| $200,000 | $12,000 | $5,000 | $4,000 | $1,000 |
| $250,000 | $15,000 | $6,250 | $5,000 | $1,250 |
| $300,000 | $18,000 | $7,500 | $6,000 | $1,500 |
| $350,000 | $21,000 | $8,750 | $7,000 | $1,750 |
| $400,000 | $24,000 | $10,000 | $8,000 | $2,000 |
| $450,000 | $27,000 | $11,250 | $9,000 | $2,250 |
| $500,000 | $30,000 | $12,500 | $10,000 | $2,500 |
| $1,000,000 | $60,000 | $25,000 | $20,000 | $5,000 |
Unlike most buyer brokers, who keep their entire commission (i.e. 2.50%), The Frugal Broker only keeps 2.00%. As an incentive to do business with The Frugal Broker, within ten business days of closing, The Frugal Broker mails buyer clients a check for the difference between the total commission paid to The Frugal Broker (i.e. 2.50%), and 2.00% of the purchase price.
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