WHAT IS A COMMISSION?
If you want to purchase a property with the assistance of a licensed Realtor, in the State of Connecticut you must sign an "Exclusive Right to Represent", or Buyers Broker contract. There is a fee for this service. This is called a commission. When you purchase a home through a Realtor who is a member of the Multiple Listing System, the commission is usually paid by the seller of the home, and is divided between the Seller's Realtor and the Buyer's Realtor. It is usually calculated as a percentage of the selling price for a home.
THE LAW:
The amount or rate of Real Estate Broker compensation is not fixed by law. It is set by each broker individually and may be negotiable between you and your Broker.
TYPICAL COMMISSION ARRANGEMENT:
Most commissions today are between 4 and 6 percent of the sale price of the home. Five percent is the most common listing commission, and it is usually split fifty-fifty between the Buyer's Broker and the Seller's Broker. Using a $500,000.00 home as our example, the five percent commission that the seller will pay in commission to the Realtors is $25,000.00. Half of this amount is $12,500.00. So if you are working with a traditional broker, they will receive $12,500.00.
PREOH COMMISSION ADVANTAGE: CASH BACK
When you engage Preoh as your Buyer Broker, Preoh agrees to share the commission with you. In a typical transaction using a purchase price of $500,00.00 and the commission offered is the typical 5% that is split fifty-fifty between the Seller's and Buyer's Broker, the 2.5% commission due Preoh would be $12,500.00. Unlike a traditional broker, Preoh will give you you half of that. That is correct - Preoh will keep $6,250, and give you $6,250.
In order to be a Full Service Broker at the lowest possible commission, Preoh offers some services A la carte. The Preoh A la Carte menu is not a profit center. We want to attract buyers who are truly ready to buy! Many A la carte services are things that you the buyer can do for yourself.
