Who pays the Realtor fee? How does a selling bonus work?

Real estate agents are typically paid by commission.  It is common for the broker to pay real estate expenses for agents (including board dues, lockbox, MLS, NAR fees and insurance)  in return for receiving a portion of the commissions earned.  The real estate commission is negotiated between the seller and listing broker (by the agent).  This commission is split between the listing broker and the selling broker.  The broker then pays the agent the percentage negotiated in their agreement.

There is usually a minimum commission for lower priced homes. Sometimes a reduced rate is offered for higher priced homes.  Land and commercial properties typically have a higher commission rate.  Some sellers will offer a bonus to the selling agent, which is added to the agreed commission.  All bonuses must be disclosed and approved by the selling agents broker.

Some sellers will offer a bonus to the selling agent to help get their home sold.   This is an amount above the real estate commission that  is being offered to an agent who is representing a buyer.  Most of the time, the homes shown are ones the buyer wants to see. Their agent doesn’t have much to say in the decision, other than showing homes the buyer asks to see.   I don’t think agents should try to influence a buyer to make an offer on a home (with or without a bonus), and don’t think it’s likely that a buyer would make an offer based solely on an agent’s recommendation.  This selling agent bonus could go toward a lower list price which would make the home more desirable to a prospective buyer.