Whether you're planning to buy or sell your Northern VA home, it is important for you to understand what commissions are and who pays for them.

A real estate commission in Northern VA, is a fee typically paid by the seller for the services of both the listing agent (also known as the seller's agent) and the buyers agent (known as the buyer’s agent). Yes, that’s right, the seller typically pays the agent that represents the buyer as well as their own listing agent. This commission is usually 6% of the sale price and is given once the deal has been closed. The payment, is not directly given to the agents but instead is paid to the brokerage they work for.

Listed below are certain factors that influence how much a real estate commission is:

Experience - agents who have only been in the real estate industry for a short while will get lower rates than those who have been in it for long. Meanwhile, top agents may get 100% of the commission fee and just give their broker a desk fee.

Locality - the real estate market in Northern VA may either be moving slowly or fast-paced in different states or localities, and the agent's commission sways with the state of the market. Home buyers should acquaint themselves with local co-brokerage fees so that they would know if the agent working for them is being paid completely by the seller, or if additional fees will be charged to them.

Agreement between parties - the percentage of the split in commission is based on the discretion of the real estate agent parties. There are also instances when the seller or the agent will negotiate on the percentage of the commission.

1. Familiarize yourself with the different people part of the purchase - Whether you're a buyer or a seller, real estate agents are the ones who you would most likely interact with the most during the process. They act as your representative to the other part. it’s good to know each person and their specific role during the process. Here is a brief description of each type:

• Broker - Brokers rank higher than agents in that they take an exam for licensure with stricter requirements such as completion of eight-level and at least two years of real estate experience. They can choose to either operate on their own or hire agents and they are responsible for the actions of the agents they hire.

• Agent -  Agents are also licensed by Virginia state, but unlike brokers, they cannot work independently and must be contracted to a broker. There are agents which work exclusively for each party in the transaction -- listing agent for the seller, and buyer’s agent for the buyer. It’s important to note that it is legal in Virginia for a dual agent, or an agent who represents both the buyer and the seller.  However, we do not allow duel agency in the J Group, as each party will be assigned a different agent.

     2.  Know the rates - As stated previously, there are several factors that affect commission. But just to arm yourself with more knowledge, remember the customary commission for the entire transaction is 6%, typically split 50/50 between the listing broker and buyer broker. Keep in mind when selling your home, the commission is negotiable with the listing agent.
     3. Know what a buyer’s agency agreement is - This is an agreement between a buyer and a licensed brokerage firm or a real estate agent that stipulates both of the parties’ commitment to the sale and to assure the agent or the firm that they will be duly paid after closing. A buyer broker agreement is required in Virginia for the agent to legally represent you. Buyer beware, if you do not have a buyer broker agreement in place with your agent when it comes time to start your home search.