Agent Commission what is?

What is Real Estate Commission?


Understanding Real Estate Commission A Detailed guide by RE/MAX Thailand 

In the dynamic world of real estate, various terms and processes are pivotal to understanding the intricacies of the industry. One such fundamental aspect is the real estate commission. Whether you are a Real Estate Agent, a home owner, or someone curious about the workings of the real estate market as an agent, understanding the concept of commission is essential. In this guide provided by RE/MAX Thailand, we will delve into the definition, significance, and practical implications of real estate commission, accompanied by a pertinent case study to illustrate its practical application.

What is Real Estate Commission?

Real estate commission refers to the fee paid to real estate agents or brokers for their professional services in facilitating a real estate transaction. Typically, the commission is calculated as a percentage of the final sale price usally 3% - 5% of a property final sale price and is paid to the listing agent and maybe shared between the listing agent and the buyer's agent if involved in the transaction. This incentivizes real estate professionals to diligently work towards securing favorable deals for their clients, thereby aligning their interests with the overall success of the transaction.

In the context of a real estate transaction, RE/MAX Thailand emphasizes the pivotal role played by real estate agents in guiding, advising, and representing their clients throughout the complex process of buying or selling a property. As such, the commission serves as a tangible recognition of the expertise, effort, and resources invested by real estate professionals to ensure a seamless and successful transaction for their clients.

Case Study: The Impact of Real Estate Commission

To further elucidate the significance of real estate commission, let's consider a hypothetical case study that exemplifies its practical application. 

Imagine a scenario where a homeowner decides to sell their property through a reputable real estate agency such as RE/MAX Thailand. The homeowner engages the services of a listing agent who meticulously assesses the market value of the property, devises a compelling marketing strategy, and showcases the property to potential buyers. On the other side, a prospective buyer, seeking the expertise and guidance of a buyer's agent, is matched with the property listed by the seller.

As negotiations ensue and terms are agreed upon, the real estate commission comes into play. Upon the successful completion of the transaction, the seller's agent and the buyer's agent receive their respective shares of the commission as a reward for their dedicated efforts in facilitating the sale. This mutually beneficial arrangement not only motivates the agents to act in the best interests of their clients but also ensures the smooth functioning of the real estate market as a whole.

Real Estate Commission at RE/MAX Thailand: A Commitment to Excellence

At RE/MAX Thailand, the concept of real estate commission is intrinsically tied to the core values of professionalism, integrity, and client-centric service. With a steadfast dedication to exceeding client expectations and delivering exceptional results, our network of experienced real estate professionals goes above and beyond to ensure that every transaction is handled with the utmost care and diligence.

In line with our official tone of voice, our commitment to transparency and ethical conduct shines through in our approach to real estate commission. We believe in providing clear and comprehensive explanations to our clients, enabling them to make informed decisions with confidence. With RE/MAX Thailand, clients can rest assured that the real estate commission they pay translates into unparalleled expertise, personalized attention, and unwavering support at every stage of their real estate journey.

In Conclusion of What is Commission 

Real estate commission is not merely a financial transaction; it encapsulates the collaborative efforts of real estate professionals and the tangible value they bring to the table. By understanding the intricacies of real estate commission and its implications, clients can navigate the real estate landscape with clarity and empowerment.

With this comprehensive guide provided by RE/MAX Thailand, we hope to demystify the concept of real estate commission and underscore its significance in the realm of real estate transactions. As a beacon of trust and excellence in the industry, RE/MAX Thailand remains committed to upholding the highest standards of service and professionalism, ensuring that every client's real estate experience is nothing short of exceptional.


Real Estate Definitions 

“Time is of the essence”
Agent
Agreement of sale
Alienation
Alienation clause
Amendments
Amenities
Appraisal
Appreciation
Arbitration
Assessment
Balloon payment
Beneficiary
Breach of contract
Broker
Broker Agent (Salesperson)
Brokerage Owner
Building restrictions
Business plan
Capital Gain
Capital investment
Capitalization
Capitalization Rate
Cash flow
Closing
Closing or Completion
CMA
Code of Ethics
Collateral
Commercial Property
Commercial Zone
Commission
Comparable (Comps, Sales Comps)
Comparable Market Analysis
Contingencies
SaleContract
Contract for deed
Cost approach
Counteroffer
Debt
Deed
Default 
Deposit or Down Payment
Down Payment
Earnest Money
Endorsement
Equity
Escrow
Exclusive Listing Agreement
Exclusive right  to sell listing
Exclusive-agency listing
Execution 
Executor
Expenses
Fixture
For Sale By Agent
For Sale By Owner (FSBO)
Foreclosure
Foreign Quota
Franchise
Fraud 
Freehold estate
Future interest
Grantee
Grantor
Heir
Highest and best use
Identity 
Income approach
Independent contractor
Industrial property
Inspection
Instalment Contract
Installment sale
Interest-in-real-estate
Joint tenancy
Joint venture
Judgment
Judgment clause
Land
Lease
Leasehold estate
Lessee
Lessor 
Lessor, Landlord, Property Owner
Letter of Intent (LOI)
Lien
Listing 
Listing Agreement
Loan
Management Agreement
Market price
Market value 
Market/data approach
Memorandum of Understanding (MOU)
Mortgage
Mortgage lien
Multi-Family
Multiple Listing Service (MLS)
Negligence
Net Income
Net lease
Net operating income
Non Disclosure Agreement (NDA)
Notary public
Novation
Open listing
Open Listing Agreement
Option
Ownership
Partnership
Power of attorney
Preliminary Deposit
Premises
Prepayment clause
Prepayment penalty
Priority
Property
Property Investment
Property management
Property Tax
Quota Letter
“Ready, willing, and able” 
Real estate
Real Estate Broker
Real Estate Property
Real Estate Purchase/Sale Agreement
REALTOR®
Rent
Rent schedule
Replacement cost
Resale
Residential 
Rights Over Leasehold Asset
Sales contract
Salesperson
Short sale / Fire Sale
Single Family
Specific Business Tax 
Spouse Consent

Stamp Duty
Subletting
Substitution
Survey
Tenant
Termination (lease)
Termination of listing
The original amount
The Terms “Agent” and “Broker” 
Title
Title Deed
Title Insurance
Transfer Fee
Value
Viewing Form
Withholding Tax
Yield
Zoning