FOXmls.com: May 16, 2012

When Does a More Expensive Home Cost Less?

Published: May 16, 2012

While it may seem counterintuitive, it's true; purchasing a more expensive home in an urban neighborhood could actually wind up costing you less than a home with a smaller price tag in the suburbs.

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When a property is listed for sale with a real estate agent ("Listing Agent"), the Listing Agent historically offers a 3.0% commission to the real estate agent ("Buyer's Agent") who procures the buyer.

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SELLER
PAYS 6%
COMMISSION

Commissions

are split...

3% TO
LISTING
AGENT

3% TO
BUYER
AGENT

Any commission over
1.5% is shared with
you, the Buyer.

1.5% TO YOU
HOME BUYER

1.5% TO US
BUYER AGENT

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