[quote=sdrealtor]Lots of agents (myself included) hire a transaction coordinator to manage the actual file when the property is in escrow. Its usually 300 to 500 for a transaction coordinator. Some agents make the client pay it. Most (myself included) pay it out of their commission or do it themselves. So to answer your question, it wouldnt add to his commission income.[/quote]
I’m sorry, but that does not exactly compute.. I also said effective commission. The math doesn’t seem to work. Somehow, giving same commission rate on same property, paying the $300 to $500 out of commission seems to come up with less than directly charging the client. On the other hand, you might charge a 2.7% instead of 2.5% commission and pay the $300 to $500 yourself out of commission and get the same net as if you had directly charged the $300 to $500 and had a 2.5% commission.
–thereby, charging the $300 to $500 as a separate charge effectively increases the commission (without looking like it) because it removes a charge that might normally be covered under the commission, to a separate line item.
