11/15/2023
"How do agents get paid?" I've heard that question so many times. This video is very informative!
For those that think I get the whole commission when a property sells, it is actually split with the other agent.
Example:
A house sells for $250k, and in the listing agreement the commission is 6% of the total sales price (this percentage is negotiable, however, for homes it typically ranges from 4-6%).
6% = $15,000
That $15k is split between buying and listing agents. The listing agreement details how it is split, but it is usually 50/50, or in this case 3%/3%. It can be changed to where agents that aren't in the listing MLS get a smaller portion.
At this point, both agents (actually it would be the brokerage in my case) gets $7,500.
From there, that number usually changes depending on the real estate firm. It seems every agency has their own split, but they can range from a 100% commission (all $7500), to a 70/30 split (70% to the agent, 30% to the brokerage).
In case you've ever wondered how it works, here ya go! 🤓
Ever wonder how real estate agents are paid for their services? We explain the process. Here are some takeaways: Compensation is always negotiable. At the st...
