How do Real Estate Agents get paid?

Navigating Transactions

March 1, 2024

Hey, real estate agents! Today, let’s dive into the slightly taboo realm of Realtor compensation. Because, let’s be honest, who doesn’t want to know more about the green stuff? 💸

1. Who foots the bill for the agent(s)?
In the grand dance of real estate transactions, it’s the seller who typically takes the financial lead. The agent’s commission is, more often than not, derived from the sale proceeds, not the buyer’s wallet. This commission usually hovers between 4-6%, and the math magic happens when the deal is sealed.

2. How’s the commission cake divided?
Once the commission cake is baked, it gets sliced between the buyer’s agent and the seller’s agent. Picture this: A home sells for $300,000 at a 6% commission. The total commission would be a sweet $18,000. If it’s a fair 50/50 split, both agents snag $9,000 each (and yes, this is pre-broker fees).

3. How does an agent earn their commission?
Sellers, your agent is the unsung hero working behind the scenes, enhancing your home’s value, setting the right price, and orchestrating a marketing symphony to attract eager buyers. Buyers, your agent is the Sherlock Holmes of house hunting, ferreting out the perfect abode, crafting and submitting offers, and haggling for the best possible deals on your behalf.

4. What about the brokerage’s piece of the pie?
Agents share the bounty with the brokerage that houses their license. This split is typically outlined in the agent’s contract with the brokerage. It’s like a team effort where everyone gets a slice (and yes, paperwork can be a slice too many).

Feeling overwhelmed by the paperwork tango?

We’ve got your back! Let’s chat – schedule an appointment or swing by our website for a detailed breakdown and pricing. ✨ And, of course, don’t let this insider info slip through the cracks; save this post and stay ahead in the real estate game. 📈

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