How Do Real Estate Agents Get Paid?

Real Estate Agents are paid only from the commission of a sale. A person interested in selling their home contacts a Real Estate Agent to establish a price and to begin the process of selling their home by creating a listing contract for an definite period of time. Once the home is sold, at closing, the seller pays a percentage of the total sales price to the agent. If the home does not sell, then the agent does not get paid. The average commission is 5-7%. The commission percentage is agreed upon by the seller and their agent in the listing contract. The 5-7% commission is then split between the listing agent and the buyer’s agent. The split is usually 50-50.

How the commission is divided.

Your agent will insure an easy process by scheduling all appointments and keeping deadlines, some that may occur over several weeks. As a buyer looking for a home, you should find a Realtor® that you like and work with them exclusively to find a home. This will make the process easier and allow that agent to represent your best interest. An agent’s job is to get a seller the most amount of money for their home and the buyer the most amount of home for their money.

*Agent Expenses: Training, License fees, MLS Dues, National & Local Realtor® Dues, Desk fees, Cell Phone, Computer, Photography/software, Internet access, Signs and lock boxes, Self-employment taxes, Insurance, Vehicle maintenance/Gas or mileage deduction, Printing/promotional materials, Office supplies, thank you gifts and more. Also, No Benefits – sick days, paid vacations, 401k, etc.

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