I just pass my real estate exam. How much commission % should I get for helping a seller or buyer?

Question

How do I know which broker to sign up with, in order for me to practice my real estate? I want a broker which will pay me my fair share when I help a client buy or sell a property. What is the typical commission percentage I should ask for from a broker?

Lots of questions but I am confused.. thank you

Answer 1

no problem.

This is how it works. If you list a property or find a property for a buyer, you typically get anywhere from 1%-3% of the purchase or list price. Lets assume you found a 100k property for a buyer, and your commission was 3%. You just got $3000. Now you must split that $3000 with your broker. That can range from 60/40, 70/30, 80/20, 90/10 and even 100% (for a transaction fee). Usually, if you're new, you might have to give up 30% percent of your commission to your broker. So you have to give your broker $900 and you pocket $2100.

If you're in SoCal, contact me.

Regards

Answer 2

I guess laws vary greatly from state to state. I am from Michigan. You don't ever touch your license here. When you pass the board you have to already have a broker for them to mail your license to. If you don't have a broker, you do not use your license.

You don't set the commission you want, your broker does. If you have a listing broker and a selling broker and you sell a house, this is what happens. The two brokers split the commission equally between the two offices. Then you and your broker split it
again and that is what you get paid.
Remember they don't take any taxes out of commission checks. It is a good thing to file income tax quarterly. You will also have to secure your own health insurance. Your broker should be responsible for any fees or things like that. You will a tax person that knows real estate to do your taxes. You can write off office space at home, part of your car, your cell phone, etc. You will need to claim all you can.

Hope this helps you think things out. Real Estate is a cut throat business. You work nights, week ends, holidays. You work on a deal for six months and get to the closing table and it falls apart in five minutes. I left real estate and went into apartment property management, which I liked much better.......

Answer 3

I'm wondering what state you are from. How did you pass the exam without knowing these things? They should have been on the exam. In Ohio the commission is 6%, but I have negotiated for a lower commission under the table (not legal in Ohio) to buy/sell on two different occasions. If you are working with a broker, you should get a cut of the commission when you're apprenticing. Don't worry about how much that is, just learn to do a good job and then get out there on your own.

Answer 4

It depends on the selling price of the property, but in general any more than 2-3% is a ripoff. I sold a house 2 years ago for $400k and the commission was 1.5% I figure I got lucky.

Answer 5

it depends which state you are liscensed in but it is somewhere around 6% for the entire transaction. 3 % to the listing agent and 3% to the buying agent. then you split with your broker at what ever rate you have negotiated.

Answer 6

I have a counsin that does real estate and from what I know remax is 5-6%

Answer 7

well as a beginer you are not going to make alot of money cause u have to pay alot of dues at the start.... your comission rates are determined by your firm but feel free to negotiate your money.... it depends on where u want to work banks usually are good places to start in real estate and who is willing to hire you... you have to be aggressive with what you are doing now esp if you are trying to get a job....

Answer 8

I'm amazed, all that trouble to pass an exam and you don't have a clue do you!

Answer 9

You passed the test, and you don't know that? Oh brother!

Answer 10

wasn t that on the test