How much does a real estate broker make from a sale?

Answer 1

I assume you are not in the real estate business.

Our earnrings are dependent upon a number of things, like the gross commission, the house split, and the cost of operating their busines.

Websites cost money to develop, design, maintain, and update- I wonder who people think does that, if they realize it is not free? They are in fact paid using revenues from commissions received. The cost to operate a car at $3.00 per gallon for fuel, the cost to insure, the cost to buy the vehicle, and maintenance is not cheap. Other costs include errors and emmissions insurance, cost to maintain a computer base, cost of computers, buildings to meet clients and its furnishings, cost to keep records according to the state of licensing, the MLS services (which with a Realtor is the greatest way to look for real property), cost of education (yes it takes knowledge to go thru the process), licensing fees, taxes both personal and real property.

There is a gross misconception that all we do is ride around in Cadillacs and show houses. This is far from the truth. The average real estate licensee earns about $44,000 annually, selling an average of 14 homes. People from the health care or teaching industries seem to do well in real estate. While there are cut-rate companies out there is is unrealistic to expect to save a ton of money using a minimal service company. You will pay in the form of lost market time and additional payments on the house you want to sell or lost opportunities. Most "discount" brokerages I have known went under within 18-24 months, while some made it to 36 months. The internet has helped those of us in the business to be more efficient and speed the home buying process for all.

Many of us are Realtors, members of the National Association of Realtors. We many times end up as financial or family councelors, helping people through difficult times. We help people locate jobs or the special home they always wanted. We volunteer to build houses (Habitat for Humanity), volunteer to host homeless shelters like Room in the Inn (yes I've hosted a few), and are members of fine clubs such as the Rotary (my personal choice), Jaycees, Lions, and more. We fight to keep the tax deductibility of home mortgage interest and improvements in FHA/VA home loan programs, thereby helping more people than ever buy homes. We raise money to help people who suffer unfortunate emergencies. We attend church, participate in school events and help improve neighborhoods. We're seen at Wal-Mart, restaurants, movie theaters, walking down the street, at day care centers, football, basketball, baseball and soccer games and other places.

We do the best we can to make the selling or buying experience smooth and pleasant for all involved. We help write letters to clear up credit report issues, and explain the terms contained in sale and purchase agreements using terms easily understood. We do all we can to see that everybody gets a chance to own the American Dream: their own home. Some of us volunteer to teach at local schools or speak as guests speakers at the local college for free.

There are some things that you can not put monetary values on: the sarisfaction of a job well done; the smile on a person's face that bought a home who 3 yrs earlier was unemployed and homeless; the joy of a child who now has their own back yard to play in, the contentment that comes an elderly person having one more chance to have that flower or veggie garden in a yard of their own. We help people contest excess taxation on their homes with no compensation for doing it.

There are a number of sayings in the business world: you do get what you pay for, there are no free lunches, somebody has to pay.

I am a Realtor, a professional and pleased to be counted among their numbers.

Answer 2

A broker generally makes 25% to 50% of the commission of either the listing agent, the selling agent or both if it stays in the same office. It is normally an agreement between the agent and broker. The agent will agree to sell your home for 6% of the purchase price (this varies from area to area and the price of the home, homes over $1 million usually have a fee breakdown) and out of that they pay 3% tp the selling agent and split the remainder with the broker they work for. Worst case scenario is that they have 1.5% afterwards and out of that they have to pay advertising costs, taxes and themselves. That is generally why most agents do not want to go below 6%, they are not left with too much at the end. Some agents or "discount brokers" will charge you 3-4%, beware of this. Most of the time this is what is known as an "in-house" or "pocket listing", meaning that they will do minor advertising or limited paperwork, not listing the property on the local MLS, and hoping to sell it to one of their clients that is already looking. That way they can collect the entire commission themselves. The problem with this is limited exposure for your home and most of the time hidden fees that end up costing you more than what you would have spent with a traditional arrangement. Your best bet is to chose a reputable company in your area and write off what you can from the commission cost. Check with your CPA and negotiate with the agent, that is what they know will happen anyways.

Answer 3

3% for the seller, and 3% for the buyer agent is often the base, but in some areas there is so much competition for real estate brokers that they cut their commission in order to get more business. Sometimes as low as 1%. It is a tough competitive business. Brokers often want to be the sellers of the homes these days cause that gives them a better chance at the commission because nowadays people find their homes on the Internet rather then through a broker.
Good Luck.

Answer 4

All real estate fee's in CA are negotiable as most states in the US. The Broker and agent will split the fee based on a written contract between the two of them.

Answer 5

Broker / Agent usually makes 6% total residential, 10 % commercial, but out of that he pays his agents either 3 % listing fee or 3% sales commission, but these deals are old and traditional, they may have changed !

Answer 6

For Credit and finance solutions I visit this website where you can find all the solutions. http://SMARTFINANCESOLUTIONS.NET/index.html?src=PTxEzq44Gta

RE :How much does a real estate broker make from a sale?
1 following 11 answers

Answer 7

1

Answer 8

7% that is what it is in my area
3% listing agent
3% selling agent
and 1% to the agents Realtor office. Could be 1/2% to each office if there are from different offices. Line Coldwell and Century 21 for example.

Answer 9

Usually under 7% as this allows them bargaining power without having to go back to the owner, but few are willing to cut their % by less than 3 to 6% - depends on the area and the demand.

Answer 10

Six percent unless negotiated otherwise which the vast majority of buyers never do and are looked at with wonder if they do in fact question the rate.