How does Real Estate Commissions Work?
2007-03-22 10:18:10 · 8 answers · asked by vasilij 1 in Business & Finance ➔ Renting & Real Estate
When you close the deal, part of the down payment goes to the Agent, their commission, usually about 6% of the purchase price
2007-03-22 10:22:40 · answer #1 · answered by DAD_to_3 3 · 0⤊ 0⤋
Usually a real estate agent is paid out of the money that the seller receives. Traditionally, the real estate commissions are a percentage (the percentage varies by market) of the final sale price. There are two sides (buyer and seller) to a real estate deal and two sides to the commission as well. The buying and selling real estate brokers split the commission. The broker keeps a portion and then pays the agent a percentage (usually the better performance of the agent, the higher the percentage).
Just because this is the traditional method, it is by no means the only way things are done. The agent is paid as is arranged by contract with either the buyer or seller. Sometimes agents receive a fixed dollar amount regardless of sale price, or any of many variations. Therefore a buyer or seller of real estate can set there own terms if they can find an agent willing to work with them.
2007-03-22 18:43:42 · answer #2 · answered by Dave B 2 · 0⤊ 0⤋
A listing on the MLS typically includes a 6-7% realtor commision. The commision is paid at closing to the agent(s) involved-- if there is a buyer's and a seller's agent, they split it.
So a buyer's agent gets 3% at closing-- however they must also split it with their broker per their agency agreement..... some are 50/50, 60/40, or 70/30....so the agents dont walk away with all 3% by any means!!
2007-03-22 18:28:39 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I recommend that you find a Real Estate school in the city where you live. You will get valuable information by joining a Real Estate Class. (Look in the Yellow Pages or look online for Real Estate Schools)
2007-03-22 17:26:36 · answer #4 · answered by newyorkgal71 7 · 0⤊ 0⤋
A real estate agent gets paid at the close of escrow by the title company who is in charge of disbursing all funds.
2007-03-22 18:04:32 · answer #5 · answered by steve h 2 · 0⤊ 0⤋
Agents are paid a percentage of the sales price from the proceeds of sale due the seller. From their percentage is deducted the amount due any other Realtor who brought the buyer to the transaction, their advertising and marketing costs, and the percentage they have to pay their Broker.
2007-03-22 17:22:49 · answer #6 · answered by mazziatplay 5 · 2⤊ 0⤋
usuallly by percentage of the commssion chanred to the
seller:
25% listing office
25% selling office
25% listting agent
25% selling agent
that's the most honet setup, but some brokers are thieve
2007-03-22 18:21:17 · answer #7 · answered by Anonymous · 0⤊ 0⤋
in philippines its only 2% ... per sale .. but it will change when you have done more and more sales
2007-03-25 01:53:47 · answer #8 · answered by Anonymous · 0⤊ 0⤋