i know they get paid by each house they sell, but how does it work?
2007-06-12 09:57:26 · 10 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
They make 3-7% of each sale.
So if they sell a home for $100,000.oo they receive aprox.
$3 - 7,000.oo. depending on the realty company they work for.
2007-06-12 10:01:31 · answer #1 · answered by smurfee68 5 · 0⤊ 0⤋
With a very few exceptions, the realtor's commission is paid by the seller as a percentage of the sales price. Therefore, the real estate agent works for the seller, not the buyer. The amount of the commssion is totally a matter of negotiation and in our area (East Coast), ranges from 3% to 7%. The selling broker himself/herself, usually has to split the commission with the broker who brings in the buyers and in addition will split the commission with their office. So the broker may only end up with 1 or 2%.
2007-06-12 10:08:41 · answer #2 · answered by squeezie_1999 7 · 1⤊ 0⤋
In the long term, Lawyers do make greater than Realtors, most likely. A "few" Realtors do as good. However, due to the fact they paintings by means of the hour, a legal professional's costs in helping with truly property purchases, will probably be a long way not up to a Realtor. In promoting a trade and truly property I have paid approximately $two,000.00 to a legal professional, in which a Realtor could have charged $15,000.00
2016-09-05 14:13:35 · answer #3 · answered by sather 4 · 0⤊ 0⤋
It will depend on your commision split with your broker. Average commision for a house is 6% which is to be shared between the 2 brokers (Buyer and Seller). Then the broker will pay the agent his/her commision let say 50% of the brokers commision minus all the desk fees and insurance.
Let say a home is priced at $100,000. Buyer's Broker is Century 21 and Sellers Broker is Remax. With 6% ($6,000)commision split between the 2 brokers they will both get $3,000. Now let say the agent that works for the broker has a contract agreement of 50/50 minus total desk fee of $500 per transaction. Then the real estate agent will get half of the $3000 which is $1,500 minus the $500 desk fee. Final commision for the $100,000 home is $1,000.
Remember that a Real Estate Agent needs to work and split commision with the broker so, the 6% commision is basically split into 4 not 2 that most are saying.
2007-06-12 10:23:32 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Realtors typically get a percentage of the selling price, usually in the 5% to 7% range. If there are realtors for both parties, then the commission is split, and then each realtor forks over a big chunk to their office to cover overhead expenses. I would be surprised if a realtor keeps more than 50%-60% of their share.
So, if a house sells for $300,000 and the negotiated commission is 6%, then the realtor(s) get $18,000 and the seller gets $282,000. The $18,000 is shared by the realtor(s) and their office(s).
You can see why FSBO (For Sale By Owner) is a growing segment of the realty business. I sold my last house by myself and saved over $6,000!!
2007-06-12 10:07:04 · answer #5 · answered by NHMike 3 · 0⤊ 1⤋
They receive a commission based on a percentage of the price of the house when they sell it. This is usually around 6% of the sale price. So, for instance, on the sale of a $100,000.00 house, the realtor would get $6,000.00. HOWEVER, sometimes the commission has to be split between two realtors, the one that listed the property for sale and the one that actually found a buyer for it (that could be the same person, but often it is not.)
2007-06-12 09:59:07 · answer #6 · answered by MOM KNOWS EVERYTHING 7 · 1⤊ 1⤋
It depends really....
It depends on houses sold, the price of each house sold, commission rate, what the commission split is with your broker, which area you are in. And much more. I've heard the average for a Real Estate agent is $30-40k. Of course this includes all of the agents that only do it part time for a little extra cash and full time agents, so it's not really a good figure to base the salary of a full time real estate agent.
2007-06-12 10:01:30 · answer #7 · answered by bshmalb 2 · 0⤊ 1⤋
I believe the Real Estate commission on a home sale is 7%. The agent who sold the house and the agent who listed the house split the commission 50/50. So each one would get 3.5%. The commission is negotiable but 7% is the standard figure.
Sales commission on a house that sells for $100,000.00 would be around $3500.00
2007-06-12 10:05:01 · answer #8 · answered by mccoyblues 7 · 0⤊ 1⤋
Usually the selling agent and the buyer's agent split the commission. The commission is usually 6 to 7 percent of the house's selling price. Frequently the agent's office gets some of the fee.
2007-06-12 10:01:05 · answer #9 · answered by hottotrot1_usa 7 · 0⤊ 1⤋
About 6.5 percent of the selling price of the property.
2007-06-12 10:00:03 · answer #10 · answered by MAD MOMMA 3 · 0⤊ 1⤋