i have a question about relestate agents......?

Question

i know they make 6% of each house sold in total.

so lets say they sell a house for 900,000

after all the expenses (broker fees, listing agent fee, etc)

how much of that 6% will he get?? how much money after all the fees are payed will he have at the end of the deal for himself?

Answer 1

Don't look at the money per deal. Just do as many deals as possible. The money will follow real fast.

Answer 2

Commissions are almost always split among several parties.

Agents all must work for a broker unless they have a broker's license in their own right. Normally the total commission is split evenly between the listing broker and the selling broker. The agreement that the broker has with their agent determines how much the agent will receive though 50% of the broker's share is pretty common.

On a $900,000 sale at 6% the total commission would be $45,000. The listing and selling brokers would each receive $22,500 and would pay their agents according to whatever agreement that was in place between the broker and agent.

Answer 3

Ok first we don't always make 6%. Commissions are negotiable. Ok let's give you a breakdown
The listing commission could be split 45/55 with a coop broker. Then the listing agents broker takes 55/45, and from th 45% the company takes advertising expense, office space expenses, etc. Then comes Income tax and consider the income bracket they might be in, then personal expenses. So if the house sold for $900,000 we would gross $13,365 then all the expenses come from that. We may net $3341.25.

It sounds like we make alot of money, but most of us don't.

Answer 4

Well the first guys math is off. 6% of 900k is 54k. Anyway, that is most likely split between two agencies, buyers and sellers. So that makes 27k going to each office. from there the agents are on a split with the office, which varies from office to office. I get 95% of commissions so I would recieve 25,650. Then of course we have to pay taxes but who doesnt. Now some offices are a 50/50 split or less so they could get around 13k or so.