What's the normal commission percentage for a real estate sales rep?

Question

I'm just wondering what's the average commission percentage for a sales rep will be? Is 20% of companys commission too much or too little?
Any input would be much appreciated!

Answer 1

There is no normal commission or percentage for a agent. The commission is negotiable in all instances.

Your questions appears to be what is given an agent through the broker as oppose to what is charged.

As an agent you and the broker sign an agreement as to what percentage you will receive for selling a house through his/her brokerage firm.

That percentage will normally depend on your experience and how much time the broker has to spend with you. Each broker has in their mind that percentage they are willing to give to a person that has just receive a license and has never sold a house.

Some start out at 25% while others start out at 50% of what they bring into the brokerage firm.

Your broker will talk to you about what his/her agency normall charge their clients and what you can expect of that commission.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 2

2-6% depending if acting as a buyers or sellers agent. A listing will charge 4-6% to list home. Typically a buyers agent gets 2-3% usually half of what a listing agent has charged the seller(this is for residential RE over $100K). Everything is always negotiable. All you have to do is ask the agent your working with, they will know before showing you a home, remember if you don't ask you stay hungry and it's your money. Always get in writing if you want a % of the agents commission. I will contribute up to 30% (depends on sales price) of my commission, if I am asked and if it is needed to close the transaction. I am a Realtor in WA state

Answer 3

-EDIT- Just realized I didn't answer the question you were asking. I'll leave it, just in case you find the info I did give you useful. 20% would be very, very low if you are generating your own business. If they're sitting you in a development and the buyers are coming to you, that's probably more than fair.
-Answer to the question you didn't ask-
It depends on where you are. In Illinois, for example, the customary percentage is 6% (and this is pretty standard). However, in the actual city of Chicago the customary percentage is 5% both due to competition and the average home sale amount. In places like New York City where homes commonly sell in the seven figures I have heard of 2 and 3%. 6% of 100,000 is $6000. 3% of $1,200,000 is $36,000. That's why.

Answer 4

TheTruthAboutMortgages did an fabulous activity answering you question. I additionally wanted to indicate out a lot of human beings get at a loss for words and picture the clientele can shop funds by utilising going rapidly to the itemizing agent. The clientele are no longer saving funds via fact the fee keeps to be the comparable, the itemizing agent would not could desire to proportion the fee with a customer's agent. additionally, sellers could desire to ask their agent while signing the itemizing contract how the fee would be split between itemizing agent and customer's agent. If the fee is 6% will the split be 3% and 3% or will the agent supply out greater advantageous to make the valuables greater eye-catching to customer's brokers or is the itemizing agent attempting to maintain an more advantageous proportion for herself/himself. And what if the itemizing agent finally end up representing the shopper too? Will the fee be decreased or is the itemizing agent basically retaining the completed volume via fact they're representing the two customer and employer? basically one thing i needed to characteristic to TheTruthAboutMortgages's super answer. certainly some thing for clientele and sellers to keep in mind while paying for and advertising authentic assets.

Answer 5

As I read your question, it appears you are asking about negotiating your commission split with your broker.

Everything is negotiable, but every situation is different.

Most newbies start at a 50/50 split, and stair step up according to their broker's policy. Ask for it in writing when you interview.

If you have something solid to offer - a history of success in real estate, for example or an impressive contact base - negotiate more.

If you are paying desk fees and other office charges, ask for a higher percentage, because your broker is already making $$ from you whether you sell or not.

20% is REALLY LOW in my opinion, even for a newbie. Ask for at least 50%.

Good luck and best wishes.

Answer 6

All Real Estate Agents Sales commissions are negotiable.

Answer 7

They get 6% of the sale when they get it, but have to share it with whoever is the broker....