How Do I Pay the Real Estate Agent?


When you sell a home, the real estate agent is paid a commission payment. This

amount is typically a percentage of the home’s sales price. This means that a sale of

a $300,000 home would produce a commission check of $55,000 to the realtor.

However, the total commission payment rarely goes to just one agent. In fact, the

commission check is usually split among many agents, and there is often a great

deal of variation in how this is done.

Most real estate agents are employed by brokerage companies that have their own

offices and hire other licensed real estate agents to work with them. In addition to

the agent’s salary, brokerage companies often charge for advertising, MLS fees, and

other expenses associated with real estate sales. These expenses can add up to a

significant amount of money.

In order to make the most money possible from a home sale, agents should try to

negotiate with their broker for higher commission payments. These larger payments

can allow the agent to pay for a more expensive office and other necessary

expenses. It is also important to consider the competition in a given market when

trying to negotiate a high commission rate. If there are a lot of competing agencies

in a given market, the agent may have to offer a very large commission to stand out

from the crowd and attract buyers. Also read


The vast majority of home sales are completed by a real estate agent who works

with a buyer’s broker to find and close on a property. In this scenario, the seller’s

agent will typically agree to a commission split with the buyer’s broker and the total

commission payment is reflected in the home’s sales price. The exact percentage of

the commission is typically negotiated upfront and will be detailed in the agent’s

initial contract with the seller.


This is not to say that a seller’s agent cannot negotiate with the buyer to reduce

their commission payment, but it is important to understand the overall process

before beginning negotiations. It is also important to note that the commission

payment is separate from the closing costs that are charged by lenders. Closing

costs are an assortment of fees that must be paid in order to close on a property.


How Do I Pay the Real Estate Agent?

As a general rule, you must pay the real estate agent their full commission if they

find you a buyer and close on your home. However, this doesn’t mean that you can’t

negotiate with the real estate agent to lower their commission if they are not doing a

good job for you. Ultimately, you want to work with a real estate agent that you trust

and are confident in their ability to sell your home. If you do not feel that your agent

is meeting this standard, then it might be time to look for a new real estate agent.

Similarly, if an agent has a strong track record and you are willing to pay a premium

for their services, then they may be worth the higher commission.