How to Pay the Real Estate Agent


When it comes to buying or selling a home, many people are unaware of how real

estate agents get paid. It’s important to understand how a commission works in

order to make the most informed decision about hiring an agent and the services

they can provide for you.


Most real estate agents work on commission, meaning they are paid a percentage of

the sale price of a property. This percentage is usually negotiated upfront and will be

detailed in the listing contract. Typically, it is the seller who pays the commission,

though the buyer may also choose to pay a portion of it. In some cases, a fee can be

negotiated where the agent is paid a flat fee and does not receive a share of the

sales proceeds.


It is important to note that despite being paid on commission, real estate agents

have expenses just like any other business. They may have to pay a business

license, office fees, and even invest in marketing materials. They also do not receive

a salary or weekly paycheck like an employee of a company, so they must budget

for these costs.


As a result, real estate agents often have a very high rate of turnover, meaning that

they can be in and out of the business at a fast pace. Because of this, it is important

for both buyers and sellers to find an agent they trust and can work with over a long

period of time.For more info


The way a commission works is that once the deal is closed, the agent’s brokerage

will receive a check for a certain amount of money (typically between 5 – 6%). This

money is then split between the agent and any other broker involved in the

transaction, such as a buyer’s agent. In this example, the brokerage would receive a

check for $15,000 and then would split that payment evenly between the agents

involved with the deal.


There are some exceptions to this general rule, however, where a real estate agent

may be compensated on a salary basis instead of by commission. This is more

common for agents who are part of large brokerages or for those that have a lot of



While some agents will offer to represent buyers on a fee basis, this is typically only

offered by brokerages that are willing to take on the financial risk of working without

a commission structure. For most agents, working on commission is the only way

they can survive in the industry.


There is a lot of room for negotiation when it comes to how much of a commission

an agent will get. It is important for sellers to understand this before they work with

an agent so that they can negotiate a lower commission. This can be done by

detailing what services and value they will provide in exchange for a lower cut of the

sale proceeds. In addition, market conditions can also play a role in how much of a

commission an agent will take home.