Belt Auction

How do real estate agents make their money when they sell properties under a realtor company (like Century 21?

Public Comments

1. They get a commision on the sale
2. they get paid out of the prioceeds of the house sale their commission is sent to, say Century 21 by the lawyer or who ever is dispursing the funds from the sale of the home, Centruy 21 would take their share ( as agreed to by the realitor in their agreement to work under the Centruy 21 baner) and the rest is frowarded to the agent
3. Commission
4. Realtors have to sell and be paid through a broker, like a Century 21. They will yield whatever commission they've contracted for; typically 3% of the sale price of the property. The broker will deduct any fees they charge from that commission check and cut a check to the agent after that.
5. In California, Real Estate commissions are negotiable. The listing agent (person who has the sign is in the yard) decides a percentage with the seller, usually between 4-7% depending on your location and agency. The listing agent typically splits the commission with the agent who brings the buyer. So if 6% was negotiated, 3% would go to the buyer's agent, and 3% to the seller's agent. Here's where people get confused...the money is not actually going to the AGENT directly, its going to the agency (aka Century 21). Each agency takes a cut from its agents, and the cut they take is negotiated between the agent and the broker when the agent signs on with the company. (Did you know agents are not actually "hired"? Most are 1099 contractors!) Experienced agents get a smaller chunk taken, while newer agents sometimes only get 25-50% of that 3% you think they are getting. Each agency is different - ask your agent and they should be happy to explain it to you. Angie Weeks www.AskAngie.com