Belt Auction

How do real estate agents get paid?

Just wanted to know how real estate agents get paid, and an example would be good. For example, how much they would make from selling a $500k house, and why. Thanks.

Public Comments

1. They get paid only when they sell a house They would get typically 6% of the 500k if they were the only realtor involved in the transaction, otherwise, it is usually a 50/50 split and they would get 3% or maybe even less depending on the deal. Realtors are strictly on a commission only basis. Sell no houses, get no paycheck.
2. It's a commission based on renegotiated arrangement with the seller. The commission is taken from the sellers proceeds at settlement. The typical commission is 6%. Provided there was no other realtor participating, that would be $30,000.
3. commissions only. Most cases it is a split commission. Rates vary by state. In TN the listing gets 3% and the selling gets 3% and both are less the brokers cut. So the selling agent and broker dived $15000 based on their agreed splits
4. In any real estate transaction there is the listing agent (the one representing the seller of the home) and the buyer's agent (representing the buyer). They can be one person or two different people. Generally, the listing agent gets over half of the commission and the buyer's agent gets less than half. The agents then have to give a cut to their agency, the company they work for. These days the average commission totals about 6%. On a $500,000 house the listing agent will get maybe $20,000 and have to give some of that to their company. The agent for the buyer gets maybe $10,000 and has to give part of that to their company. These are examples, different parts of the country do things differently.
5. The commission is usually between 5 and 6%. This gets split between the seller's broker and his sales person, and the lister's broker and his sales person.