A1 Realty.Com

Owner And Broker

A1 Realty.Com

probably on a commission split with his own broker as well.

Here is the important thing to remember:

In almost every case, the entire real estate commission is being paid by the seller. That is true even if the buyer has signed a buyer brokerage agreement with an agent. As long as the payment structure is fully disclosed and everyone agrees, the seller can pay for all the real estate commissions involved in almost any transaction.

It is unlikely that a buyer would ever be called upon to pay any portion of a real estate commission.

So, to give you a typical example:

You decide you want to buy a house. You hire Susie at ABC Realty to represent you in the purchase of your next home. She finds a really cute house currently listed with Joe at XYZ Realty. You make an offer of $100,000 and it is accepted by the seller. Typically, the money would flow like this: At closing, Mr. Seller has a commission of $6,000 deducted from his proceeds. Half that goes to ABC Realty, while half goes to XYZ Realty. Because Susie is a top-selling agent, she gets 80% of the $3,000 commission she generated, totaling $2,400. ABC Realty gets the other $600. On the listing side of the transaction, Joe is a new agent and this is his first sale. He gets half and his broker gets half. Obviously, as agents gain experience, they try to negotiate a higher commission split with their brokers. In a nutshell, that’s how agents get paid.