How Does The Realtor Get Paid

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Most real estate agents are paid a commission based on the sale price of a property and split between the agents and brokers involved.

Paul Bradbury / Getty Images Very few real estate agents work on salary and if they do, you probably don’t want them. Most real estate agents are paid a commission.If an agent does not close a transaction, she does not get paid.

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If you purchase a house, your Realtor will get a percentage of the price you paid from the seller. It typically costs a seller 6% of the price the house sold for to pay for the Realtor(s). The seller’s Realtor would get 3% and the buyers Realtor would get 3%. So in actuallity, you do not pay the realtor if you are the buyer.

How much is real estate commission? typically, real estate commission is 5%-6% of the home’s sale price. In most areas the buyer’s agent receives 2.5%-3% in commission and the seller’s agent receives 2.5%-3% in commission.

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Seller Pays the Buyer’s Commission. Under a Buyer’s Broker arrangement, the named brokerage and agent represent the buyer. The fee paid to the broker most commonly is paid by the seller. Some buyer broker agreements contain clauses that will compensate the brokerage for the fee it is due less the amount paid by the seller.

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How realtors get paid may surprise you. Especially if you’re considering buying a home. Hiring A Realtor is Step #2 in our New Home Buyers Guide.