How Do Real Estate Agents Get Paid?
The short answer: by a commission based on the home’s final sales price, usually paid by the seller, but the commission is always negotiable. The agent selling the home (otherwise known as the listing agent) and the homeowner will enter into a listing agreement which identifies the total commission. In turn, the listing agent will give some of their commission to the agent representing the buyer upon conclusion of the sale.
For example, say you are the homeowner and your real estate agent charges a 6% commission to sell your $300,000 home. At the end of the sale your agent will split his 6% commission with the buyer’s agent, effectively leaving your real estate agent with a 3% commission totaling $9,000. From there your real estate agent must share a percentage of the $9,000 with his Broker.
Real estate agent Adam Garcia helps buyers achieve homeownership and sellers profit from their real estate investment. Based in Sacramento, Adam represents clients in residential real estate transactions from start to finish with the goal of making the process as smooth as possible. For sellers that begins with assistance in establishing a list price followed by marketing the property with a focus on internet advertising. For buyers representation begins with gaining access to potential properties with the understanding that buying the right home in the present market often requires quick access to new listings.