How Real Estate Agents Get Paid

Real estate commissions often raise questions for sellers, who wonder about the value they receive for the fees paid to agents. Understanding how commissions work provides clarity on their role in real estate transactions.

When listing with an agent, commissions typically follow a standard structure:

Buyer’s Agent Commission: In a 6% commission scenario, 3% is allocated to the buyer’s agent who brings a qualified buyer. This incentivizes agents to show your property to potential buyers. While the recent NAR settlement may change this structure in the future, this is how things work in our current market.

Listing Agent’s Commission: The remaining 3% covers the listing agent’s services. After expenses like taxes, operating costs, marketing fees, and legal expenses are deducted, the listing agent’s net earnings may be around 1-1.5% of the sale price. For instance, on a $300,000 home, the listing agent might earn approximately $3,000 post-expenses.

“Real estate agents offer significant benefits, such as their expertise in pricing and dealing with transactions.”

Expenses and Taxes: A portion of the commission goes to taxes, while the rest covers expenses incurred during the selling process, such as marketing and legal costs.

Real estate agents offer more significant benefits, such as their expertise in pricing and dealing with transactions, while also expanding your property’s visibility to potential buyers through their network. They save time by handling marketing and negotiations, and offer guidance on pricing and strategies.

At our agency, we prioritize transparency and efficiency. We only charge commissions upon a successful sale, aligning our incentives with yours. Whether by call, text, or email, we’re ready to start the process of selling your property seamlessly.