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What is your salary per hour?
I have a question for real estate agent.
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How much money you make as a real estate agent depends on the commission you split with your sponsoring broker. Most real estate agents are paid through commissions. A single commission is usually split four ways—between the agent and the broker for the seller and the agent and the broker for the buyer. The commission split depends on the agreement you have with your sponsoring broker.
First, let's address the basics of a real estate deal. The relationship between agents and brokers helps explain how real estate agents are paid. Real estate agents are salespeople licensed to work under a designated broker who ensures agents follow state and national real estate laws. Agents can't work independently and are prohibited from receiving commissions directly from their clients. Brokers can work independently and hire real estate agents as their employees. Each real estate office has one designated broker.
All commissions must be paid directly to a broker, who splits the commission with any agents involved in the transaction.
EXAMPLE OF A 4-WAY SPLIT COMMISSION
• Sale price $500,000 (6% commission rate)
• Total commission $30,000 ($500,000 x 0.06)
• Assuming split for each party 25%
— Listing agent $7,500
— Listing broker $7,500
— Buyer's agent $7,500
— Buyer's broker $7,500
The vast majority of real estate agents are paid on a commission basis. This means you'll earn a percentage of the sale price of properties you'd help sell or helped the buyer. However, some agencies might offer a base salary, especially to new agents, but this is less common. Typically, the total commission on a property sale ranges from 4% to 6%. This commission is then split between the buyer’s agent and the seller’s agent. Some brokerages, especially larger ones, might offer a base salary in addition to commissions or in place of them. This provides agents with a steady income but might come with certain performance expectations.
First, let's address the basics of a real estate deal. The relationship between agents and brokers helps explain how real estate agents are paid. Real estate agents are salespeople licensed to work under a designated broker who ensures agents follow state and national real estate laws. Agents can't work independently and are prohibited from receiving commissions directly from their clients. Brokers can work independently and hire real estate agents as their employees. Each real estate office has one designated broker.
All commissions must be paid directly to a broker, who splits the commission with any agents involved in the transaction.
EXAMPLE OF A 4-WAY SPLIT COMMISSION
• Sale price $500,000 (6% commission rate)
• Total commission $30,000 ($500,000 x 0.06)
• Assuming split for each party 25%
— Listing agent $7,500
— Listing broker $7,500
— Buyer's agent $7,500
— Buyer's broker $7,500
The vast majority of real estate agents are paid on a commission basis. This means you'll earn a percentage of the sale price of properties you'd help sell or helped the buyer. However, some agencies might offer a base salary, especially to new agents, but this is less common. Typically, the total commission on a property sale ranges from 4% to 6%. This commission is then split between the buyer’s agent and the seller’s agent. Some brokerages, especially larger ones, might offer a base salary in addition to commissions or in place of them. This provides agents with a steady income but might come with certain performance expectations.