Real Estate Agent Classes

Buying and selling homes is something that the average person is not accustomed to.  It is often a milestone in their lives that only occurs once or twice.  So with new experience comes several questions on real estate and how the commissions are paid.

Who pays the real estate agent commission?

All real estate commissions, whether the buyer or the seller pays for the fees, must go through the original real estate broker.  Its is only then that a real estate broker can payout a commission to the real estate agent.

What percentage of the commission does a real estate agent get paid?

Depending on the tenure of the real estate agent, and how much he or she produces the payout of the total commission varies.  There is no set amount, or pay scale that is determined by years of experience.  The payout is negotiated between the real estate agent and the real estate broker before the agent starts showing property.  Generally new real estate agents get paid approximately 30-40% of the total commission that the broker receives.  It is possible that the real estate broker decides to deduct expenses like advertising and marketing from that 30-40% payout.  In other situations where there are high producing agents, they might receive up to 100% of commissions, but pay a set price for the branding, advertising and desk space of the real estate broker.

Does the buyer or the seller pay for the commission?

Depending on the agreement with the listing service, the seller and the broker, and a number of other factors, the buyer, or the seller can technically pay for the real estate agent’s commission.  Most people would argue; however, that the commission is always paid by the buyer.  The argument is such that the price final sales price of the property includes the price of the property, all real estate fees, and all closing costs.  If the seller is not satisfied with the price they are receiving, the simply would not sell the property.  That being said, all of the fees are “baked” into the final price of the home, which the buyer pays for.

If you want to learn more about real estate agent commissions and certifications, check out real estate agent classes.  Here you will find useful resources to become a successful real estate agent!