Who pays a real estate agent is a very common question. To understand who pays the real estate Fees -- whether it is the sellers or buyers or both -- first take a look at how real estate agents are paid and how they share cooperating commissions.
All fees paid to a real estate agent pass through the Primary broker.
A portion goes to the listing Brokerage and then a portion goes to the listing agent
Another portion goes to the selling Brokerage and then a portion to the selling agent.
That Commission is split 4 ways so far.
Off the top - a percentage goes to the franchise entity. And then Assuming that referral fees are also need to be paid out........ Splits between brokers and agents vary a lot!
Only a Broker/Owner can pay a Real Estate Commission.How Are Real Estate Agents Compensated by the Broker/Owner?
Some agents can receive as little as 30% to 40% of the total commission received by the brokerage. From that amount, other fees may be deducted such as advertising, sign rentals or office expenses.
Top producing agents might receive 90-95% but pay the Broker/Owner rental desk fees of $1200 or more a month.
For starters, real estate agents enter the profession from all walks of life with varying levels of education & motivation. Some become a real estate agent for the money, while Others want to be part of a profession that helps others to accomplish dreams. For many, a real estate career offers the opportunity to be your own boss.
So How Much Does an Average Real Estate Agent Earn? On average, according to Salary.com, most agents earn betoween $34,000 and $45,000 annually.
As the years go by, agents can rely on referrals from satisfied clients to continue building their business and to service and attract more clients.
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