How Realtors Are Paid

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For those who don’t live and breathe real estate, it is often a mystery how Realtors are paid. Those who are buying or selling a home may wonder to themselves, “how is my real estate professional compensated for their services?” The answer and the break down are rather simple in most cases.

The Listing Brokerage has secured a percentage of the listing price as the commission. For example, let’s say that the fee will be 6%. Once the home has sold, this 6% will be split among the two firms or brokerages who are involved in the transaction. Again, the fee will be spilt, but this time within the office. Often, this split is 50/50 and is between the individual agent and their broker.

This is an example; all fees are subject to negotiation and can vary from transaction to transaction.


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