How does this work?

Zoe52April 20, 2013

I am very igonorant of how Realtor's get their commissions

If a house is listed and the buyer's real estate agent gets a 3% commission if they bring a buyer in to buy a home, do they have to share this commission with the Realty company they work for or do they get the full commission? Just wondering.

Thank you for reporting this comment. Undo
rrah

It depends upon the agreement the buyer's agent has with his/her broker. Some agents split the 3% 50-50 with the broker and pay minimal office/advertising fees. Other agents keep a greater %age of the 3% and pay higher office/advertising fees. If an agent is part of a national franchise, the franchise will typically also take a cut of the 3% before it is split between agent and broker.

    Bookmark   April 20, 2013 at 5:44PM
Thank you for reporting this comment. Undo
c9pilot

Here in Florida, real estate agents work for a broker. The listings belong to the broker and the commissions belong to the broker. Then the broker pays the agent.

For example, a house sells and the typical 6% out of the seller's proceeds is split by the title company who sends 3% to the listing broker and 3% to the buyer's broker. Each broker then cuts a check to his respective agent, which can be anywhere from as little as "40% of the 3%" to as much as "3% minus $250" or whatever agreement the broker-agent have with each other.

40% agents are generally brand-new agents in full-service brokerages. The latter are in self-service brokerages - where the agent pays for basically everything - advertising, signage, training, etc.

    Bookmark   April 20, 2013 at 6:19PM
Sign Up to comment
More Discussions
escrow account for a repair
We received an offer on our house! The house is priced...
karin_2009
Getting house ready to sell and have door knob question.
My house is going on 11 yrs old. Everything is pretty...
padillasideas
Home sellers: Terrible experience with realtors?
Hi there, I'm getting ready to sell my house and need...
dollhausimaginations
something to check when buying a home (pets/carpet)
something i wish i'd checked out before purchasing...
kiki_redo
Home closing delayed or is it a wash-out?
Hello everyone, I am a new poster, but have enjoyed...
housesellerc
People viewed this after searching for:
© 2015 Houzz Inc. Houzz® The new way to design your home™