If you’re looking at buying or selling a home, then odds are that you will consider working with a real estate agent. When considering working with a realtor, it’s essential to factor in how real estate agents get paid.
In general, agents get paid on commission. At this time, the average commission for agents is approximately 6% of the price that the home sells for. This 6% is split between the buyer’s agent and the seller’s agent, such that each agent receives a commission equal to 3% of the home’s sale price.
For example, if a property is listed at and sells for $200,000, each agent will receive a 3% commission of $6,000, for a total of $12,000. This commission is paid by the seller, both to their own agent and to the buyer’s agent, leaving them with a net of $188,000. Depending upon the brokerage with which each agent works, they may have to then split their commission up to 50% with the brokerage, leaving them with as little as 1.5% of the original sales price – in this case, $3,000.
As a seller, it’s important to understand how commissions are structured and the way in which both your agent and the buyer’s agent will be paid, to help you determine how to price your home. A better understanding of this process can also help you to recognize the amount of work that your agent is putting in for the size of their commission, and can improve your relationship with your agent and make the process a more positive one for all parties involved!
If you’d like to learn more about how real estate agents get paid and how commissions work, reach out to Asheville Cash Buyers at 828-222-6443 or at AshevilleCashBuyers.com!