how do real estate agents make money

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Most real estate agents make money through commissions.A single commission is usually split multiple ways between the seller’s agent and broker,and the buyer’s agent and broker.The commission split depends on the agreements the agents have with their sponsoring brokers.

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Here’s a rundown of how real estate agents get paid攁nd how much they make. Most real estate agents make money through commissions. A single commission is usually split multiple ways between the seller’s agent and broker, and the buyer’s agent and broker. The commission split depends on the agreements the agents have with their sponsoring brokers.

This equals a total commission of $12,000. If the house sells for the asking price, both the listing broker and the buyer’s agent’s broker get half of the commission, or $6,000 each ($200,000 sales price x 0.06 commission 2). The brokers then split the commissions with their agents.

Brokers earn money two ways: A percentage of the commission earned by the agents they sponsor. One hundred percent of the commission from their own deals. The seller is responsible for paying the commission, which is typically 6% of the sales price. The listing broker will offer a commission split with the buyer agent (normally 50/50).

If the home sells for $500,000, a 6% commission would be $30,000. In many cases, the commission is evenly split between the buyer agent and the listing agent, but sometimes the split is negotiated unevenly.