Real estate agents are paid by commission on a percentage basis for their work for real estate brokers or real estate agencies. Agents share their commission between the buyer’s agent, the listing agent, and the agencies those agents work for.
According to Investopedia, a typical commission split might look like this for the sale of a $200,000 property with a 6% commission:
- Listing agent: 1.5% ($3,000)
- Buyer’s agent: 1.5% ($3,000)
- Listing agent’s broker: 1.5% ($3,000)
- Buyer’s agent’s broker: 1.5% ($3,000)