How do real estate agents get paid?
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)
Viral (pronounced like "virile") "Vic" Joshi is an independent California Home loan expert and licensed real estate agent who has been guiding home buyers through the mortgage loan process for over 20 years. Vic is an agent with the Straight Deal Mortgage, offering preferred access to virtually any mortgage loan product available. He is a proud San Francisco Bay Area native, a certified Rescue Scuba Diver and a loyal Warriors fan. Learn more about Vic here
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