• Real estate agents earn their money through contracts with the seller, or sometimes the buyer, of the property. It is usually based on an agreed percentage of the sales price, but does not have to be. It can be a fixed amount that is negotiated between the parties. In general, the pay is disbursed by the escrow company at the time of the signing of the final papers. Since it depends on how many houses are sold, and the price of the houses, the salary is variable. A hard working, good sales agent can easily make $100,000 a year, but most agents are more likely to be in the $30,000 to $50,000 earnings category.
  • There is a total commission of 5% to 6% of the total sale price. This is for a residential, single family home. If you are the listing or selling agent for raw land, the commission may be as high as 10% of the sale price. When the property is a rental, that's a completely different commission scale. HOWEVER the agent doesn't get ALL of that money. In fact, when its a cooperating deal ["co-op deal"] with another office: The listing agent has the property and The selling agent has the buyer There is STILL not a 3% split between the agents. The agents work under the license of a real estate broker. In the case of a "co-op deal", there are 2 licensed offices involved. Yes the offices split 3% each or whatever the arrangement is, which is stated in the contract, HOWEVER, the agents are on a flat pay basis OR on a commission basis of that office's share of the commission. For example: Agent A in Office A gets a listing for a property at $100,000. The Agent does everything which is connected with the sale on the Seller's behalf to bring the deal to settlement/closing/escrow. Agent B in Office B introduces the Buyer to the property. Agent B does the paperwork and makes sure the Buyer does everything the Buyer has to do to get the deal to closing/settlement/escrow. At the time of closing/settlement/escrow, the total commission is 6% or $6,000, which is equally divided between the two offices. Agent A had the listing. According to the arrangements Agent A has with Office A, Agent A's share of the commisission is 1/2 of the 3% or 1 1/2% or $1,500. Office A has bills and expenses to pay too. They get the other $1,500. Agent B had the Buyer. According to the arrangements Agent B has with Office B, Agent B's share of the commission is 70% of the 3% or $1,050. Office B has bills and expenses to pay too. They get the balance of 30% of that $1,500 or $450. NOTE: THIS IS NOT ALWAYS THE SCENARIO OR OUTCOME. Different offices have differnt fees and different commission schedules. Thanks for asking your Q! I enjoyed answering it! VTY, Ron Berue Yes, that is my real last name! My wonderful family! In the real estate business over 34 years in PA. My wonderful coaches & mentors. Yes, after all these years I continue having them in my corner! THE ABSOLUTE BEST, MOST WONDERFUL real estate investment group in the world, which I was very proud to be a member of! "THE University of Hard Knocks" Also known as ["a/k/a"] life's valuable lessons".

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