What Is a Real Estate Agent’s Commission? | Houses For Sale In Chesterfield Mo

What Is a Real Estate Agent’s Commission?It’s your money. Why not try to keep as much of it as you can?

Working with a real estate agent is par for the course when buying or selling a home, so it’s good to know how they get paid for their real estate commission, what specific duties they should or shouldn’t be involved in, and their role in helping you into the home and neighborhood that best suits your lifestyle.

Working with a real estate agent is par for the course when buying or selling a home, so it’s good to know how they get paid for their real estate commission, what specific duties they should or shouldn’t be involved in, and their role in helping you into the home and neighborhood that best suits your lifestyle.

Typically, a real estate agent is paid on commission based on a home’s sale price. (In certain cases, their commission is a flat fee.) When a commission is based on a percentage, the agents get 6%— split between the buyer’s agent and the seller’s agent—and always paid by the seller. If you’re using the same agent to trade up or downsize, they’ll receive the 3% commission twice, but on differing values.

Because of the level of involvement, the 6% commission is typically split four ways: The seller’s agent, the seller’s broker, the buyer’s agent, and the buyer’s broker all get a piece of the pie. The broker and agent have separate agreements dictating what percentage of the commission each receives, and therefore your specific agent’s commission may and will most likely be less than the full 3% on the buyer or seller’s side. However, if the broker and agent helped you sell and buy, the brokerage will receive the full 6% and split it however they deem appropriate.

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