If a real estate agent works with a buyer or a seller for weeks or even months without a resulting transaction, then they just aren’t paid for their time.
Realtors earn a commission based on the sales price of the home and they only receive that commission only after the transaction goes to closing.
Commissions are negotiable between listing agents and their clients. Some brokerages offer commission discounts for sellers, but a typical commission is between 5 and 6 percent of the sales price.
Most of the time, the commission is evenly split between the buyers’ agent and the listing agent, but sometimes the split is negotiated unevenly.
For example, a seller could agree to pay a 5.5 percent commission divided so that the listing agent receives 3 percent and the buyers’ agent receives 2.5 percent. So it all depends on what they agreed on.
Who Ends Up Paying the Commission?
Technically, the total commission is always paid by the seller at the closing table, where the fee is subtracted from the proceeds of the home sale.
The commission is split at the settlement table between the listing agent’s brokerage and the buyers’ agent brokerage; then the agents themselves are paid by their brokers.
Now if it’s a short sale property, then it works a bit differently and I’ll be talking in detail about that in my next video. “How Do Realtors Get Paid on a short sale”
For more information call us at 407-902-7750 or visit us at https://orlandorealtyconsultants.com/