Many people are afraid to ask their agents how much money they are going to make on a purchase or sale of a home. However, just like in any other type of business transaction, this can be a fair question to ask. The hard part is in understanding the other factors that come into play when considering an agent’s income from the sale of a particular property.
If you have ever asked yourself – how much does the real estate agent get in a home sale? You might be surprised to find out that it is probably a lot less than you might have thought. First of all, there are a number of factors that need to be considered when looking at the sale of a home. For example, a agents can be representing either the seller or the buyer in a transaction. It is also possible that the agent is representing both sides of the transaction; this occurs when an agent sells a home that they have the listing for.
Typically, a homeowner who lists their property with a real estate agent will have a contract with that agent and their brokerage or company. The contract will generally stipulate that a given percentage of the sale price will be the brokerage fee. However, this fee is not what the agent will receive.
When a property sells, the real estate brokerage will collect their percentage from the sale of the home. This fee is generally split between the listing broker, the company representing the seller and holding the listing, and the buyer’s broker. These brokers may be two separate entities, or they may be just one company. At this point the fees are split according to the agent’s agreement with the broker they work for. Both the agent involved in listing the property and the one who brought the buyers will get their commission from their respective brokers.