How Do Real Estate Agents Get Paid?
When it comes time to start the real estate sales or purchase process, acquiring support from a dedicated real estate agent can help you make the right decisions and avoid potential pitfalls. Worries about being able to pay the real estate agent’s fees, however, may threaten to deter you from securing help from this important professional.
Fortunately, the fee structure and payment process is actually designed for the ease and convenience of both buyers and sellers. Read on to learn all you need to know about how real estate agents receive pay for their services, so you can go into the home buying, or selling, process with confidence.
Full or Shared Commissions
Whether they are working for buyers, sellers, or both, real estate agents only collect payment for their services rendered after the sale of the property finalizes. The payment comes in the form of a commission check, which may either be a flat fee or a percentage of the sales price. If the buyer and seller have separate agents representing them, then both agents split the agreed upon commission payment right down the middle.
The typical commission rate on a real estate transaction is about six percent. If the home sells at a final price of $300,000, then the commission rate will total $18,000. The buyer and seller are not directly responsible for issuing this payment since it is normally worked into the price of the home.
During the negotiation stage, buyers and sellers can agree to split the payment through the reduction of the sales price by half of the commission payment. Otherwise, the buyer will usually cover the full agent fees indirectly through the finalized sales price of the home.
Timing of Payouts
Real estate agents must wait for the transaction to go through the settlement process before receiving a commission check. If either party backs out of agreement, or other factors impede the sale, the real estate broker Bellevue will not receive payment for the services provided through the showing and negotiation process.
In rare cases, real estate agents working for broker agencies may receive hourly pay when this situation occurs. Most of the time, however, agents must restart the process anew when their clients are ready to pursue another real estate transaction.
Starting Your Real Estate Journey
Since real estate agent fees are covered by the property cost, it makes sense to acquire professional assistance during your purchase or sales journey. With this professional by your side, you will receive timely market information, help finding a home and assistance with the negotiations process.
Begin your real estate journey today by securing the services of a trusted real estate agent in your area.