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The way your Real Estate agent is paid is through the closing of a sale on a piece of property. This can range from the sale of a business to another business to any and all property types.
The amount is based upon what the listing agent gets the seller to agree upon. There is no set amount, it is negotiated between the seller and the agent.
The buyers agent commission will be part of that negotiation. The amount the buyers agent will receive is posted in the mls listing so the other agent will know what their commission will be if their client completes a purchase on that property for sale.
So if you are the buyer your agent will be paid upon close of escrow, from the closing agent: you do not pay them directly.
If you are selling your home, and have selected a real estate agent to list your home and handle the sale, he or she will generally take a “ commission” – that is, a percentage of the price of the home when it is sold. This percentage varies throughout the country, but is often between 3-8%. This is paid by the seller of the home to the agent or agents at closing.
If you are buying a home, and seeking the assistance of a buyer’s agent to help you locate a home to BUY, the agent will search for acceptable homes, and then share in the duties of the transaction, and generally split the commission that the SELLER is paying with the other agent involved according to terms that the seller and the seller’s agent had determined when listing the house. In most areas, the BUYER does not pay the agent at all.
Because local customs will vary, and some agents offer “a la carte” or “assist” services as well as full agency, any good agent on either side of a transaction should be willing to have a frank and upfront conversation about the nature of their duties, and how they will be compensated, before any agency agreement is drafted or signed. Feel free to ask your agent directly, and make sure you fully understand the response.
How is my real estate agent paid?