How Real Estate Agents Get Paid

How Agents Get PaidI’ve been explaining this a lot to my clients, friends and family lately. I’ve also inserted myself into complete stranger’s conversations when I heard them complain about how cheap their Realtor is, yeah you better believe I stick up for my brothers and sisters. I haven’t been doing this because I get on a soapbox or to toot a horn of financial/business martyrdom. But because so many don’t really understand how Realtors get paid, all they see are the yahoos on HGTv “Selling LA” making $75,000 — $150,000 per transaction. Sure! Those guys exist, but they aren’t the norm. That’s why I’ve been making it a point to explain that as a Homeower, you have two very important questions to ask your listing agent.

  • How Much Do I Pay You?
  • How Much Do I Pay A Buyer’s Agent?

These are two very important questions you should ask if you’re looking to sell a house, property, town home or condo. Because YOU control how much you pay a buyer’s agent. WHICH can impact the frequency that your house is shown and how intense an agent might try and sell it. Why does this matter? Well because the average Realtor un the United States closes 5 transactions per year. So they can try extra hard to sell your house (That you’re offering 1.5% on), or the house down the street (That your competitor is offering 3% on). If you aren’t making it worth their effort to go the extra mile to sell your property, you better believe that they wont. You really do get what you pay for!


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