I sometimes sense an underlying suspicion that some people think Realtors make too high of a commission.

I also happen to know that MOST people don't know just how much an agent actually takes home.

This is a " sticky" subject... and somewhat tabu to discuss, but I have never been known to be shy!

I actually think it is a very important subject to educate the public on.

Disclaimer#1 : there are NO SET standardized commission's charged. Brokerages and agents vary their fees, and they sometimes negotiable.

Disclaimer #2: Agency's are each run differently, and broker/agents splits are confidential and vary widely.

In Washington, you cannot make money as a real estate agent or Realtor unless you are under a Broker. I don't know if this applies nationwide, but I believe it does.

For this reason, an agent either pays a monthly desk and/or transaction fees- or the commission paid to the brokerage is split by the brokerage and the agent in some manner.

With that being said, I will use a math for dummies explanation of how much an agent would average in a make believe transaction that is fairly representative of what might occur. (100K )

THIS IS JUST AN EXAMPLE, BASED ON PROBABLE FEE'S:

SALES PRICE: 100,000

6% Commissions: 6,000

3% for listing brokerage 3,000

3% for selling brokerage 3,000

How does this 3,000$ per side break down?

A) Some kind of /broker agent split let's say 75%/ 25% = Realtor's pay of 2,250$

B) Then Realtor pays taxes on this of somewhere around 20% or more: now he has 1,850$

C) He has to pay some offices fees for postage, marketing, and other monthly expense of say 200$

This is 1650$ left as spendable income. (That is usually very hard earned money...if he has done his job correctly.)

D) The average agent puts 25% of his spendable income BACK INTO HIS BUSINESS as there are a myriad of expenses: Errors and Ommissions Insurance, phone bill , technology, marketing, auto, postage, assistants, and continuing education ... just to name a few.

The moral of the story is that of the 6%, the individual agents do not make a killing. I think since we offer a service to the general public they have the right to know how we get paid, and where it goes.

This is just a hypothetical scenario, but pretty average. COMMISSIONS VARY AND ARE NOT STANDARDIZED, AGAIN THIS IS JUST AN EXAMPLE.