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Ultimate Guide to the Real Estate Commissions
Many real estate buyers and sellers as well as newbie real estate agents are interested in how agents are paid and most importantly who pays real estate agents. First things first, real estate agents are paid based on commissions. Commissions are fees that real estate agents receive once the transaction is completed. Usually, real estate commissions are 5-6% of a property price which then is split evenly between listing and seller agents. This is a universal approach to real estate fees, but they can vary depending on the state and the contract.
Let’s dive in.
Real Estate Commissions: Who Pays Them?Generally speaking, real estate buyers are paying commission which usually is split evenly between listing and seller’s agent. On top of that real estate agents will have to divide the fee with the broker because agents are working under certified brokers. This means on average agents receive 1.5% of a 5-6 commission.
Even though real estate buyers aren’t paying commission for real estate agents alone, they still will need to pay closing costs.
Real Estate Commissions: Flat FeesThere are some real estate agents who work for flat fees. Obviously, this is something that is beneficial to the seller, but as a flip point, sellers are limited in their representation. Sellers in this case ... more

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