Home Buyers and Sellers, general public don’t understand sales commission splits
It’s somewhat annoying that many who have neither bought nor sold real estate property using a REALTOR would denigrate the profession. And even if they have, how little they know or understand about we earn a living and how the commission split works.
During the monster storm Sandy, newscasters interviewed by phone a famous New York REALTOR to ask her about the unfinished building where the crane toppled over. The REALTOR talked about why the units at this building would be high-priced --- besides the location, the views are breathtaking!
After hanging up, one of the newscasters made a somewhat snide comment about the 6% commission that this REALTOR gets from a sale.
Wow....they still think a realtor gets the entire commission, regardless of whether she’s a buyer’s agent or a seller’s agent.
As many articles as have been written to explain how hard a REALTOR works and how the sales commission is divided and shared among the agents and the brokerages, what seems to stick in people’s minds is that “6%”.
The shortcut computation, quite simply, it's split 4 ways among the
- buyer's agent
- buyer's agent's broker
- listing agent and
- listing agent's broker
Perhaps we should keep on trying to educate the public
- How do real estate agents get paid? -- REALTOR.com
- How is commission split between buyer’s and seller’s realtors? - REALTOR.com
- How real estate agents are compensated - About.com
- Methods of compensating real estate agents - About.com