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Also with regards to an agent selling a home for a client and looking for a new home, I would assume that 3% covers both sides of the agreement that they agent is not getting for each home?

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Posted by Faithea Flowers (Questions: 5, Answers: 4)
Asked on September 27, 2014 7:42 PM
508 views

Not usually. The seller of the home has a listing agent. Typically, the seller pays the listing agent’s broker who will then pay the listing agent.

The buyer of the home may have a buyer’s agent. Typically, the seller pays the buyer’s agent’s broker who will then pay the buyer’s agent.

Let me explain it another way, too.

Using 6% commission, just as an example. Sales Price: $100,000

Seller pays 6% = $6000. Listing Agent’s Broker gets 3% = $3,000 and Buyer’s Agent’s Broker gets 3% = $3,000.

Listing Agent and his/her broker splits it 50/50, as an example, $1,500 each. Buyer’s Agent and his/her broker splits it 50/50, as an example, $1,500 each.

So, the two agents may receive $1,500 BEFORE expenses (marketing flyers, advertising fees, MLS dues, legally required liability insurance, etc. I can go on and on . . . then taxes).

Posted by Faithea Flowers (Questions: 5, Answers: 4)
Answered on September 27, 2014 7:42 PM
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