How to Pay the Real Estate Agent


In a field like real estate where commissions are based on the value of a sale, there are wide variations in the amount that an agent makes. Some agents make a good living while others are barely scraping by. This is especially true in a market where the number of home sales is down and many real estate agents are struggling to find clients.

Despite these challenges, most real estate agents continue to work hard because they love their job and want to sell homes. However, many home buyers and sellers are unclear about how exactly real estate agent commissions work. This article will take a look at how real estate agent commissions are structured and who is responsible for paying them.

How to Pay the Real Estate Agent

The answer to this question is a bit complicated and depends on whether you are buying or selling a property. Typically, real estate agents are paid by the person who is selling the property, though in some cases, they may be paid by both the buyer and seller. Ultimately, it is up to the seller to decide how they want to pay their agent. Also read


When selling a property, it is the seller who is responsible for paying the real estate agent’s fees. They have the option to build these costs into the home’s asking price or to include them in closing costs. The real estate agent fee is usually split between the seller’s real estate broker and the buyer’s real estate agent. The broker is often paid a flat fee for their services, while the agent’s commission is a percentage of the home’s selling price.

In most cases, the percentage of the home’s selling price that the real estate agent is paid will be listed in the property’s MLS listing. In addition, the broker will likely list it in their marketing materials and on their website. However, it is not uncommon for the real estate agent to negotiate a higher or lower percentage of the selling price with the seller’s broker and/or the seller.


If you are purchasing a property, the real estate agent’s fees will be incorporated into the purchase price of the property. This is typically what the real estate agent will tell you up front, though it is always negotiable. In addition, if the property is being rented, it is up to the tenant and landlord to determine who will pay the real estate agent’s fees. Tenants can expect to pay between 8% and 15% of the annual rent for their real estate agent. If you are interested in a career in real estate, learn more about how to get your New York license. Getting your license can help you land a lucrative job in the real estate industry.

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