A Realtor's compensation is 100% commission based and they do not receive any pay for the work they do until a sale is made and escrow is closed.
The standard commission for a real estate transaction is usually 6% of the home’s sale price, according to most real estate companies. The commission is usually split between the seller’s real estate agent and buyer’s real estate agent—meaning both agents receive a 3% cut. So, if you’re buying or selling a $250,000 house, the agents would receive a total of $15,000 (or $7,500 each). Now, if you’re like us, when you’re charged a fee that big, it’d better be for a good reason, right?
A real estate commission covers all the work that goes into buying and selling property. Trust us, a great agent does a lot to help you buy or sell a house. A seller’s agent shows you how to stage your home for buyers and—since they know what similar homes in your area are selling for—they help you price it right. They also put your home in front of a ton of buyers using a multiple listing service (MLS), social media and ads. This helps you get your home sold quickly and for top dollar.
Meanwhile, a buyer’s agent studies home listings that match your needs and price range. They help you arrange a home inspection and oversee any necessary repairs or contract adjustments so you don’t get a bad deal. They do everything they can to help you find and purchase a dream home that’s within your budget.