Whites House Team

  • Home
  • About Us
  • Blog
  • Our Listings
  • Buyer/Seller Info
    • First Time Home Buyer Tips
    • First Time Home Seller Tips
  • CIPS
  • Contact Us

How Do Real Estate Agents Make Their Money?

June 16, 2020 by Linda White

How Do Real Estate Agents Make Their Money?If you are planning to buy or sell a home, you will want to enlist the services of a real estate agent. But sometimes homebuyers and homeowners worry about paying for the services of a real estate agent.

After all real estate agents put an enormous amount of time and energy working for clients. They deserve to be compensated, but where does the money come from?

When You Buy A Home

When you contract with a real estate agent to buy a home, you do not pay the agent anything at all. In fact, they do not make a dime unless you actually end up buying a home. The buyer’s real estate agent makes money from the seller’s agent.

The idea behind this setup is that the buyer’s agent is bringing a deal to the seller. For that service, the buyer’s agent receives a percentage of the money that is paid to the selling agent. 

When You Sell A Home

When you hire a real estate agent to sell your home, the agent gets paid by commission on the selling price. No money actually comes out of your pocket ahead of time. When they do get paid, it is all through the paperwork at closing. Your final check from the sale will be less their commission.

Real estate agents charge varying commissions that range from 2% all the way to 6%, depending on the brokerage firm, the region and other factors. You should ask your real estate agent when you interview them what their rate is. 

Where The Money Goes

When your real estate agent does get paid, they do not get to keep all of it. Their brokerage firm gets a percentage and the seller agent gets a percentage. On top of that, many agents around the country choose to donate a small percentage of all their commissions to a favorite charity.

What Real Estate Agents Do not Charge For

Real estate agents do a lot to earn their pay, plus extras that they do not charge extra for, like:

  • hosting open houses
  • providing food and drinks during open houses
  • driving you around in your car to view homes
  • marketing your home online and in print advertisements

When it comes to hiring a real estate agent, you do not need to worry about paying for services. It is a system that works well for everyone involved in the home buying and selling process.

 

 

Filed Under: Real Estate Tagged With: Commisions, Real Estate, Real Estate Agent

Linda White - Knapp Realty

Linda White

Call (702) 301-0648
NV - BS.0143690

Robert J White

NV - S.0056824

Knapp Realty
Search for Homes →

Questions about Short Sales?

What's my home worth?

Property Search

Let’s Keep In Touch!

  • This field is for validation purposes and should be left unchanged.

Connect with Us!

Hablamos Español!


日本語でどうぞ!

Categories

Equal Housing Opp

Looking For Something?

Quick Links

  • About Us
  • Accessibility Statement
  • Blog
  • Contact Us

Our Location

Linda & Robert White
Whites House Team at Knapp Realty


39 E Basic Rd.
Henderson, NV 89015


Direct (702) 301-0647 Cell (702) 301-0648 Fax 855-975-3237

Copyright © 2023 · Powered by MySMARTblog