Real estate agents make a commission when the transaction is closed. #PeterVekselman #PartnerDriven #Motivation
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So how does a real estate agent make their commission? Well, it’s very simple. A real estate agent makes her commission when a transaction they’re involved in closes. So you can either make it as an agent on the buy side where you could make it on the sell side. So for instance, let’s say as an agent, you have some buyers that are looking to buy a piece of property or a house. So what you do is you do research on the properties that they’re interested in. Most of the time you take these potential buyers around you show them these potential houses, you walk them through, answered their questions. You even make offers on their behalf, you and the Goshi deals on their behalf. You get the paperwork done on their behalf. You literally walk them through the process all the way from the time that you meet them to the time the property closes.
Um, same thing on the seller side, if someone’s listed, interested in selling a property, they might reach out to a random agent, maybe a friend of theirs that is licensed. And then what happens is that agent walks that seller all the way through the process of what it means to sell that house. Uh, like for instance, they may have that seller fixed something in the property. They may have that seller update something in the property. Then they’re going to advertise that property to literally the whole world through what is known as MLS or multiple listing service. And through MLS, this property gets choose exposures. Um, the selling agent also takes the calls on the, on the seller’s behalf from potential, uh, prospects. Uh, the selling agent shows the property again, the selling agent negotiates the deal on behalf of the seller and takes them all the way also to closing.
Usually at closing, 6% gets paid out to the agents, 6% of whatever the sales price is. If and that could change depending on how many agents are involved. Like if one agent involved, they could potentially take 6%. Sometimes these, uh, percentages are negotiated. If there’s two agents involved and most of the time the commission is split in. If let’s say a whole 6% gets paid out and 3% will go to the selling agent and 3% will go to the buying agent as a real estate investor, as a real estate agent, you gotta work to make your money commissions take place closing. That’s when everybody gets paid.
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