When buying or selling in real estate, how is the agent’s commission calculated?
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When buying or selling in real estate, how is the agent’s commission calculated?
More times than not, the commission is set by the sellers of the properties and their agent. The listing agent sets the total commission of the deal when they list the home and this commission is split with both agents in the transaction, or if the listing agent procures a buyer and all parties are in agreement then the one agent could get the full commission.
The commission is calculated to be whatever the seller decides it should be, but most agents don’t clearly explain that to the seller and most sellers have no clue that this decision is in their hands. The truth is, that the seller can offer as much or as little commissions to their agent, and to the buyer agent as they wish. Real estate is very competitive. So, as an agent, you’d want to be able to justify your value to your client.