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Prev Next  Andresr/Getty Images 6 min read Published October 13, 2022 CheckmarkExpert verified Bankrate logoHow is this page expert verified? At Bankrate, we take the accuracy of our content seriously. “Expert verified” means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced. Their reviews hold us accountable for publishing high-quality and trustworthy content. About our Review BoardWritten by Kellye Guinan Written by Kellye GuinanArrow Right Kellye Guinan Edited by Troy Segal Edited by Troy SegalArrow RightSenior homeownership editor Troy Segal is Bankrate's Senior Homeownership Editor, focusing on everything from upkeep and maintenance to building equity and enhancing value. Troy Segal Reviewed by Jeffrey Beal Reviewed by Jeffrey BealArrow RightPresident, Real Estate Solutions Jeffrey L. Beal, president of Real Estate Solutions, has 40 years' experience in multiple phases of the real estate industry. Technically, an agent’s commission is not included in a home’s closing costs. Closing costs are an assortment of fees, separate from agent commissions, that must be paid at closing. Closing costs typically include things like taxes, title insurance, appraisal, lender fees, and other services carried out during closing. Closing cost amounts vary depending on the buyer's loan program, but they usually total 2%–5% of the home's purchase price. Short answer: Probably not. Real estate agents are paid when you sell your home, so if your home doesn’t sell, you shouldn’t owe them a commission. Long answer: Read the fine print. Generally, your contract with your agent is bound to a certain time period. Unless your contract says otherwise, you are typically not required to pay your selling agent if the contract expires and your home doesn’t sell. However, there may be some exceptions, such as: Whether you are a homebuyer or seller, you will likely work with a real estate agent for your transaction. (Here’s how to find a real estate agent in your area.) Unlike other professionals who bill their clients at hourly rates, real estate professionals are paid at the end of a sales transaction. If a real estate agent works with a buyer or a seller for weeks or months without a resulting transaction, they aren’t paid for their time. Real estate agent commission is earned based on the sales price of the home; they will receive that commission only after the transaction goes to settlement. Commissions are negotiable between listing agents and their clients. So how much does a real estate agent make? It depends on the closing price of the home. If the home sells for $500,000, a 6% commission would be $30,000. In many cases, the commission is evenly split between the buyer’s agent and the listing agent, but sometimes the split is negotiated unevenly. For example, a seller could agree to pay a 5.5% commission divided so that the listing agent receives 3% and the buyer’s agent receives 2.5% of the listing. Selling your home?Find out what selling options are available for your home. Enter your address and answer a few questions to get started. Compare agentsWhile some real estate agents are also brokers or associate brokers—positions that require extra training and licensing—commission payments go to the broker who manages the real estate brokerage where the agent works. The commission is then split between the broker and the real estate agent according to their agreement. The commission split varies from one agent to another, with new agents sometimes earning a smaller percentage of the commission than experienced agents or successful ones who sell more homes or more expensive properties. The commission is split at the settlement table between the listing agent’s brokerage and the buyer’s agent’s brokerage; then the agents themselves are paid by their brokers. Who pays the commission?Technically, the real estate agent is paid by the home seller at the settlement table, where the fee is subtracted from the proceeds of the home sale. However, the sellers will take the agent’s commission into account when determining a listing price. So, in a sense, the buyers are paying the commission because they’re paying to buy the house. Contracts and commissionsThe exact percentage of the real estate agent’s payment (or commission) should be spelled out in the listing agent’s contract with the seller. This ensures that the listing agent gets paid if the property sells, regardless of who buys it. Listing agents and their brokers spend time and money marketing a home, advertising, and preparing the home for sale, so what a real estate agent gets paid is to cover those services. Buyer’s agents typically have a contract with their clients so they are paid when the buyer completes a purchase, even if the buyers found that particular property on their own. Whether you’re a buyer or a seller, the professional support of a real estate agent who represents your interests should be worth every dollar of the commission. What percentage do most realtors charge?Nowadays, real estate commissions can be negotiated, and they typically run about 5 percent to 6 percent of a home's sale price. The exact terms of an agent's commission vary from sale to sale, and can depend on the region and which firm they work for.
How much does the average realtor make in NC?The average salary for a real estate agent in North Carolina is $35,000 per year. Real estate agent salaries in North Carolina can vary between $17,500 to $214,000 and depend on various factors, including skills, experience, employer, bonuses, tips, and more. Was this helpful?
How much money do realtors make in Illinois?Market Analysis(earn +61.67% more)
Real Estate Agents with this skill earn +61.67% more than the average base salary, which is $84,785 per year.
How much money do realtors make in Washington state?On average, real estate agents make $84,459 per year according to salaries reported by Indeed users. Was this answer helpful?
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How much commission do real estate agents get
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