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For the most part, your math is right. No one knows the contract the agent has with their brokerage. Some people have to pay out 45-50% and others have to pay out 60-70%. It's not the consumer's business what the agent has in terms of a contract with their brokerage. Also, sometimes the split changes depending on how the buyer/seller came to use that agent.
So if the typical commision is 6%. That means both brokerages get 3%.
And after paying his fee to the broker, the listing agent might end up with 1.5% of the selling price?
Is my math right?
Your math is right with regard to the official number of "participants": four.
The listing side has the broker/company and their agent, and so does the selling side. Occasionally the listing agent and selling agent are with the same broker/company, in which case the broker/company gets their share twice. The agent compensation remains the same as in the other example.
The amount of the "payout" (how much the agent gets) depends on many variables.
A home run for the listing agent is when s/he has both the seller and buyer!
Your basic math is right, and then the government takes a bite! The two brokerages do usually split the commission evenly, but everything else is negotiable and variable!
I think it is nice to be a broker! Yes, you're right.
Most brokers still spend a little time being agents as well, but some are consumed by the business and can't actually sell houses any more.
And broker arrangements do vary widely, as said above. But it sure feels like we have to spend a lot of money and write a lot of checks for fees and memberships and expenses, before we make anything back! Some agents pay a monthly desk fee and pay less out of their commission. Some brokerages, like mine, we pay a brokerage split up to a cap for the year and anything we make over that is 100% ours. That's the goal!
Two type of brokerage full service and discount. Full service is paid commission average fees for full service is $120. And discount not offer investment advice online discount range is $4.25 to $20.
There may also be a refferal fee that has to be paid too! Usually 25%
I think sometimes people do the math on 6% of a home's price and think that agents are just rolling in dough. But that money is divided up quite a bit before the agent gets a check and I didn't even mention expenses!
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