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If the agent is new, they probably DO get a very small cut of the total commission.
It surely will NOT be $10,000.
More likely the agent will see about 1/4 of the $12,000, at best.
So, maybe $3,000. Before taxes and expenses.
Maybe less if there is a franchise fee to be paid.
If the firm has a policy that a newbie will work with and compensate a mentor for support and guidance, that could be another 20-30% off the $3,000.
This is about what I thought. Thank you for reasonable, non offensive post.
I'll definitely not come back to this "Real Estate" forum for anything.
My house is under contract and the agreed upon commission was 6%. The house sold pretty quick and I've made the comment that the agent didn't have to do too much and of course that rattled them. According to them, their share of the 6% is very low.
So I'm curious if anyone has an ideal of about what this is for the actual agent. I do know this agent is fairly new to the business, so I'm guessing it's low. Let just use $200000 selling price for easy numbers. How much of 12000 actually goes to the listing agent in someones good guess?
Different brokerage companies offer different types of commission splits, and some even offer an option for their agents to choose from.
A few examples:
- an agent can pay a monthly flat fee to their brokerage
- a monthly fee + a percentage of their sales commission
- a straight percentage of their sales commission
Keep in mind, out of that amount are the typical deductions such as federal and state, medicare, social security withholdings, and retirement savings. And usually an agent is responsible for their own healthcare insurance costs since they are usually 1099 contractors.
And FWIW choosing one of those examples usually comes hand-in-hand with how expenses are paid: some agents pay for advertising or are allocated a certain amount of space for advertising their listings, some buy their own stationary, business cards, signs, lockboxes, lockbox keys, association fees, franchise fees, continuing education costs, photographer fees, etc., etc. and in some instances the brokerage pays for some of those expenses but certainly not all.
If your buyers brought their own agent, your agent's brokerage (not your agent) probably receives $6,000, and then it's difficult to guess how much your agent will get because we don't know the fee structure for his/her brokerage.
My super rough guesstimate because this agent is new and is likely not high producing yet, he/she will gross less than $4k.
(my sister is an experienced agent and has shared with me how these things work)
All agents pull comps, get a photographer to take pictures, post it on a site, assemble collateral and host open houses. These are all table stakes and whether or not a house sells in a day or a year there is no patting on the back for that. Realtors, please don’t make this seem like a big deal because it’s not at all. Even video listings, ecards, etc. are all easily put together now.
In a hot market, with a competitive price and an attractive and clutter free property, it would take the absolutely worst of agents to not sell it quickly. Why? Because they aren’t actually selling anything.
Most listing agents list. They don’t sell. They CAN’T sell.
There are maybe 5-10% of the total population of agents in an area who are truly professional, and who can actually sell a home. You know this because when conditions aren’t perfect they still get the offers in. The hacks are the ones who - despite the home being competitively priced - only have “drop the price†as a suggestion.
I had one in Florida use the excuse “the weather is too poor for people to come to the open houseâ€, and then the next weekend “the weather’s so nice, people don’t want to come to the open houseâ€. (I didn’t select this agent, it was selected for me by a corporate relo company. She had a track record.) I’d ask for suggestions and she’d ask me what I thought.
A great one in NY got me an offer in a down market during the worst time of the year to sell. She was motivated, knew what we needed and committed to us to getting it done.
A good agent is worth their weight in gold, and 6% is a good deal.
A poor agent only keeps your house on the market, doesn’t think creatively, adds stress and doesn’t help you sell.
Inspection only turned up one thing and I'm the one that has totally handled this.
I guess I will assume the agent makes about $10000 of the 12000. But by no means will I congratulate her or thank her. Way to many times she has talked to me and said "you", rather than "we".
The agent is really only a 3rd party of the sell in this situation.
I also bought a house with this agent and she failed on many, many fronts in hind site. So the sooner this transaction is done, the better.
I'm sorry you've had a bad experience.
From what you've said, she wasn't the one that brought the buyer, so you should expect she gets about $3K.
OP, say your boss gave you a project and you both agreed to do it for a certain wage. You managed to get the project done (though in your case, the project of selling your house is NOT done until closing - the real work starts once you have a contract and is often not seen by the client if the agent is any good at dealing with potholes on the road to closing), and you got it done quickly because you're good at what you do.
Then your boss comes to you and says, "You got that done so fast, I don't think I want to pay you what I agreed to do. Why don't you give me some of your salary back?"
Realtors are overpaid! I don't know why people fall for this though. I sold our primary house of 6 years last year - House was in perfect condition. I offered 4% total (1.5% = 2.5%). My agent freaked out when I told him I am sticking with 4%. he realized quickly someone else was going to grab it so called me later that day apologized and agreed. Was under contract within 3 days. Not going to pay 6% ever. Even 4% is way too much for what they do.
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