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Hannah Rouss…, Home Buyer in Alhambra, Phoenix, AZ

how much does a relator make off a sale of a home?

Asked by Hannah Roussin, Alhambra, Phoenix, AZ Wed Jan 12, 2011

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6
It depends.

It depends on the commission the seller has agreed to pay. (It's negotiable.)

It depends on whether there's one or two Realtors (one for the seller, another for the buyer) involved.

It depends on the arrangement each Realtor has with his/her broker. Some agents get to keep all the commission. Some keep a lesser amount, sometimes only half.

And it depends on whether when you ask how much a Realtor "makes," whether you're referring to commission or profit.

Here are a few examples. Again, understand, all commissions are negotiable. These are only examples.

Take a property that sells for $100,000.

Let's say an agent lists a property, and the seller and agent agree on a total commission of 6%. And the seller agrees to pay a buyer's agent 3%. And let's say each agent splits the commission 50/50 with his/her broker. In this case, the listing agent ends up with 1.5%, The buyer's agent ends up with 1.5%, and each of their brokers ends up with 1.5%. In this case, the listing agent's commission would be $1,500. Subtract from that all the expenses the agent had in selling the house (marketing, web site, postcards or other direct mail, etc.) and that's what the listing agent "makes."

Let's say the agent lists a property for 4.5%, but with the same scenario as above. The buyer's agent gets 3%. In this case, the listing agent and broker divide 1.5%, or $1,500.

Or let's say the agent lists a property for 7%. The agent also finds a buyer for the property, so the agent collects both portions of the commission. And let's say the agent works for a broker that charges the agent a flat $300 a month, with the agent keeping all the commission. In this case, the agent would make 7%, or $7,000--minus any expenses. Note: This last scenario is possible, but very unlikely.

One additional note: You've listed yourself as a "Home Buyer." In this case, you have no control over what anyone makes. There's already a contract between the seller and the listing agent as to what the commission will be and how much of it will be paid to the buyer's agent.

Hope that helps.
2 votes Thank Flag Link Wed Jan 12, 2011
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
The broker/brokerage company earns a professional fee for the sale of the home.
The amount collected is per prior written agreement and is negotiable.
The Realtor is paid by the broker/brokerage company less in-house expenses and splits, insurance and office/desk fees if applicable.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Wed Jan 12, 2011
Keep in mind that commissions are always negotiable between the seller and his/her agent, therefore it really depends on the negotiated amount, the final price of the home, and if two agents are involved in the transaction, the commission is shared....thereafter, it will depend on the agent and his/her broker split; in addition the agent does pay any possible franchising fees, any marketing costs, any other costs associated with the sale, such as gas, time, etc.
0 votes Thank Flag Link Wed Jan 12, 2011
It depends upon what negotiated fee is between the seller and the listing Broker / agent .

Example:

Lets say the commission is 6% on a 100,000 sale and the listing agent finds a buyer customer to purchase the home. The total commission the listing Brokerage receives would be 6,000 , the Broker takes their portion say 30% and the agent gets the remaining 70% or 4,200 minus any transaction fees etc... If another agent , the buyers agent brings a buyer than the 6,000 is divided between the two brokerages 3,000 . If the listing and the selling brokerages portions are 30% than the remaining 70% 2,100 minus any fees goes to the listing and selling agents
0 votes Thank Flag Link Wed Jan 12, 2011
Usually, whatever the commission (percentage of sold price) that is contractually agreed upon between the seller and the listing agent, split 4 ways between listing agent, buyer's agent and each of their brokers.
0 votes Thank Flag Link Wed Jan 12, 2011
Commissions are negotiable...so this will vary. Some companies charge a flat fee, others offer a fee based on the amount the house sells at. Depends on who you hire. :) Hope this helps...
0 votes Thank Flag Link Wed Jan 12, 2011
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