You already have some really good answers here. The bottom line is: not as much as most think! In most cases, not all..it is a multiple list situation, which means two companies share the total commission and then the agents each shares with their own broker. Remember, this IS a gross amount. We all have GREAT expenses to stay in the business...our required education, licenses, board memberships, board fees, advertising fees, marketing and mailing costs, open houses, luncheons, GAS, etc, etc, etc....if we work for a franchise, we pay franchise fees, if we work in Relocation, we pay relocation referralf ees, if we work with USAA buyers, we pay referral fees and company relo fees, if it's a referral from another broker, they get a cut too, if the company generates the lead, they pay us less....when it is all said an done...we probably work for less than minimum wage!!! If you are looking to get into the business...interview many companies and negotiate the best deal you can. Consider the costs involved to just be in the busness, before you make any money at all. If you are a buyer or seller..realize, your agent is working really hard for their money....and they are paying their expenses even when they are not making sales and closing deals... If you think sellers and houses are "upside down" right now..try being an agent!
Licensed Agent - Specializing in Co-op & Home Sales
Awarded 1st Place in Sales for 2008 and 2009
Weichert Realtors, H.P Greenfield
Their used to be a company that charged 2% called YHD or something like that but they went out of business a few years back. The other Realtors are talking about a law that prohibits price fixing, simple put you cant cooperate with other Realtors regarding charging a set amount for listings as its not fair to the consumer.
Century 21 Princeton Properties
New York State has nothing to do with either of these two negotiations. There is no law stating how commissions should be negotiated or split other than anti-trust laws which state that brokers as a whole cannot collude to fix commission rates. Brokers and agents can only speak of their own commission rates with consumers, what other brokers charge is their own business.
Oh, and another thing to think about, when a broker shares their listing with another broker via MLS or any other sort of co-broke, how the commission is split will either be negotiated by the two brokers or addressed within the actual listing agreement the broker and the homeowner sign.
If I can be of further assistance, please let me know.
If you are asking how are the commissions are split between the listing agent and the buyers agent on a single transaction? That too varies.
It is expensive to be in real estate. Although hard work has its rewards it is often forgotten that the agent had to spend a lot of money and time to get the commission check received! I have been very blessed in real estate but I can assure you if I looked at my hourly rate... it would be depressing:) Real estate is not for everyone.
Agents are self employeed many expenses are involved there is a difference between gross commission and net