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What are Real Estate Agent Commissions?

Answer:
Generally in business, everyone gets their cut, and

such is the case in real estate with Real Estate Agent commissions. Real Estate Agent commissions are fees associated with the sale of a house or property which are split, when applicable, between the agent for the seller and the agent for the buyer.

These commissions are paid out at the close of the sale and can vary in percentage from 2 to 6 percent, depending on the region of the sale and realtor’s agency. Oftentimes, a portion of the Real Estate Agent commissions goes to the agency for whom the real estate agent works, lessening the agent’s overall margin.

Real Estate Agent Commissions are designed to compensate the agent for their services of marketing, sales, and market experience which help ensure that the sale and subsequent purchase of a property is smooth for both sides of the transaction.

Please note, Realtor commissions are negotiable. If you are using a Realtor as a Buyers Agent then the seller usually assumes the commissions.


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