Realtor Fees

There are many parties needed to have a successful real estate transaction; the realtor representing the seller, one representing the buyer and the finance person who helps the buyer get a loan. The realtor for the buyer and seller is sometimes the same person. When this occurs, it is referred to as double-ending the deal. What many may not know is how the realtor gets paid and who decides how much commission the realtor receives at the end of the deal.

For the most part, the realtor representing the seller, known as the listing agent, signs a listing agreement contract that determines how much commission is awarded at the end of the transaction. Usually this fee is anywhere from 3-6% of the total price and comes from the seller's profit. This fee is then split with the buyer's agent. This fee is sometimes less than 3% and sometimes more than 6%, but for the most part, it usually falls within this range.

The split is, more often than not, 50/50 between the two agents. In the event that one agent represented both parties, the entire percentage agreed upon goes to that agent. With many different factors going into the fees, it is good to know how much the realtor gets paid when you are looking to buy or sell a house.