Jessica Keala

How Does a Buyer’s Real Estate Agent Get Paid?

If you have only ever worked for other people during your life, it might surprise you to know that not everyone is paid a fixed salary. In fact, most jobs that involve sales to any degree at all will not be paid a salary but would rather enable participants in the role to earn through commissions at this current point in time. Real estate is perhaps the biggest sales role that you could ever find yourself taking part in, and commission is a big part of how agents earn money without a shadow of a doubt.

Just in case you were wondering about how much money they earn, it generally comes up to around 1.5% of the sale price or a little higher or lower than that. As a result of the fact that this is the case, whenever you buy from leading real estate agents, it would be best if you factored this percentage into the sale price. One thing to note here is that this might incentivize realtors to make you buy a home for a lot more than it is actually worth just so that they can get a good commission, and that is definitely something that you should be wary of if you don’t want to overpay.

Suffice it to say that most realtors are going to be rather ethical about this however. After all, if you buy a house for $300,000, the real estate agent that helped you get the place will probably get around $4,500. That’s more than enough to compensate them for their time, and making you buy the place for more money would not give them enough to make it worthwhile.