How a REALTOR Gets Paid

Like professionals in other sales-based industries, the Realtor pay structure is based on commissions derived from successful transactions. Here’s how it works:

At the close of the transaction, the seller’s agent splits the predetermined commission with the buyer’s agent as compensation for delivering a buyer. This split is usually about half the total commission. It is the responsibility of the seller to pay the total commission and typically happens at the time of the successful close of escrow.

The following is a comprehensive list of what your realtor’s commission covers:

Listing your home in the MLS.
Marketing the property.
Negotiating the price and terms.
Making price recommendations.
Discussing all options and potential scenarios once an offer is made.
Following the transaction through the closing once an offer is accepted.
Facilitating the ordering of title work.
Dealing with home inspection results and handling any negotiations.
Coordinating and attending the closing.