You could have dealt with a large amount of estate agents but did you wonder how your property agent gets paid? You surely know of that all of the talk about commission, pc.s, fees, closing costs and so on. Are broken down at closing. However what are his exact earnings? The reality is that you aren’t the person that is paying your agent a commission.

It is interesting to grasp that the the guy who slogged so tough to trade or find your house isn’t getting as much as you suspect.

Whether or not it is buying or selling the agent brings a client to the table, and a deal is signed between the brokerage house and the client.

It may not always be an exact split but it is often close to half that goes to the broker who represents the vendor and the purchaser. The commission is then divided up between the homes, and after the brokers decide how much to pass on to the agent who really did the all leg work. Various factors are considered while finalizing the amount. The total experience he has in this field or in that market, the time the agent has spent with the company and the level of his productivity decide the amount he gets.

For instance an inexperienced representative may only get 30 percent of the cut where as a vet who brings in heaps of business, could get half or perhaps more of the proceeds.

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Some members find this deal extraordinarily advantageous because regardless of how much they make at the end of the month the amount they must pay remains fixed. For such new agents, the conventional split is more preferable as they may not be capable enough to make that fixed payment per month.

Also there are some factors that gobble the ultimate profit manufactured by the brokerage house and the representative. In case the brokerage house is a franchise, after every commission there’s a charge fee that must be paid.

And then a certain % that comes out of the commission which is typically paid by the vendor at closing. Another point open to discussion is how the commission can be divided. Your agent gets the money only after everyone else gets the money.

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