Choosing a Realtor:
How are Realtors actually paid?



I sold real estate years ago and have for 22 years published a real estate newsletter which Realtors use as a marketing piece. I was disturbed to read your article about choosing a Realtor and how they are paid.

You are spreading misinformation with this article which will further distort people's views of how much Realtors make.

You said that a Realtor will get 100% of the commission on their own listing and 50% of the commission on someone else's listing.

In reality, the listing broker is the one who is paid the commission.
(You didn't even mention the word "broker".) IF, and that's a big IF, they pay out 50%, the listing/selling Realtor will get that. If two brokers are involved, each Realtor will get 50%.

BUT, many brokers don't pay out at that level and they may deduct fees for services they provide to their Realtors (such as computer usage, corporate advertising, processing fees, etc.).

In addition, the split between brokers is often not even depending on who has the listing.

Additionally, there are many real estate companies which charge rent for a desk or charge a monthly fee and the Realtors are paid on a different (often higher) basis.

People often don't realize that Realtors are paid on 100% commissions with no benefits or base salary. Out of that they have to pay their own expenses...phone, computer, advertising, marketing, car expenses, etc.

Your article also didn't mention asking the Realtor for referrals from his/her customers and checking in neighborhoods they like for the Realtor's signs. They also can call the local Board of Realtors for any complaints against that Realtor.



Information is for educational and informational purposes only and is not be interpreted as financial or legal advice. This does not represent a recommendation to buy, sell, or hold any security. Please consult your financial advisor.