Many people do not fully understand how Real Estate agents get paid. Regardless of the brokerage the real estate agent is with, they typically get paid the same way. They earn a commission from doing one of 4 things:
- Listing a property for sale – When listing a property for sale, the SELLER PAYS ALL OF THE COMMISSION. Keep in mind – no commission is paid unless the agent can bring the seller an acceptable offer and navigate the transaction through the process and successfully to closing.
- Representing a buyer – When representing a buyer, the BUYER PAYS NO COMMISSION. The seller typically agrees to pay the buyers agent a portion of the total listing commission. Just like listing a property for sale, agents do not earn a commission until they successfully navigate the transaction to a closing.
- Listing a property for lease (rent) – This is a similar process as listing a home for sale, except it is normally a shorter process as the prospective tenants do not need as much time to bring the deal to fruition. There is no home inspection period or mortgage loan financing contingencies. Instead of a listing %, agents who list properties for lease normally receive a commission of 1 months rent.
- Representing a tenant – Just like representing a buyer, the TENANT PAYS NO COMMISSION. The listing agent will normally offer 1/2 of 1 months rent to an agent who brings a qualified tenant.
Some agents charge other fees and lock their clients into exclusive agreements that are hard to get out of. Here at the SURE Sales Group – we only want to work with clients who want to work with us. We allow our clients to release themselves from agreements at any time for any reason. This establishes trust and holds us accountable to a high level of service.