By: Louis & Carmela Kapeleris

Who pays a real estate agent is a very common question.

Tags: Who pays a real estate agent is a very common question.

Who pays a real estate agent is a very common question. To understand who pays the real estate Fees -- whether it is the sellers or buyers or both -- first take a look at how real estate agents are paid and how they share cooperating commissions. 

All fees paid to a real estate agent pass through the Primary broker.
A portion goes to the listing Brokerage and then a portion goes to the listing agent
Another portion goes to the selling Brokerage and then a portion to the selling agent.
That Commission is split 4 ways so far.
Off the top - a percentage goes to the franchise entity. And then Assuming that referral fees are also need to be paid out........ Splits between brokers and agents vary a lot!

Only a Broker/Owner can pay a Real Estate Commission.How Are Real Estate Agents Compensated by the Broker/Owner?
Some agents can receive as little as 30% to 40% of the total commission received by the brokerage. From that amount, other fees may be deducted such as advertising, sign rentals or office expenses.
Top producing agents might receive 90-95% but pay the Broker/Owner rental desk fees of $1200 or more a month. 
For starters, real estate agents enter the profession from all walks of life with varying levels of education & motivation. Some become a real estate agent for the money, while Others want to be part of a profession that helps others to accomplish dreams. For many, a real estate career offers the opportunity to be your own boss. 

So How Much Does an Average Real Estate Agent Earn? On average, according to Salary.com, most agents earn betoween $34,000 and $45,000 annually.  

As the years go by, agents can rely on referrals from satisfied clients to continue building their business and to service and attract more clients.

For more details email me at info@kapeleris.com or call 416-543-6887