When you ask people about how to do real estate brokers get paid, there’s a wide variety of responses. Some are quick to point out that the commissions earned are typically high, but other people may be more interested in the specifics. Here’s a quick rundown of how they work and how much they’re worth.

how do real estate agents get paid

The simple answer is that real estate brokers and real estate agents work for an independent Realtor. Whether it’s a national broker or a regional broker, the broker earns their commission from the commissions earned when they successfully close a sale or help a client close on a purchase. This commission, which is sometimes referred to as the commission share, is often calculated as a percentage of the transaction cost. In other words, if the broker’s client bought a house for $200K, they receive a certain percentage of the cost.

This commission share is based on several different factors. The amount of commission earned is determined by the age and experience of the broker, whether the client was successful, how many properties were sold, the location of the client’s property, and any additional costs that may have been incurred. As is true with most commissions, the larger the client, the larger the commission.

The commission share can also be affected by the size of a commission paid. For example, a broker working to close a sale could earn a higher commission if the sale was more expensive and a lower commission if it was less expensive. The larger the size of the commission paid, the greater the amount of influence the broker has on the sale. This means that a large amount of money can be moved from one property to another, which can result in a higher commission.

Another thing that influences how much money real estate brokers make is the volume of sales that a broker manages. The more sales that a broker manages, the more likely the broker will earn a higher commission. Some brokers work exclusively with national Realtor companies, and others work solely with regional brokers. These large agencies pay their brokers in commissions that vary based on the number of transactions handled each month. For example, if a broker manages twenty sales for a national agency, then they receive a higher commission on each sale.

The next time you ask how do real estate brokers get paid, ask about the different ways that they make money from their clients’ transactions. You’ll find a wide variety of options out there. Many of the methods require time, patience, and persistence on your part.