How My Fees Work

Interestingly enough, the real estate brokerage fee is negotiated between the seller and the listing agent, which means, our fees are paid by the seller. That’s right! The fee is negotiated at the time the listing is signed. ​​​​​​​​
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The industry standard is a 6% brokerage fee. But, that amount is usually split between two agents. I say usually because at times, the listing agent may operate as both the listing agent AND the buying agent, in which case, they would be entitled to the full amount. ​​​​​​​​
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As independent contractors, we have to absorb many costs, similar to business owners. First we pay our respective brokerages a nominal fee from our commissions, we pay all of our marketing costs and just like everyone else, we pay Uncle Sam! The general perception is the the total percentage paid out is very high, and it may seem like a lot but it gets watered down pretty good. ​​​​​​​​
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For example, a 500k sale would yield 30k in gross commissions. The 30k is split between both agents. ​​​​​​​​
With 15k, each agent has to pay out his/her brokerage, marketing costs and taxes, the total amount brought home is usually 1% or less. Did you know that the average REALTOR sells about 4 or 5 homes a year? ​​​​​​​​
Surprising right? It’s not all the glitz and glamour that the TV shows make out out to be. You have to be passionate to be successful in this business. ​​​​​​​​
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If you’d like to discuss real estate send me a DM or go to my bio to book a consult or call (559) 905-0910.