From listing questions, to who ends up actually paying the real estate agent for his/her work, this page goes over the fundamentals of real estate to ensure you have a set of facts to work with as you embark on the process of buying or selling your home.
Q) Who pays the Real Estate Agents?
A) The Seller has a written contract with his Listing Agent that determines the percentage of sale price paid to the Listing Agent. The second clause after that determines how much of that he/she splits with the Agent bringing the Buyer. So short answer: The Seller. The percentage varies, but it is generally somewhere between 4-7% of purchase price. The Agent then splits a portion of his/her gross commission with his Brokerage, and then pays taxes on the net amount.
Someone with a Broker’s License has to undergo additional education, and testing. One can have a Broker’s license, without acting as a Broker. It takes 5 years of active real estate experience, or like experience to qualify to take the Broker’s Exam.