HOW REAL ESTATE AGENT COMMISSIONS WORK - KEVIN WARD
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- Опубликовано: 17 окт 2024
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Real estate commissions are 100% negotiable. The usual full service commission is 5-6%. A discount commission is 3-4.5%.
A Flat fee brokerage charges a set fee (a percentage of the sales price) instead of a commission. This is paid upfront whereas full service commissions are paid out of escrow at closing.
Commissions are typically split between the listing broker(seller’s side) and the selling broker (buyer’s side). The broker owns all commissions because he owns the listing. The broker pays the agent his cut of the commission (usually a 70-30 split between broker & agent).
When the listing broker puts a listing on the MLS and offers a cooperative offer of commission, it’s traditionally a 50-50 split between the listing side (3%) and the selling side (3%).
Only licensed agents and brokers can get paid in a transaction.
How are referral fees paid? A 30% referral fee (taken out of the listing side of the commission) goes to the referring broker.
Real estate commissions are worth it because clients are paying for the value of the service that a skilled agent delivers. When a skilled agent nets his client the most money, this more than covers his commission.
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Thank you for the kind words! As a fellow realtor, it's wonderful to connect with someone who appreciates a clear and concise explanation.
Hello Kevin, 70% of 15k is 10,500. So no one may think there is other fee involved. 😃 good info.
I wish my first Real Estate Broker explained it like you did. He did not go into as much detail. This was very helpful. Thank you. - TAV ❤ 🇺🇸
So glad I found your Chanel. You're extremely knowledgeable and well spoken. Definitely can trust what you say. I'm learning a lot. Thank you!!
Thank you for this breakdown I am interested in becoming a licensed Real estate agent and before I take any classes I wanted to know how I would make money and I think this gave me a General guideline.
Hi there, I am brand spanking new to this & will start my first day at a real estate company here in Dubai, super excited & I wrote down a ton of stuff from your videos!
I just found your channel! I'm so excited.. I'll be watching every single video!
What kind of screen is that? I need one, thanks. Good content
Studying to be a real estate agent, and this information really helped me.
I know This is an old video but I’m just going to say for new agents or people new to real estate the broker part might be confusing but that’s because in Illinois instead of salesperson we are called brokers but we still hang our license with a sponsoring broker. Illinois doesn’t use salesperson anymore
Mr. Kevin Ward all my questions have been answered. Thank You so much!
If a buying agent and a selling. Agent work under the same broker, does the broker take commission twice, or do they do like a 20/40/40 split
Thank you for the information! I am currently studying to become a real estate agent in California and I am loving watching and learning from your videos!
How’s your experience going?
@curtiserecacho1401 I've failed twice now, it's really hard for me, I thought I was doing so well, I don't understand where I messed up and what I'm not learning right. I've taken a break, I'm thinking maybe I need to try again soon, but my confidence feels shot. Both times I felt I did great until I saw the results
Excellent explanation, I have been a full time real estate agent also a broker associate for the last 22 years and Im thinking on going independent.
If you have any words of advice for a beginner who is truly striving to become a real estate agent, please do share! I’d love wisdom from those who are experienced :)
Is this the case for most States (California)?
Great content Kevin. What if I represent a buyer directly buying from a developer. Or I represent the developer. What will be the split in this situation? Still around 6% ? Would I be the only agent in the mix? Help would be appreciated.
Awesome detailed explanations. Thanks a lot.
Thank you for the education, thinking of being a realtor.
You’ll suck 🤷♂️
How long does it typically take for a broker to pay his sales agent after a closing. Is there a customary time or it’s just whenever they get around to it.
Many pay them at the closing table through a commission disbursement agreement and others will pay usually within a day or two. It should not be days or weeks ever.
I am just starting with Wyndam and Destination and you have to take the PSI Timeshare test it’s only 35 questions but it’s all new language to me so I wanted to see if I can get some tips
What does a listing agent do when the seller is asking too much or too little for there home
This is residential. Commercial RE the percentages should be 8% to 10% for a numerous reasons. The timeline in commercial is many times extended, there are all kinds of contingencies, etc... Commercial can be very complex and drawn out, that is why Commercial should bring in a higher commission, plus there are and can be very expensive costs in Commercial RE!
My broker is with Remax. She said 3% is her fee and wants us to tell her how much we should set the Buyer comission. Could I set the comission at 2% for another Remax agent and 3% for any other company? Our agent says we need to go with 3% for both seller and buyer agents to get the most offers.
I like you sir. Informative with out pushing your ego
70% of 15k is not 9,500 it’s 10,500
Hi Kevin. I certainly enjoy your utube videos - informative, interesting and on point. I live Victoria, BC, Canada. As a buyer how can I find a fantastic top producing agent? To be honest as a seller I have sold all properties that I have owned.
Kevin now I got confused, how come the Boker will have less (30%) than the agent (70%), if he pays the agent? You just said that the commission first belongs to the broker who then pays the his agent.
I have a Hyundai Palisade, It is a great car! I love it. AND I enjoyed your you tube presentation! Thanks
Great video I am in the process of getting my license next month. I used to work as a MBenz service tech and all the service engineers drove TOYOTAs lol
Yota Gang 🤙
What is the 3% for?
I never understand why are there 2 agents, one agents representing the seller and the other representing the buyer when the listing agent can take care of both the seller and buyer.
Great video. I just got my license 😊 to understand what nobody tell...thanks😊
Can you give me an advice a broker work with at Brooklyn nyc area
Great information. Thank you
If a mortgage is paid off does the broker include the loan amount in calculates his fee ?
Good class Kevin, thanks
So a little confused about the referrals....in this example are you saying that 30% referral fee goes to the broker, why not the agent since the agent was the one referred? So my understanding is the broker gets 30% off the top of the 15k which is the $4500 and the broker also gets his 30% cut of the 70/30 split? I dont understand why the broker gets the referral fee.
hey Jason, where I am in TN (an I'm sure other places), in order to practice we must be working under a primary broker. When I work a deal, my split with my broker is how my office gets paid and is able to operate. I have no other office fees or any other fees required to my office so my contribution is how they keep the lights on etc. Some offices may have a monthly fee or payment which allows agents to keep more of their commissions. - To your other question about a buyers agent, commissions should be secondary to achieving your clients best deal. That will earn you more business than not fighting for their best value or interest and then the client finds out you were only looking out for yourself. A common phrase in business is that a happy customer will tell 2-3 people but an unhappy customer will tell 10. - Best of luck to you!
awesome presentation!!
what about state, federal Tax + independent contract tax. In CA most of us pay 51.3% Tax on gross income.
So how much does the seller get from this equation
How do you find the best and most experienced agent to work for as a seller?
Thanks this was very informative.😎
talk more about industry standard splits and things to consider. what's a good split?
Thank you very clear in your subject. I got a lot out of it. Thank you.
Nice video on Real estate commissions... I really enjoyed this video.
Great video!
Love this!! It really helps a consumer understand!
Thankyou so much❤
So if someone sells 5 houses with no commissions then there laundering money?
10/10 insight. I love it 😀
muito boa as sua aulas caro amigo Kevin
Can you please make a vedio on who are associate brokers , what is their role, what is their commission split etc etc....BTW thanks for nice content
Really helpful, love your channel
Wow this was sooo helpful you have a new subscriber
YOU ARE THE BEST! THANK YOU!
Thankyou!!
Top man! Kev you’re great!
What happens if the seller agent is representing the seller and brings the buyer
Watching from Uganda
Kevin you the best
Am still wondering where this video has been hiding from me all along...got you well bro
Lately, I have seen a listing broker gets 6% commission from sellers, keeps 4% as and offers 2% to buyer's brokerage. Is this a trend?
just depends on the realtor, but usually 3% each, always negotiable though!
This can be very confusing. In Oregon, you are classified and acknowledged as a "Broker" not an agent. It is very difficult and extremely hard to attain a license if you are knew to this industry. However, Oregon did away with the "agent" addressee. Same concept though, because you still come under a PB and have to maintain a Brokers' license the first 3 years of licensure. You do work under most Brokerages first 6 Transactions, of course you are called "Broker" in the State of Oregon. But you are correct Kevin in your information. The commissions are not typically but always grounds for questions to understand what is happening.
I had a realestate guy tell me that Broker and Agent are sore of interchangeable in Washington State.
I’m in Illinois and we are called brokers. I just got my license and it is a brokers license
Question: I am new so trying to better understand this concept: What incentive does the buyer agent have to get the house price lowered to provide value to his/her buyer of the house if the lower the price goes the lower the commission that buyer agent will receive at closing? Not being greedy...just trying to better understand. :-)
The buyer's agent does not have any financial incentive to get a lower price other than if it helps close the deal. If there is no close there is no commission at all for either agent.
We agents have a fiduciary responsibility to our clients. Our job is to represent them and look out for their best interest, not our own.
My goal as a buyer’s agent is to get my clients the best deal possible. My goal as a listing agent is to get the most money in my clients’ pocket! If my clients are happy with my services, they will continue to use me in the future and will recommend me to their family and friends!
That’s how you create a successful RE business!
Do you ever think to say simple goals instead of continuously repeating the same things?
Number of sales doesn't mean a realtor is good. Number of satisfied clients should be the measure.
technically a provisional broker is the term for a person who is new......then Broker then Broker in charge
I thought it was 3%?
Its irrelevant to the seller on how commissions are split up. lt really doesn't matter if it goes to the queen of England. lts still all coming out of the sellers pocket and the commission costs should be considered criminal...
That was confusing
Top
Nice
The problem is the way that real estate agents market themselves is "trust me bro". And everyone and their cousin has a realtor license.
Awesome
Should be a FLAT RATE!!!! The cost of selling a home is fking ridiculous !!!
WTF? THERES A BAZILLION WEBSITES AND BROKERS THAT CHARGE A FLAT RATE!!! It’s just like any other business. Just like with your car you can go get your car repaired at a dealership by a certified mechanic or you can go to the shady looking shop behind the 7/11 where all the other cheapies go. Or you can fix it yourself. I don’t understand where this idea that you have to pay 6% or even use a broker comes from.
There should be more commission for agents
New agent
I get my license Monday given I pass my test!
Brendan Adams did you pass?
Mish Ca Yes, I did! Lol
How has it been going so far?
@@OhHiMish CONGRATUALATIONS!!
What classes did you take and where did you register
Loovvvee it
Stopped watching at 1:48. No explanation of what a broker is. Is that an agent? Also 6% commission having its roots in Europe “going back hundreds of years”. Facts please. Examples? Proof? Skeptical of the claim.
How do Real Estate agents feel that they deserve 6% of the sales price of $30,000??? What a RIP OFF!!!
Tell me do u know anything about contracts, contingencies, clauses, fair housing law thats just the tip of the iceberg plus finding u home to ur liking or marketing it to people to get a sale open houses cold calling u cant say someone doesnt deserve something if u dont know anything about the job
And if u feel like its unfair stop complaing and go be an agent it isnt that ez
Commission seems like a scam lol
This is a great educational video...thank you.