How Realtors get paid

Most Realtors work on contingency: they do not get paid until a client buys or sells a home. The sales commission is their paycheck, compensating them for their time and covering their expenses (such as advertising, automobile, office equipment and supplies, and utilities).

Typically the buyer’s and seller’s agents each receive 3 percent of the sales price. But your Realtor does not usually get the entire 3 percent—it is split again with his or her real estate office.

  • Buyer: Most real estate services are paid for from the seller’s proceeds. Approximately 25 percent of the time, however, the buyer pays a portion of the commission. The buyer’s portion of the total commission is usually around 0.25 to 0.5 percent of the purchase price.
  • Seller: Traditionally the seller pays the real estate commission for both the selling and the listing agents (typically a total of 6 percent of the sales price). Gutierrez Real Estate Group will detail this expense and any other selling costs (such as taxes) in our initial presentation to you.