directly related;
Real estate agents and Realtors® traditionally have been compensated through a commission at the end of each sale, unlike professionals in other fields who may bill by hourly rates or earn a salary. However, recent changes in industry regulations may introduce more varied compensation structures, including direct payment options for buyers. For example, if an agent has worked with a seller or a buyer for months, they don’t get paid for the time spent if there is no transaction during that period. Agents receive a commission once the transaction goes through to settlement (closes) based on the selling price of the home. At that point, the commission is earned. The commission structure, traditionally negotiated between the seller and the agent, has typically amounted to around 5% of the sale price. New regulations may influence these negotiations, and some brokerages offer commission discounts to sellers. Historically, the listing agent and the buyer’s agent would split the commission, but this practice may evolve due to recent regulatory changes. Issues can arise. For example, sometimes the split might not be negotiated evenly. A seller could have agreed to pay a commission of 5% that, if further divided, the buyer’s agent would receive 2% while the listing agent receives 3% of the commission. Even though some agents are associate brokers, or brokers in general, all commission payments have traditionally gone through to the broker who’s managing the brokerage where the agent is working. From there, the commission is then split to the agent and the broker, according to the agreement that’s been made. The split will vary; sometimes, newer agents will earn a
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