of 5% from the sale price, but some brokerages have commission discounts for the sellers with whom they work. Essentially, the listing broker and the buyer’s broker will split the commission. That can bring forth some issues. 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 broker would receive 2% while the listing broker receives 3% of the commission. Even though some brokers are associate brokers, all commission payments are instructed to go through to the broker who’s managing the brokerage where the broker is working. From there, the commission is then split to the broker and the agency, according to the agreement that’s been made. The split will vary; sometimes, newer brokers will earn a small portion of the commission compared to the experienced or successful brokers who generally sell more expensive properties or homes.
PAYING THE COMMISSION ITSELF
The overall commission is paid for at the notary by the seller. The fee is taken from the proceeds of the sale of the home or the property. However, the buyers pay the commission because they’re literally paying to purchase the house, while the sellers take the commission for the broker into account during the process of determining the price for the listing. From there, the commission is then divided during the notary process between the buyer’s broker Agency and the listing broker’s Agency. Afterward, the brokers who made the real estate sale are further paid by their Agency.
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