When buying or selling a home, it’s common to work with a real estate agent, also known as a realtor. These professionals can assist in many aspects of the process, including pricing, marketing, and negotiating. However, it’s important to understand how realtors are compensated for their services. Specifically, you may be wondering how commissions are split between the listing agent and the buyer’s agent, as well as how that split is determined. In this post, we’ll explore the common practices and factors that affect commission splits in real estate transactions.
When a real estate agent lists a property for sale, they usually sign a contract with the seller that outlines the commission to be paid upon the sale. This commission is typically split between the selling agent (the agent who lists the property) and the buyer’s agent (the agent who brings the buyer to the property). The percentage split varies, but it’s usually around 50/50. However, it’s important to note that the split can be negotiated between the agents and can even be different for different properties or situations. Ultimately, the commission split is determined by the agreement between the agents and their brokers.
