How Does My Realtor Get Paid

If you’ve ever wondered how real estate agents make money, you’re not alone. Whether you’re buying or selling a home, it’s important to know who pays your Realtor, when they get paid, and what they actually do to earn that check.

Realtors aren’t paid by the hour or on a fixed salary like some jobs. Instead, most agents only get paid after a home is sold. Let’s look at how the process works and why that commission helps you get the best possible service.

How Selling a Home Works With Commission

If you're selling your home, one of the first things you'll do with your listing agent is talk about their commission rate. This is usually a percentage of the final sale price of your home. It’s written into your listing agreement.

So if your home sells for $300,000 and the commission is 6%, that would be $18,000 in commission fees. That number might sound high—but here’s what most people don’t realize: the seller's agent doesn’t keep the whole 6%.

Here’s how it usually breaks down:

• 3% goes to the listing agent and their brokerage
   
• 3% goes to the buyer’s agent and their brokerage
   

And even that 3% is often split again between the agent and the brokerage they work for. So your agent might actually take home 1.5% or less after all is said and done.

Commission rates are not set in stone. They may vary based on your location, your home's value, or your agent's services.

Buying a Home? Here's the Good News

If you're a buyer, you’ll be glad to hear this: you usually don’t pay your agent directly. When you buy a home, your agent gets paid through the seller’s commission agreement.

So when the seller pays that 6% commission, half of it goes to your agent for helping you find and close on the home. This is one of the reasons it's smart to work with a buyer's agent. You get professional advice and support, and it doesn't cost you anything extra!

Working with a buyer's agent can help you:

• Understand the market
   
• Tour homes that meet your needs
   
• Make a smart offer
   
• Avoid common mistakes
   
• Navigate inspections and paperwork
   

Best of all? You get expert help without paying out of pocket.

Who Really Pays the Commission?

Technically, the seller pays both the buyer’s and seller’s agents. But because the commission is part of the final sale price, some people say that the buyer pays indirectly. That’s because the buyer is paying for the home, and some of that money goes to agent commissions.

Still, it’s important to know: as a buyer, you don’t write a check to your agent. Their commission comes out of the closing funds, which are handled by the title or escrow company.

What Happens If the Sale Falls Through?

One of the biggest differences between real estate and many other jobs is that agents don’t get paid until the deal is done. If a deal falls apart halfway through—for example, because of a bad inspection, financing issues, or a change of heart—the agents often walk away with nothing.

Even if they’ve already:

• Shown multiple homes
   
• Paid for marketing and photography
   
• Spent time negotiating
   
• Gathered paperwork and disclosures
   
• Coordinated appointments and follow-ups
   

That’s why a good Realtor works hard to keep your deal moving forward—because their paycheck depends on a successful closing. 

What Does a Realtor Really Do to Earn That Money?

Real estate agents wear a lot of hats, and they do much more than most people realize. Here’s just a glimpse of what’s going on behind the scenes:

For Sellers:

• Pricing the home based on local trends
   
• Hiring professional photographers and stagers
   
• Marketing the home online and offline
   
• Hosting open houses and private showings
   
• Reviewing offers and helping negotiate the best deal
   
• Coordinating inspections, repairs, and appraisals
   
• Handling contracts and making sure deadlines are met
   

For Buyers:

• Helping you get pre-approved with a lender
   
• Finding homes that match your needs and budget
   
• Setting up tours and providing local insight
   
• Writing strong offers that stand out
   
• Explaining each step of the buying process
   
• Negotiating repairs or credits after inspections
   
• Communicating with lenders, sellers, and attorneys
   

It’s not just about selling a house—it’s about guiding people through a huge, often emotional, financial decision.

Can Commissions Be Negotiated?

Yes, they can. Commission rates are not fixed by law. Some agents may be willing to negotiate, especially if:

• You’re selling a high-value home
   
• You’re both buying and selling with the same agent
   
• The market is slow and they want the listing
   
• You're listing multiple properties
   

But remember: a lower commission might mean fewer services. So always ask what’s included in the agent's fee. You want to make sure you're still getting the experience, marketing, and attention you deserve.

Final Thoughts

Whether you’re buying or selling, knowing how your Realtor gets paid helps you make better choices and feel more confident in the process.

A good Realtor isn’t just there for the paycheck—they’re there to protect your best interests, handle the hard stuff, and guide you to a successful closing. When they do their job right, you win.

Let’s Talk About Your Next Move

Need help buying or selling a home? We’re ready to work hard, walk you through every step, and help you make the most of your real estate journey. Let’s chat and get you moving in the right direction!

Contact us today to get started!