Commissions

Have you always wondered how a real estate agent gets paid? I think you should know, so I’ve broken it down for you.

Please note: this is how I work and every broker may have a structure variation, offer a different scope of services, or charge a different rate. (View chart)

 

A home sells for $200,000.

I earn a 6% commission.

Here is where the money goes:

$200,000 x 6%	=$12,000
My broker pays the buyer's broker 3% = $6,000	-$6,000
	=$6,000
My broker retains a percentage to cover office overhead and operating expenses and pays me the remainder, say 75%	-$1,500
	=$4,500
I deduct taxes, say 30%	-$1,350
	=$3,150
And subtract expenses, say $750	-$750
	$2,400

By selling your home for $200,000 I have earned a net income of approximately $2,400.

Each sale will vary in regards to expenses and referral fees but this always stays the same:

1. Every listing is an upfront financial risk for me.
There is no guaranteed return on my investment in the sale of your home. If your home does not sell, I am not paid, plus I am out the cost of my time and advertising. That is why I take a listing very seriously.

2. I charge 6%.
Agents charge different rates, but I’m a firm believer in the rule of thumb “you get what you pay for.” As a full service agent, I provide clients with a comprehensive marketing plan and a professional commitment to the home’s sale.

3. I charge all my clients the same.
Eugene is a small community. As much as I love them, if I start discounting my fees for family, friends or repeat clients, I wouldn’t be able to stay in business. Every single client is special and important to me. I work hard for everyone equally and promise to keep it that way.

4. I offer the buyer’s broker 3%.