Real estate commissions explained

This article explains how real estate agents are paid through commissions, which are a percentage of the sale or lease price specified in the representation agreement. The commission is typically paid by the seller or landlord, and split between the buyer and seller agent or leasing and listing agent. The commission covers a wide range of services including market research, marketing, negotiating skills, paperwork, and paying brokerage fees. Buyer or leasing agents' commissions cover time spent showing properties, staying on top of market trends, advising buyers, introducing them to other professionals, and handling paperwork. The article emphasizes that an agent's commission is their only income, and that different agents and brokerages have different commission structures. It advises that a full-service model may provide more comprehensive services and less stress for clients.