HOW REAL ESTATE AGENT COMMISSIONS WORK - KEVIN WARD

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Real estate commissions are 100% negotiable. The usual full service commission is 5-6%. A discount commission is 3-4.5%.

A Flat fee brokerage charges a set fee (a percentage of the sales price) instead of a commission. This is paid upfront whereas full service commissions are paid out of escrow at closing.

Commissions are typically split between the listing broker(seller’s side) and the selling broker (buyer’s side). The broker owns all commissions because he owns the listing. The broker pays the agent his cut of the commission (usually a 70-30 split between broker & agent).

When the listing broker puts a listing on the MLS and offers a cooperative offer of commission, it’s traditionally a 50-50 split between the listing side (3%) and the selling side (3%).

Only licensed agents and brokers can get paid in a transaction.

How are referral fees paid? A 30% referral fee (taken out of the listing side of the commission) goes to the referring broker.

Real estate commissions are worth it because clients are paying for the value of the service that a skilled agent delivers. When a skilled agent nets his client the most money, this more than covers his commission.
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[javiermorales]

So glad I found your Chanel. You're extremely knowledgeable and well spoken. Definitely can trust what you say. I'm learning a lot. Thank you!!

[davidegomez]

Hello Kevin, 70% of 15k is 10, 500. So no one may think there is other fee involved. 😃 good info.

[theodorevegh]

I wish my first Real Estate Broker explained it like you did. He did not go into as much detail. This was very helpful. Thank you. - TAV ❤ 🇺🇸

[flawlesslady]

Thank you for this breakdown I am interested in becoming a licensed Real estate agent and before I take any classes I wanted to know how I would make money and I think this gave me a General guideline.

[robertoospina]

Number of sales doesn't mean a realtor is good. Number of satisfied clients should be the measure.

[ShaheedahHill]

What kind of screen is that? I need one, thanks. Good content

[OhHiMish]

Hi there, I am brand spanking new to this & will start my first day at a real estate company here in Dubai, super excited & I wrote down a ton of stuff from your videos!

[JasonPugao]

Thank you for the kind words! As a fellow realtor, it's wonderful to connect with someone who appreciates a clear and concise explanation.

[johntitterton]

Stopped watching at 1:48. No explanation of what a broker is. Is that an agent? Also 6% commission having its roots in Europe “going back hundreds of years”. Facts please. Examples? Proof? Skeptical of the claim.

[Jason-moup]

This is a great educational video...thank you.

[tkstanford]

This is residential. Commercial RE the percentages should be 8% to 10% for a numerous reasons. The timeline in commercial is many times extended, there are all kinds of contingencies, etc... Commercial can be very complex and drawn out, that is why Commercial should bring in a higher commission, plus there are and can be very expensive costs in Commercial RE!

[MikeHawk_]

Its irrelevant to the seller on how commissions are split up. lt really doesn't matter if it goes to the queen of England. lts still all coming out of the sellers pocket and the commission costs should be considered criminal...

[itssimplykimm]

I just found your channel! I'm so excited.. I'll be watching every single video!

[S.S]

I never understand why are there 2 agents, one agents representing the seller and the other representing the buyer when the listing agent can take care of both the seller and buyer.

[robertoospina]

The problem is the way that real estate agents market themselves is "trust me bro". And everyone and their cousin has a realtor license.

[datsunmadman]

Great video I am in the process of getting my license next month. I used to work as a MBenz service tech and all the service engineers drove TOYOTAs lol

[diandrawright]

I know This is an old video but I’m just going to say for new agents or people new to real estate the broker part might be confusing but that’s because in Illinois instead of salesperson we are called brokers but we still hang our license with a sponsoring broker. Illinois doesn’t use salesperson anymore

[presidualist]

So if someone sells 5 houses with no commissions then there laundering money?

[oddpotential]

Great content Kevin. What if I represent a buyer directly buying from a developer. Or I represent the developer. What will be the split in this situation? Still around 6% ? Would I be the only agent in the mix? Help would be appreciated.

[yusufcelik]

Can you give me an advice a broker work with at Brooklyn nyc area