How to Pay the Real Estate Agent

When it comes to real estate transactions, there are many different fees that can be

charged. Among those is the commission paid to the real estate agent. This fee is

typically around 6% of the sale price of the property, and it is often one of the largest

expenses associated with purchasing or selling a home. Many people have questions

about how these fees are calculated and paid. This article will explore some of the

most common ways that real estate agents are compensated, and it will also

provide some tips for negotiating these fees with a listing agent.

Do Real Estate Agents Get Paid Weekly?

Most real estate agents work on a commission basis. They do not receive a salary

from their brokerage, but instead, they earn their income from the commissions that

they earn on sales they complete. These commissions are paid at closing and are

split between the broker and the agent. In addition to earning a commission, many

real estate agents also earn bonus pay for additional services that they perform for

their clients, such as providing staging advice or holding open houses.


Real estate agents are often paid on a percentage of the sales price of the property.

The percentage that they are paid can vary depending on who they work for and

where they live, but most are typically paid between 2.5% and 3% of the final sales

price of the property. The percentage that the real estate agent is paid can be

negotiated with the listing agent and may be included in the agreement that the

seller signs. Also read

In general, the actual payment of the commission is handled through an escrow

company at closing. The payment is made from the proceeds of the sale and is given

to the listing broker, the buyer’s broker, and the individual agent.


When you are interviewing a real estate agent, it is important to discuss how much

they are charging for their services and to be clear about what you are looking for

from them. Some real estate agents will be willing to negotiate their commission

rate, but others may be unwilling or unable to do so. For example, an agent that

normally charges 6% of the final sales price of a property might be able to negotiate

with you down to 5%, but they might not be able to do so because their brokerage

would not allow them to do so.


Another way that real estate agents can be paid is through a flat rate, which means

that they are paid a fixed amount regardless of the sales price of the property. This

is often a less preferred method of compensation, but it can be useful for sellers who

are concerned about the potential for high real estate agent fees. In this situation,

the agent will typically charge a lower fee to the seller but will still need to earn the

same amount from the buyer’s side of the transaction in order to break even.