Real estate agents, commonly referred to as REALTORS®, are professionals who help people buy and sell real estate, such as homes and rental properties. Each real estate agent sets their own fees and commission rates, so the amount of money they charge depends largely on the market and the services they provide.
The primary source of income for real estate agents is the commission they receive when they help someone buy or sell a property. These commissions are usually split between the agent and a brokerage.
- For buyers, commission rates are typically around 2-3%, paid from one or both sides of the transaction.
- For sellers, commission rates vary by market, but generally range from 5-10%.
In addition to commission, real estate agents may also charge for other services such as:
- Marketing and advertising fees: Agents often charge a fee for marketing a property and advertising it to potential buyers.
- Transaction fees: Agents may charge a fee to cover administrative costs associated with the sale.
- Negotiation fees: Some agents charge a fee for negotiation services, such as helping buyers get a better price.
Real estate agents may also charge a flat fee for certain services, such as writing a purchase offer or providing legal advice.
The amount of money real estate agents charge varies depending on the services they provide, the market, and the type of transaction. Commission rates typically range from 2-10%, and additional fees may be charged for marketing, advertising, and other services.