Why Do Real Estate Agents Get Paid So Much?

Sep 26, 2022 | Real Estate, Seller Tips

Why Do Real Estate Agents Get Paid So Much?

If you’ve ever sold a home before, you’ve probably looked at the settlement statement at closing and thought, “Why do real estate agents get paid so much?”

First of all, most agents are required to pay their brokerage a percentage of their commission at closing – sometimes as much as 50%.

On top of that, most agents have to partner with referral companies or other agents in order to acquire new clients, which can cost an additional 35% of the commission.

In this worst-case scenario, agents are only getting paid 33% of the commission you pay.

So it’s no wonder why most agents don’t offer a discount. They can’t afford it!

The question is, why are you paying 67% of the commission to someone other than your agent?

If you’d like to save thousands of dollars by simply working with an agent who has a better business model, click the link to schedule a call.