how do agents earn money?
Generally, the agents for both buyer and seller are given a commission for their services, which is a percentage of the overall value of the real estate transaction. Generally, the commission is split 50/50 between agents.
While policies vary, depending upon the local company you work for, generally you would share a part of your percentage with the broker, in remuneration for the services and support that they provide to you to assist buyer or seller throughout the home buying process, the overall advertising and marketing they do to gain prominence in the market, which you gain advantage from through associating your name with the company.
Depending upon your broker, you may also have the opportunity to earn money if your customer takes advantages of any homeownership services the broker offers, such as title, home warranty, and more.
It’s important to remember that as an agent, you are not paid a salary. Your success is based upon your ability to successfully represent buyers or sellers. Depending upon the market, your ability, and the ability for both you and your company to gain new customers, you may have a very stable flow of income. Or, it may be affected by seasonality, with very busy periods of very high income, and slower periods with relatively lower income.
If you have conviction and are willing to invest time and effort in your real estate career, the rewards can be great, both in terms of the money you earn and the type of life you lead. If you want a job with fixed hours that pays a regular amount on a standard schedule, real estate may not be the best career for you.