How realtor and broker make their commisions? thanks?
Answer:
well from what i understand they make comission. and the appraisers have a flat fee per type of house, same w the inspectors. the realtors usually make between 2-3%, but i dont know about how much the brokers make. probably about the same persentage.
they make commissions off a percentage of the purchase price (Realtor) or a percentage of the loan (Loan Broker)
Realtor and broker can be the same thing.
By selling a piece of property.
Commissions on sales are the main source of earnings of real estate agents and brokers. The rate of commission varies according to whatever the agent and broker agree on, the type of property, and its value. The percentage paid on the sale of farm and commercial properties or unimproved land is typically higher than the percentage paid for selling a home.
Commissions may be divided among several agents and brokers. When the property is sold, the broker or agent who obtained the listing usually shares the commission with the broker or agent who made the sale and with the firm that employs each of them. Although an agent’s share varies greatly from one firm to another, often it is about half of the total amount received by the firm. Agents who both list and sell a property maximize their commission.
Income usually increases as an agent gains experience, but individual motivation, economic conditions, and the type and location of the property also affect earnings. Sales workers who are active in community organizations and in local real estate associations can broaden their contacts and increase their earnings. A beginner’s earnings often are irregular, because a few weeks or even months may go by without a sale. Although some brokers allow an agent to draw against future earnings from a special account, the practice is not common with new employees. The beginner, therefore, should have enough money to live for about 6 months or until commissions increase.
you pay for it dude
they bump up the price to increase there commission
realtor - percentage of the house value
broker/loan officer - usually a percentage of the fees charged to you on your loan.
Broker is the same as realtor, except broker has a more specialized license then a realtor (they took another test for a higher license). It is commissioned based. If a person sells a house, they get a certain percentage of the sale price. It's decided in your agency or with your clients what that percentage will be.
A realtor will agree to represent the seller for a portion of the sale price.usually 6 or 7 percent. The selling realtor will list the property into the database realtors use (MLS) along with how much her listing rate is. The buyers agent will split this amount with the selling agent. If the agent is private then they get the entire portion. If they belong to a national brokerage, then half goes to the national brokerage.
Every deal can be different, but here is plain vanilla by the book transaction:
In a typical transaction, there are 2 agents working for 2 different brokers. A typical commission on the sale of a property is 6% of the selling price, the commission comes out of the price of the house (seller is paying the full 6% commission, buyer pays no commission).
Of that 6%, it is split between the 2 agents and the 2 brokers. Brokers get the 3% and turn around and "pay" the agent 1.5%, so in this transaction, each party gets 1.5% As you can see, it pays to be the broker! They will get 1.5% of each and every sale or listed property that any of their agents help a customer buy or sell. They don't have to be directly involved to get the commission. They automatically get it as the broker because they are responsible for the actions of their agents and must know the laws. If an agent royally screws up it can jepordize the broker's license also.
If agents are smart they will go for their broker's license as soon as they can and set up their own little empires.
A Realtor works for a Broker. The Realtor represents either a buyer or a seller.
As an example if the Realtor represents the Buyer and the Buyer buys the property. The sale is made and the Broker and Realtor split a 6% commission or ?%. The seller has to pay the commission in most cases to his Broker and Realtor of 3%.
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