YodZiaN

Most of us wonder how real estate agents make money. The general idea that we have about the earnings of a Telluride real estate agent is that it comes from the commission he gets from the sale of a Telluride Colorado real estate property. Nonetheless, home buyers normally don’t preoccupy themselves with issues concerning the earnings of agents. However, it is important that you have a general understanding about this aspect of home buying as much as the money is part of the total amount that you have to raise to purchase your home property.

Generally the person selling a property pays the listing broker a percentage from the selling price. The listing broker, on the other hand, share part of the commission that he gets from the sales proceed through the MLS with other participating brokers who had contribution in bringing in the buyer of a particular property. The cooperating broker in most instances gets half of the entire commission.

If there is no cooperating broker who is involved in a particular transaction, then the entire commission goes to the listing broker. Hence, a transaction can materialize without a cooperating agent if home buyers come into the transaction unrepresented. This is possible in cases where the listing agent stands as the representative of both the buyer and the seller. This is also applicable in situations where the listing agent acts as facilitator for a particular property transaction who is not under the obligation to represent either the home buyer or the seller of the property.

The next layer of the commission sharing involves the splitting of their portion of the commission with the agents and sales executives who are working with them. In cases where the agent is also at the same time the broker, there will no longer be any further split up of the commission earned from the sale of the property.

The sharing of commission between and among the brokers and agents can be arbitrary although in most instances new agents get 50% commission. Agent’s commission that is less than the norm of 50% is generally unusual in industry standards. In fact, a seasoned real estate agent can earn as much as 60% to 97% as commission for the sale of a property. There are also instances where the commission follows an accelerated scale and the percentage increases with the number of properties that is sold through the agent. There is also an arrangement between the broker and the real estate agent where the latter gets the entire split commission and only pays the former a fee in lieu of a share in the commission earned from the sale of the real estate property.

There are also some states where homebuyers get rebates from the purchase of a real estate property. It is debited from the commission of the broker. The rebate will be credited to the buyer at the closing of the sale. It can be in the form of a gift card or any other form of monetary reward.