How Realtors are Paid

As a consumer in the real estate market, you benefit from the services of an experienced Realtor throughout the home buying or selling process. But even though you may not be footing the bill, it's important that you understand how real estate agents are paid.

The sellers of the home agree to pay a commission to their real estate company based on a percentage of the home's sale price. This commission is then split with the real estate company that represents the buyers of the home. And finally, the real estate agents involved in the sale of the home are paid by receiving a share of the commission received by their respective real estate companies.

Did You Know:

• Realtors are self-employed, and receive no salary or benefits. They get no paid vacation time, insurance, company cars or expense accounts from their broker.
• Realtors are only paid for results—if and when they successfully close a property transaction.
• Edina Realty Realtors are paid the same whether a buyer purchases a home listed by Edina Realty or another broker.
• As independent contractors, Realtors have ongoing out-of-pocket expenses similar to those of any small business.

Business Expenses:

• all property advertising
• advertising and marketing of their services
• marketing materials and direct mail
• for sale sign installation
• lock boxes, open house signs
• Edina Realty Hotline
• MLS access fees
• computer hardware and software
• long distance, cellular and/or paging service
• postage and courier fees
• business cards, stationery, office supplies
• business insurance, self-employment tax
• continuing education courses
• personal assistant (salary, taxes)
• and, many pay monthly office rent