How does commision work for a real estate career?
Posted on July 4th, 2010 in Renting & Real Estate | 3 Comments »
Looking4Edward asked:
I am thinking about getting my real estate license and I am just needing basic info on how it works as far as getting paid and just starting out. Any tips and advice. I am excited about this, so please do not try to discourage me.
thx
3 Responses
Thermage Stomach
you get paid if and when a closing occurs. the broker receives the commission from the closing and then passes onto you your share.
some brokers split commission with you and others let you keep 100% of commssion.
The difference would be how expenses are handled. If broker gives you 100% of commission then realtor is responsible for paying all expenses.
Expenses can be a lot so for new realtors it is nice to split commission and let the broker pay all the expenses.
Torrance Condos
on average, you will get 1.5% of the house’s sale price – 1/4 of the total commission and don;t expect to make too much your first couple of years – new agents rarely get many sales just starting out
Thermage Stretch Marks
Your pay will come in the form of commission. So, no closings no pay. 6% is the common in California. With that, your side of the transaction will get 3%, then you will split your 3% with your broker. This will depend on what split arrangement you have with your broker. If it is 50/50 then you will receive 11/2% of the transaction.
Its good to be excited about this, real estate needs good agents, so keep your chin up and keep moving forward. My concern at this point for you is that if your concerned about being discouraged, you may already be in trouble in this field. There are many many obstacles in this field. Have on hand from 6-12 months of reserves.