Who Pays the Real Estate Agent?

If you’re buying or selling a home, it’s important to understand how real estate

agents get paid. While many people assume that the agent’s compensation comes

from the seller, it’s actually much more complicated than that. Most real estate

agents work on commission, which is calculated as a percentage of the property’s

selling price and split between the agent and broker. In some cases, buyers can also

save on their agent fees by working with a brokerage that offers buyer’s rebates.

Most consumers don’t pay their real estate agents directly, but rather the brokerage

firm that employs them. The brokerage typically receives a portion of the total

commission, and then pays the agent according to their agreement. This can vary

from firm to firm, and in some cases, the agent may receive a larger share of the

commission than what was initially agreed upon by their broker.

The majority of New York real estate agents are paid on a commission basis.

Generally, this is around 6% of the total sale price of the property. The amount is

typically paid at the time of closing, and it’s split between the listing agent, the

buyer’s agent, and sometimes the broker as well.


Real estate agents have a lot to do when they’re working on a deal. They might have

to schedule tours of homes with prospective buyers, negotiate terms, handle

paperwork and oversee inspections and appraisals. In addition, they might be

responsible for marketing a listing and arranging open houses. This can take up a lot

of their time, which is why it’s important for them to be compensated for their

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Many homebuyers may be surprised to learn that the real estate agent’s

commission is typically built into the selling price of the home. It’s important for

homebuyers to understand how their agents are paid so they can make an informed

decision about who to work with and what their expectations should be for service.

Unless they’re employed by a large company like Redfin, most real estate agents

are independent contractors who work on a commission-only basis. They don’t

receive a salary, and they have to save their own money for taxes. In most cases,

they have to file quarterly estimated taxes based on their income.


The simplest answer to the question of who pays the real estate agent is the seller.

However, as we’ve covered in this article, it’s a little more complicated than that. In

most cases, the agent will receive a portion of the commission that was built into the

sale price of the home, and then the buyer’s agent will give back a part of this

commission to the buyer at closing. This is a great way for buyers to save on their

real estate agent fees. By doing this, they’ll be able to afford the services of a topnotch

agent without having to pay full price. This strategy is especially useful for

first-time homebuyers who are trying to stay within their budgets.