How does a real estate agent get paid?

A common misconception might be that real estate agents go to work all week and get a paycheck from their company every Friday. Another misconception might be that the agents company pays all their expenses or costs for doing business. Welltypically this is not the case, so we thought it would help to clear things up a bit by explaining how it really works.

Although there are many ways that real estate agents might be paid, the most common way is by selling a property and collecting a commission at the closing of a real estate sales transaction. Until an agent sells a property, they typically put in many long dedicated hours of work and provide professional services to their clients, while paying all of their own expenses. Youve got itcar, gas, computer, office, utilities, dues, membership fees etc. are all paid up front and out of their own pocket. Then theres the element of time. No hourly wageno guaranteed weekly paycheckonly commission when a property is sold and closed. Basically, they only get paid when they sell.

You might ask yourself the question; would I be willing to go to work all week if I werent sure that Id get paid on Friday? Wellreal estate agents do it everyday! They spend their money and time up front in advance, with speculation and anticipation that theyll make a sale and get paid at closing.

With this in mind, the next time you're in the market to buy or sell real estate, you'll have a better understanding of the time, effort, dedication and expense that is involved with being a real estate agent. The real estate agent takes the risk...while you get the benefits from their knowledge, experience, and hard work!