This is how buyer’s and listing agents get their commissions.

Understanding how real estate agents are compensated is crucial in navigating the intricate world of property transactions. There’s often confusion surrounding the payment structure. Today, I’ll demystify the process, shedding light on the mechanisms behind buyer’s and listing agent’s compensation. Contrary to common belief, sellers don’t directly pay the listing agent. Instead, the compensation system operates through a series of negotiated agreements and transactions with the listing brokerage. Let’s delve into the specifics of how both agents receive their compensation and the underlying dynamics that drive this mechanism.

Feel free to watch the full video or use these timestamps to browse specific topics at your leisure:

0:00 — Introduction

0:40 — How a buyer’s agent gets paid 

2:22 — Why listing agents get paid through the listing brokerage

3:51 — The risks taken on by buyer’s and listing agents

5:56 — Wrapping up

The role of the agent is pivotal in bringing in the gross commission, fueling the brokerage’s operations. If you need further clarification on this process or seek a breakdown, feel free to reach out directly.