I just bought a house for $420,000 and I want to know how much my real estate agent and the sellers real estate agent made on us, and how much did my loan agent make? Any ideas? I just want to know if the service I got was worth the money I paid.
How Much Did My Real Estate Agent Make?
Posted February 1st 2010 at 5:24 pm by Admin
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look at ur agreement w/ the agent or ur contract. everyone’s fees are noted. my agent received 7%. but fees are negotiable and there are many other factors that could affect the amount they receive. if u dont want to look at ur contract…just call them. they would have no problem telling u or letting u know what page to find the info.
Around $30,000. for everything, then again it depends on what percentage they charged.
Typically the commission is 3% to each side…but the agent has to pay his broker as well.
It should say on your closing statement. Mine does.
The sellers paid for your agent and their agent. You did not.
They each probably got 3 percent…12,600 each. As for the Loan Agent…man it’s usually like 1 percent plus all kinds of fees…it depends on the loan amount…
I doubt any service is “worth” those prices, but hey, what can you do? Write it off on the taxes and enjoy your horribly expensive home!!
As you can see from the other replies, the actual comission to your agent may vary. Whatever comission the seller contracted with the listing agent normally gets split between the seller’s firm and the buyer’s firm. Most likely your agent got around 1 1/2% of the purchase price. The loan originator’s firm mostly likely got around 1-2% with your loan originator getting a portion of that. The fees should all be listed on the HUD-1 as items paid – the realtor’s fees will show up under the sellers’ expenses. Were they worth that amount? Only you can answer that based on the type of customer service they gave you. If they stated in touch with you on a regular basis; informed you of what documents you needed to qualify for the loan, etc – then most likely yes they were worth it. No I’m not a realtor but I have have purchased and sold several properties over the years. If the service was friendly, honest, timely and without surprises at the closing time then to me it was well worth the fees. Enjoy your new home.
I think its typically like 7 percent? so like 40,000
about 4% or more. atleast $16.000 minimum
Generally the sellers listing agent gets 6% of the sale price which is split with the agent that brings in the sale. Six percent of $420,000 is $25,200. The loan agents fee is most likely buried somewhere in the mortgage documents.
Should be on the paperwork. I know all the taxes, fees and commissions were itemized on my paperwork.
A packet the greedy the skunk
I am a Realtor with HUNT ERA and if you bought a normal house that was listed on the MLS (not a HUD home, their commission probably wasn’t much and you most likely didn’t pay the commission on either side, but the Sellers did.
Your loan agency says what they made in your mortgage contract.
You don’t know what goes into drawing up a contract on a house, showing house or how much it costs us to have our RE license, CE courses, gas, MLS fees, Dues, e-key fees (the little item that gets you in the house), signs, advertising, and Franchise fees, etc. or the ridiculous hours that we work. People say we don’t deserve what we earn, but you don’t know what it actually costs us or how much time we actual waste on people who don’t buy – because they can’t afford it, lied about their credit, or just want to “look around. We get stuck. Ask my kids how much time they have lost with me because I took out “dead beat” buyers…. or the days upon days that I go without a day off and only getting paid commission……
Also, our commission is cut by paying our Broker their share, and then the franchise and then Uncle same. We usually end up with around 1%.
I have been a Realtor for 12 years.
Most think that we are (as one responder put it … Greedy Shunks!)
Well that is NOT ALWAYS the case. There is a LOT of time,
money, and training that goes a Realtor being able to provide
the services necessary for a successful transaction.
The Realtor Commission on the house that you purchased
was paid out of the Seller’s Proceeds. Any fees and
expenses that YOU paid DID NOT go to either Realtor.
The Realtor Commission can vary from State to State. But
a “standard” rule of thumb is that the Seller will pay a 6%
commission. That commission is then divided between the
Listing Broker and the Listing Agent. (They each share 3%)
Then the Selling Broker and the Selling Agent will share
the other 3%)
Depending on what type of Commission Split your Realtor
is on (with his/her) Broker … Your Realtor (given a 50/50 split)
would “possibly” get $6,300.
However … the reason that I say “possibly” is because Realtors have MANY ongoing fees and expenses. Some
of them are taken out of EACH closing check.
For example …. Realtors have Yearly Board Dues, Monthly
Office Dues, Realtor License Renewal Fees, Annual Errors
and Ommissions Insurance (This is comparable to a Doctor’s
Malpractice Insurance) There are mandatory classes that
we MUST take EVERY year to keep our licenses up to date.
Not to mention the other expense to maintaining our business such as Cell phones, Office Supplies, Gas, Auto
Insurance (Many of us Pay HIGHER Auto Insurance Premiums) just because we use our cars for business.
We HAVE to have the latest technology to REALLY compete
in this business …. Meaning Laptops; Digital Cameras etc.
There is also postage, and advertising, that we pay for.
And as independent contractors …. We DO NOT have employer paid health, dental, or life insurance. ALL of that must be paid for out of OUR on pockets.
Like in ANY other career …. there are certainly some GREEDY, INCOMPETENT, people …. But there are ALSO
MANY OF US that are highly skilled, extremely caring, well-trained … with top of the line technology and tools. We work
VERY hard … Using a lot of skills & training to get YOU to a
successful closing and into your DREAM HOME!
I hope that YOU had such a Realtor.
And …. I would like to ask …. Does YOUR boss or your clients
get THEIR money’s worth from YOU!
If the commission was 7% your agent grossed $7,350.00 because the commission is split between the buyers agent, the sellers agent, the buying agents broker and the selling agents broker.
Subtract from that the following: 30% for self-employed taxes, advertising expenses, fees charged by your agents broker (office space, administration, legal,supplies, ect), licensing expenses, continuing education expenses, liability insurance, business insurance and vehicle expenses. If your agent is part of a “team” of agents he/she will also have to split his/her gross commissions with the other team members before you start subtracting all the other expenses.
It’s harder than you think for an agent to net a great deal from real estate transactions- volume is the key. Brokers are the ones who make a killing and do very little for it.
The contract with real estate agents should outline clearly what percentage of the sale price his/her commission is, having recently sold a home my agent charged a 5 % of final sale price as her fee….half of that she had to share with another agent who actually sold the home ( had a multiple listing)…..you should have received papers before closing outlining all closing costs, your lawyer can and should have supplied you with a breakdown of all costs…contact him/her and pose these questions..you should get your answers from him/her after all you paid them good money….