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Commission consists of 2 sides (Seller [50%] Buyer
[50%])
If the agent lists your property the listing side of the
commission is paid to the broker who holds my license. Or if the
agent sells your property the selling side of the commission is paid to
the broker who holds my license.
This would be Four Winds Realty (FWR). FWR
is paid 50% of the total commission. In about 10% of the
transactions FWR may receive both the listing and selling sides (meaning
FWR listed the property and had the buyer in house).
Of course, your agent receives some commission, the percentage is
determined by a number of factors. this is personal and between your
agent and Four
Winds Realty. For the sake of example let's presume the agent gets 50% of the
commission that is brought in by the sale.
| Home sold for |
$200,000 |
| Commission rate is |
7% |
| Total Commission on sale |
$ 14,000 |
| |
|
| The Listing side of the commission is |
50% |
| FOUR WINDS REALTY IS PAID |
$7,000 |
| The Cooperating Broker or Selling
Broker receives |
$7,000 |
| |
|
| This equals the total commission paid
to sell home |
$14,000 |
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|
| |
|
| NOW LOOK AT A TYPICAL
FWR BROKER/AGENT SPLIT |
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|
| COMMISSION TO FOUR WINDS REALTY |
$7,000 |
| FWR agents are paid a percentage of the broker's
commission as agreed to. This can vary from 45-90% |
|
| For this example lets presume the agent receives |
50% |
| FWR issues the agent a check for |
$3,500 |
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NOW TAKE A CLOSER LOOK
AT HOW A FWR AGENT MAY VALUE THEIR TIME |
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|
| My first visit with you and view the
home |
1 hr |
$ 40 |
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| I prepare my Comparative Market
Analysis |
2 hrs |
$ 80 |
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| My Listing Appointment, Measuring &
Consultation |
3 hrs |
$ 120 |
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| Put on the Lockbox and yard sign(s) |
30 min |
$ 20 |
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| Photograph property, rework photos,
Visual Tour |
4 hrs |
$ 240 |
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| Broker/Agent Open House |
4 hrs |
$ 160 |
| Refreshments, prep &
Promotion |
|
$ 225 |
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| Advertising Prep & Placement (including
internet) |
6 hrs |
$ 240 |
| Writing text for the
internet, ad copy in magazine |
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| Communications with clients, discussing
property, showings, feedback, etc. |
4 hrs |
$ 160 |
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| Scheduling appointments |
8 hrs |
$ 320 |
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| Follow-up with showings |
6 hrs |
$ 240 |
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| Offer / Negotiation / Acceptance |
4 hrs |
$160 |
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| Follow-up contract dates / scheduling |
6 hrs |
$ 240 |
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| Review closing papers / attend closing |
2 hrs |
$ 80 |
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| TOTAL COSTS |
50.5 hrs |
$ 2,325 |
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| Now let's finish the math: |
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| My gross commission is |
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$ 3,500 |
| My Time and Expenses are |
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$ -2,325 |
| My net profit is |
|
$ 1,175 |
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My hourly wage, if I were paid hourly
is:
$1,175 / 50.5 hrs = |
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$23.26/hr |
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| Hopefully, some of
the commission mystery has been cleared up. |
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| These are estimated figures based on a 6 month
listing. |
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