A lot of sellers have been asking how commission splits work in the real estate business. It’s actually pretty simple.

On a 50% commission, for example, half goes to the buyer’s agent and half goes to the listing agent. Listing agents can use this money to attract buyers’ agents to your home.

A listing agent’s commission is used in the marketing of the property. 93% of buyers last year found their homes on the internet and through other advertising, as opposed to through the recommendation of a buyer’s agent. This goes to show the importance of allocating funds to these marketing resources.

“A portion of the listing agent’s commission is allocated to marketing resources.”

A big portion of funds on the listing side also go to the brokerage and to the government. Whatever is leftover becomes income for the listing agent.

If you list with my team and I bring you a buyer, myself, we will only charge you half of the commission fee since there was no buyer’s agent involved.

As always, if you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.