Agent Commission: How does it work in Real Estate?

If you're thinking about hiring a real estate agent to help you purchase or sell a house, then you should know about agent commission.

This blog post will discuss an overview of how agent commission work.

Real Estate Commission

A real estate agent commission is a part of the purchase price of a property paid to the real estate agents and brokers that helped with the acquisition and sale. However, if not sold, the agents will not earn. 

Meanwhile, the homeowners paid the real estate commission rate using the money received from the property sale. 

It is then calculated as a percentage of the final price of the property. 

For instance, if the seller said that the amount of the home is Php 800,000, and the commission rate is 6 percent. You can compute this by  (6/100)x800,000 = Php 48,000 commission. However, it is noteworthy that there are other fees needed to pay.

rating commission

Types of Commission

According to LocalAgentFinder (n.d), there are several types of real estate agent commission. There are three main types: fixed rates, flat rates, and tiered rates.

  1. Fixed Rateswhen selling a house, you will pay a fixed rate. However, there are no standard sets and it varies from one agent to the next. 
  2. Flat Rates – As a buyer, the agent will know exactly how much it costs to sell the house, regardless of the price.
  3. Tiered Rates – the agent will acquire a commission based on the sale price of the property. Tiered rates aim to encourage real estate agents to get a more excellent sale price than anticipated.

While becoming a real estate agent requires a lot of effort, the rewards may excellent like in Real Estate Earn Ph

Here in Keller Williams Philippines, we offer the best of the best properties and agents without compromising your money! Contact us info@kwphilippines.com to learn more about how you can acquire great properties. 

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