COMMISSIONS OF A REAL ETSTATE AGENT
In the real estate business, there's a specific amount that is to be paid to a broker or an agent once a deal is completed, that amount is termed as Commission. Generally, 1% of the selling price is the share that goes to the broker as a commission, which is mostly preferred by the majority of real estate agents. For a real estate agent or broker the commission on like a monthly salary which they consider as an adequate sum of money, hence, the commission is a complex subject.
Buyers are hardly aware of the commission splitting system between real estate brokers and agents, therefore, at KHOSLA KA GHOSLA, we act as a bridge by helping everyone knowing and making them understand where & how their brokerage amount is getting split.
Many home buyers assume that a real estate agent is making huge money in the form of commission and the money paid is not commensurate enough with the work that an agent has done.
However, that assumption is not entirely accurate, that is why we are sharing this informative article where you will surely understand how the commissions are split among the agents, which in turn will help you understand the business of real estate service professionals in a much better way & every prospective homeowner will have a different viewpoint for real estate agents.
So the amount of money earned by a real estate broker depends on multiple factors. In general, when a client purchases or sells a property the payment received by an agent is in a form of commission which can be the percentage of the selling price of the property or the flat fees decided by the agent and its client.
AGENTS, BROKERS AND COMMISSIONS
In the US, there is a stringent policy that indicates that an agent should be a licensed professional who’ll only work under a designated broker, this eliminates their chance of working independently and getting directly paid from the client.
Similarly in Khosla Ka Ghosla, the same system is applied. In the real estate profession, a good agent carries out certain responsibilities whereas a broker is capable of working independently. A commission is directly paid to the broker once the deal is completed then the amount will be split with the agents who were part of the deal.
The commission percentage differs from project to project. Whenever a sale proceeds the commission is decided that is to be paid by a seller, unless and until the buyer and seller come to an agreement about splitting of the commission amount. Many a time the asking price of property factors the commission, which means that the buyer has to pay the part of commission anyway, also if it is not decided to split into half.
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