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How does commissions work?

One of the most common objections we receive when offering help to potential buyers and sellers is paying commission, since; buyers want to spend less for their dream home; and sellers want the top dollar in selling their property. So, how does commissions really work? Today, we’re breaking the myths on commission, and breakdown why real estate professionals charge.

To top everything, buyer typically doesn’t pay commission.  You read that right! In usual scenarios, when a buyer gets an accepted offer for a home for sale, the selling agent simply splits his/her commission with the buying agent. It’s only in more unlikely situation, where a buyer is interested in a home that is not listed through a real estate brokerage that a buying agent would want to have the buyers sign an agreement for compensation, in case the seller would not provide compensation.

Commission is taken right off the selling price of the home, which translates that the agent compensation barely comes off anyone’s pocket, but actually from the home value itself. But, what does it pay for?

To give you an idea, we’ll break it down for you:


  • Home Valuation. What your real estate professional brings to the table is their expertise and experience with the market, assisting you in pricing your home, not only for its value, but also for it to actually sell.
  • Competitive Marketing Strategies. Your agents’ obvious job is sell your home and spend all their available resources, including their contacts, home staging expertise, online platforms and reach, and efforts for hosting open-houses and executing other marketing tactics, to make a pool of buyers not only look in your home, but make desirable offers that you can choose from.
  • Qualified Buyers. Again, they’re not after looky-loos whose only interested in seeing your house, they’re after serious buyers who are qualified and able to make an offer to buy your home for sale.
  • Smooth Closing. They have all the experience and training to make sure that your transaction is breeze. They’ll make sure that you’ll be getting to the closing of your home sale without the hassle or pressure in showing up for the staging, showings, appraisals, inspections, or the paperwork.


You have full control on how you plan on selling your home. If you’re ready to finally get it sold, give me a call at (704) 237-0313 or (704) 617-0847.


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