How does a Realtor get paid?

Published By: on August 4th, 2011 in Category Nanaimo Real Estate News
Published By: on August 4th, 2011 in Category Nanaimo Real Estate News

Your Realtor only gets paid when a deal is completed. There is no hourly wage or stipend. The listing Realtor charges commission based on a per centage of the sale price of the home. This percentage varies between agents and agencies, and yes, there is a full 12% HST charged on that commission. Common practice is for the listing Realtor and the buying Realtor to split the commission 50/50. Then each Realtor will pay their brokerage a fee for each sale as well as various overhead charges such as real estate board membership fees (which pay for the MLS system), office space, advertising, signs, gas etc. Actually the entire real estate industry runs on the dollars that are generated from the commission charges from each sale. I know it looks like the listing agent is pocketing a big chuck of change with each sale, but by the time it is split with the buying agent and the brokerage and the taxman it is really a far more reasonable amount.