How do commissions work in real estate transactions? Allow me to explain this today.
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Today I’d like to briefly explain how real estate commissions work. Sellers typically cover the commission fees for their agent and for the agent representing the buyer. This means that the buyer typically does not hold responsibility for any costs related to the commission. When a seller pays commission, it’s actually split four ways. One part of it goes to the listing broker, another goes to the listing agent, another still goes to the buyer agent’s broker, and the remaining portion goes to the agent representing the buyer. To see our full message explaining how commissions work, watch this short video.