Why Do Real Estate Agents Make So Much Commission?

They Don’t!  According to this infographic.

The 1 line in the closing documents that we would love to remove, the Agent Commission.  The thinking goes something like this, “$6,000 commission for what? I could have put a sign out in the front yard!”

I do think that the author of this graph is a little bit biased toward the Real Estate Agent, however it does a great job of helping us understand why the commission structure is what it is.  The illusion that the Listing Agent simply puts a sign in the front yard and makes a couple fliers just is not accurate.

I don’t know about you but I am ok with paying a Real Estate Agent $29 an hour to sell my house.

Costs You May Not Have Thought Of:

  • Brokerage Fees
  • Marketing Costs (trust me this is more than you would think)
  • Operating Expenses
  • Training and Licensing
  • Taxes
  • Certifications
  • Time Spent (Communication, Presentations, Open Houses, Showing, Monitoring Showing Feedback, Inspections, Analyzing Comparables, Transaction Handling, Title and Escrow)
  • Negotiating

*I am not a real estate broker

Enjoy the “Why Do Real Estate Agents Make So Much Commission” Infographic.

Browse more infographics.

By |2012-05-15T14:02:08+00:00May 16th, 2012|

About the Author:

Jason Fox - Real Estate Marketing Business: We build WordPress Real Estate Websites with IDX Me: #GoHawks, #BringBackTheSonics, #MaybeNextYearMariners, #ILoveMyKids #SeattleSunLover #SeattleWaterLover #BFF Blog: Focuses on Wordpress Websites, Content Management, SEO Services, SEM Campaigns, Social Media Marketing, Email Marketing, Beautiful Design, IDX, and more.

One Comment

  1. San Diego Real Estate February 22, 2013 at 5:31 am - Reply

    A real estate agent is a professional and knows more than you do about buying and selling properties. It’s what he/she was trained to do. So by hiring one you would get access to all that information and experience. So unless you think you can learn everything about real estate without effort before you selling or buying your home, it would be much easier to simply hire a professional.

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