A commission is the fee that a real estate agent charges over a property transaction. It can be different under different circumstances. Some of the major factors that determine and agent’s commission are:
- State they operate in
Usually a real estate makes between 3-6% of the actual price of the house. The variation in percentage is due to commission rates of different states.
For example, an agent working in Georgia usually makes 5% on a house. So if he sells a house priced at $250,000.00 he will get $12,500 in terms of commission.
However, this is not it. Out of this amount, 50% goes to the broker. Out of the other 50%, there are taxes, offices repairs and association fees to pay which leaves an agent with a very low amount.
So selling one house and then partying is not recommended. Make sure you sell as many houses as possible to increase your net income, and then go on partying.