Bob Northern & Company
12540 Patterson Ave
Richmond, VA 23238
Tel: 804-708-9463 • Fax: 804-708-9467
Realtors and Buyer's Agent
How much do realtors make in a transaction

See for yourself how much your agent will make

How are Realtors paid and how much money do they make in a transaction?
Real estate commissions are totally negotiable! If an agent ever tells you "it's the law", they have to charge you a 6% commission, they are totally wrong!
Real Estate companies cannot group together and "set" real estate commissions. Any real estate company can make the decision to charge any commission they want, within their own company. When companies group together to set commission rates, even two companies, they can be charged with Sherman Act Anti-Trust Violations.
Realistically, most resale commissions in Richmond, Virginia are 6% of the gross sales price of the home. This 6% commission is split between the Listing Company and Selling Company 3% and 3%. The agent who works for a real estate company is paid a percentage of the gross commission that his company receives. Most agents will receive 50% to 80% of the net commission paid to their company. In many cases, huge referral fees and/or franchise fees are paid off the commission paid to the company. The agent's portion is based on a division of the net commission retained by his company.
Normally agents are paid a 5% commission on new homes. The division between the companies is usually 2.5% to the listing firm and 2.5% to the selling firm.