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How Real Estate Agents Make Money: The Complete Guide to Understanding Agent Compensation

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  Introduction  Ever wonder how real estate agents make a living? Though it seems like a very glamorous job-open houses and closing deals-there's a lot more to how real estate agents make money. Whether you consider yourself a wannabe real estate agent or are simply curious about how much they make to help you buy or sell your property, you'll want to understand the financial mechanics behind this career. This article will show, in detail, exactly how realtors get paid, what affects their incomes, and actionable tips which will surely help agents increase their earnings. Now, let's get down to brass tacks and discuss how real estate agents are compensated. How Do Real Estate Agents Make Money? 1. Commission-Based Income Commissions are the most common method by which real estate agents make money. A commission is a percentage of the final sale price of a property, paid to the agent-or agents-involved with the transaction. This is usually negotiated between the seller and th...