How does the realtor get paid in a real estate transaction?

  • Sometimes buyers or sellers are concerned about how to pay their realtor in a real estate transaction if they choose to use one
  • Realtors are often commission-based and are often paid at an hourly rate
  • This means that the price that the seller or buyer is supposed to pay the realtor is a pre-determined percentage of the purchase price of the property. That term is negotiable by the attorney ahead of time during the agreement of sale
  • Once the agreed upon percentage is made, the realtor is then paid out of the proceeds of the sale at the closing, typically by the seller
  • A  realtor doesn’t get paid until the transaction is final