How do real estate commissions work?

When a seller chooses to sell their property with a real estate agent, they pay a commission to that real estate agent as a fee for service. This commission is typically a percentage of the sale price. Then, that real estate agent will typically offer half of this commission to any other agent who brings a buyer. Traditionally, Sellers have paid 6% commission and will therefore offer 3% to any agent who brings a buyer. ... more