How do real estate commissions work?

Understanding real estate commission is quite uncomplicated.  When a seller selects an agent to represent him or her in the sale of their real estate, both the seller and agent agree upon a commission to be paid by the seller upon the sale of their property.  In most cases, the real estate commission is 6% of the sales price, though not written in stone.  It is up to the seller and agent to decide on an agreeable commission amount, which is paid by the seller at the closing table.  Whether the commission is 5, 6, or 7%, the selling agent, also referred to as the listing agent, will offer a percentage of the commission to the agent that presents a ready, willing and able buyer.  Most agents offer half of the agreed upon commission to the selling agent but there are some that offer more or less!  Most people are under the impression that the listing agent gets the keep the whole 6% commission but, that could not further from the truth.  If the listing agent is not a real estate broker him or herself, he or she has to compensate the broker under whose license he or she works.  Once the broker is paid their percentage or flat fee amount, and other real estate fees associated with the transaction, the agent is paid the remainder.  If there was an agent who presented a ready, willing and able buyer, the same applies to him or her.  When listing a property for sale, there are expenses that the agent may have to pay out of pocket for to include fliers to advertise the sale of the property, printing and mailing expenses, and other expenses incurred as a result of creating a successful real estate transaction for the seller so commissions can also be considered partially as a reimbursement for expenses the agent has incurred on behalf of his or her client.  So, when it comes to real estate commission, your agent works hard for you so commission is simply put, their salary for working for you, their client.