Realtor Reality

Residential real estate commissions typically are 6%, split between buyer and seller agents. Importantly, the seller pays the commission to both agents. If the seller offered less, selling agents wouldn’t show the home. Thus, commissions stay high, but the median Realtor earned just $49,000 in 2018. The lure of high commissions entices many to become Realtors and spend considerable time on costly client acquisition. Also, for many it’s part-time work.

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