How do REALTORS® make their money?

(05.04.02) REALTORS® most often work on commission. The commission is generally a percentage of the sale price of the listed property. This percentage is negotiated with the Seller when the property is listed and most often is paid when the sale is completed. If the property fails to sell, the REALTOR® does not get paid and he/she and his/her brokerage firm absorbs the marketing costs. Upon completion of the sale, the commission is generally divided with the brokerage firm that may have participated in the sale. The funds are split again between the listing brokerage and the individual REALTOR®, each having their own expenses to pay to support the services they contribute. The costs of advertising, support staff, francise fees, office space, automobile expenses, insurance, equipment (the list goes on and on) are all a part of the necessary expenses supporting the sales effort.

Disclaimer: These answers are in general terms and may vary with specific factual circumstances.