A Message from Jeff Struck
Licensed Real Estate Agent
How Do Real Estate Agents Get Paid?
I almost always get paid by the seller or leasor, which is the owner of the property being leased. That means, if I am your agent and you are a buyer or leasee, there is no direct cost to you. I also don’t get paid until you sign a lease or close on a property you are buying or selling. I make almost all my pay through commission.
A commission is usually a percentage of the property’s selling price, but it can be a flat fee. The percentage or the flat fee can vary depending on the deal. The rate of the broker’s commission is negotiable every time.
The commission, however, is not paid directly to me. It is paid to my broker. I work under the umbrella of my broker, Coldwell Banker NRT. I must split this commission with my broker. After that, sometimes a lead source who connected us takes another percentage. Sometimes that lead source was paid up front by me out of pocket.
I also pay my broker a monthly fee to cover the office expenses, marketing, insurance, and other expenses. Then I have my own cost of doing business, taxes and fees, high power software, mileage, MLS, computers, internet, office services, marketing, etc.
Real estate commissions are often shared among an entire team. In a typical real estate transaction, the commission might be split four ways, among them:
· Listing agent – the agent who took the listing from a seller
· Listing broker – the broker for whom the listing agent works
· Buyer’s agent – the agent who represents the buyer
· Buyer’s agent’s broker – the broker for whom the buyer’s agent works
Jeff Struck is a dedicated self starter who has built multiple businesses. The most recent business venture achieved seven digit revenues, a BBB A+ rating, excellent online reviews, and is now for sale with several interested parties. Nobody gets to that place without understanding marketing and sales.
He has been a real estate investor and landlord for over 25 years who actually enjoys math and doing spreadsheets and financial analysis. He believes if you can’t create a win-win for all the parties involved you’re not really doing business.
Jeff has always loved to read and learn and frequently travels around the country attending different educational seminars.
Jeff has a construction background as well and has had at least 1 foot in this industry for about 30 years. The broadness of understanding helps put pieces together for you that people who specialize just can’t see.