Have you ever wondered how your real estate agent gets paid? I'm sure you're aware of the commission but have you ever wondered where the commission actually goes?

The fact is the commission paid by the seller of homes in Fayetteville NC is paid to the selling brokerage not the necessarily the person who listed the property. Technically the brokerage is the agent and the people you see out and about are sub-agents but for the sake of this article when I refer to the agent I mean the person who meets with the seller or buyer client, the sub-agent.

When a Fayetteville NC homes sell, a commission is disbursed by the closing attorney to the broker in charge of the real estate brokerage firms involved in the sale. Usually there are two firms, a listing firm (for the seller) and a firm for the buyer. The amount of the commission paid to the firms is determined by the listing firm and the seller.

Once the brokerage firm is paid, the money is then divided between the office and the agent. This is determined by the firm's policy. Almost anything is possible but it's typically a percentage split. Traditional companies can range from a 20 percent to 100 percent payout to the agent.

Like LasVegas the numbers always favor the house or firm in this case. Even under 100 percent plans the firm typically charges a desk fee or rent to the residing agent. High profile franchises, the popular names all charge franchise fees in addition to the desk fees or commission splits.

Now you might be asking how is this information important to me the consumer. Well it demonstrates the overhead involved in the real estate business. The reason the commission seems so expensive is because it pays for the listed property to be promoted to the entire agent population in the Fayetteville NC real estate market everyday not to mention professional representation for the buyer and the seller.

The firm spends money on advertising and marketing, in some cases tens of thousands a month.