Real Estate Commissions: 4 Key Insights

Real estate agent hanging sold sign
Real estate agent hanging sold sign

"Most people didn't think about how real estate agents get paid -- I never did," says homeowner Rick Razzano of Wayne, Ill. "When we bought our house, I don't know if I understood that our agent's commission came out of the amount the sellers were paying their agent."


However, now that Razzano and his wife, Nancy, are selling their five-bedroom, three-bath home, they're much savvier about real estate commissions. They asked their agent pointed questions about what she'd charge and carefully considered the amount they'd be willing to pay.

If you're about to list your home, you should know the basics of your real estate agent's commission. Here are key things to understand: