WOW, What About Those Commissions? 

The Realtor who represents the seller doesn't get all of the commission.  Typically, real estate commissions are divided four ways. 

The commission is split about evenly between 4 parties, the listing agent´s brokerage and buyer´s agent´s brokerage.  Before the agent is paid, their brokerage companies take 40%-70% for the agent´s use of the company name, office space, use of a limited company equipment, signs, forms and letterhead.

Realtors are independent contractors and therefore are not company employees.  Realtors only get paid when a home is sold and CLOSES. 

Maybe the owner decides not to sell, the home is priced too high, is in poor condition, in a bad location or worse yet all of the above.  If it doesn't sell, and 34% don't, the Realtor has put in all that time, money and effort on their own, without help from their brokerage, but don't get paid. 

• full financial responsibility for liability issues from the properties they sell
  
• newspaper, magazine and periodical advertising costs
  
• property signs, directionals, flyers, etc.
  
• marketing their properties to the public
  
• Realtor Association memberships
  
• Dues to access the MLS
  
• state licensing costs
  
• required continuing education
  
• real estate forms - sales agreements, counter offer forms, addendums, promissory notes, disclosure forms, etc.
  
• memberships for networking in civic and professional organizations
  
• business lines, fax lines, cell phones, pagers, etc.
  
• long distance costs
  
• personal web sites and their monthly support and hosting costs
  
• computers, printers, hardware and software, etc.
  
• camera, film or memory cards, print development, printing costs, etc.
  
• all client expenses and spiffs
  
• automobile purchase, fuel and maintenance
  
• flyer creation, copying, expense tracking, filing, etc.
  
• mass mailing or distribution costs
  
• administrative support
  
• printing and copying, etc.
  
• office supplies
  
• paper, envelopes, files, writing instruments, folders, etc.
  
• postal costs
  
• ongoing education requirements of 30 hours per year to stay up to date with the changing laws, standards and ethics requirements
  
• income taxes, reporting and tracking; taxes are usually paid quarterly, about 50% of earned income
  
• errors & omissions, medical, dental, life and disability insurance
  
• retirement plan - no 401K or pension plan is provided by the broker

It can take a Realtor months of spending their own money and hundreds of hours, selling a listing and/or finding a home for a buyer with a 34% chance the deal is not closed.

Think about what you receive for just two month's for doing your job, Realtors are compensated for their education skill, time and effort they put into their work as well.