How Do Realtors Get Paid in Los Angeles?

We've all heard jokes about Realtors and real estate agents getting paid to open doors. Although this is far from true (we also get paid to close doors), many people are confused about who actually is responsible for commissions to the buyers and seller's agent in California. In some states, like New York, buyers are responsible for compensating their agent. However, in Los Angeles, California, the seller is responsible for paying the realtor's commission, on both the buying and selling side. This is because the realtor is working on behalf of the seller to help them find a buyer for their property. The realtor will typically receive a percentage of the sale price of the property as their commission.

Are you a home buyer or seller in Los Angeles looking to work with a realtor? Here's what you need to know about real estate commissions:

-The buyer is not responsible for paying any real estate commission. The commission is paid from the home sale proceeds and traditionally disbursed by the escrow or title company to each agent's broker.

-The amount of commission is typically 5-6% of the home's sales price.

-It's important to work with with a Realtor you trust and make sure you're comfortable with the commission agreement before signing anything.

So there you have it! If you're looking to work with a realtor in Los Angeles, keep these things in mind when it comes to commissions. Additionally, it's important to find a Realtor who you feel comfortable working with - someone who you can trust to give you honest advice and guidance throughout the process.

If you have any questions about how commissions work, send me a message and we can chat!