Commission Splits

@Denisa9850177 Sorry for the delay in response, for some reason this wasn't coming up on my end. First of all, normally (in most States) commissions are always negotiable with one or two exceptions like maybe a court order in probate. The 6% you often hear of is negotiated between the listing Broker/Brokerage and Seller/s. The Listing Brokerage would then offer a portion of that to the selling Broker/Brokerage (normally half but it could be more or less than that). The way a traditional commission would work is as follows (using your numbers):

200k Sale x 6%= 12,000

Half of the 6% would be offered (referred to as cooperating commission) to the Selling Agent (the one that brings in the buyer and has an offer is accepted by the seller), so that would be 6000.

Listing Broker earns 6000.00 in commission and splits that with their agent according to their written agreement. If they have agreed to 50% then the Listing Broker retains 3k and the agent earns 3k.

Same thing on the buying side with the selling agent. The 6k is split according to their written agreement. If they have agreed to 50% then the math works the same; 3k to the Selling Broker and 3k to the Selling Agent.

The longer an Agent is in the business and gains valuable experience then they would have leverage to earn higher commissions from the Broker/Brokerage.

*I refer to Brokers and add Brokerage, because many Brokers hire Sales Managers or other experienced people to represent them in matters such as hiring sales agents and negotiating commission splits and other benefits. However, the ultimate responsibility lies on the Broker of Record for all matters relating to their Brokerage operations.