How does commissions work?

Commissions are how real estate agents are paid. The seller signs a listing agreement that calls for a commission or fee. Once closed, the seller pays the agreed upon fee or commission. That commission or fee is paid as agreed to in the contract. At closing, the agents involved in the transaction are paid the agreed upon amounts. In turn, the agents share an agreed upon percentage of the money they have earned with their brokerage. Agents do not get paid unless they close on a house, so doing the best they can to please the client is very important. It is always about working in the best interest of the seller or buyer.