Typical Commissions in Chapel Hull, Durham and Raleigh. NC .

Traditionally, real estate agents are paid on a commission basis. Sellers list their property with a real estate company and agree to pay a percentage of the purchase price to the company upon the close of the sale. In this area, commissions typically range from 5 - 7% for residential real estate. The listing company then offers a percentage of the total commission (typically 50% in Durham and Chapel Hill, 40% in Raleigh) to other companies who bring a buyer to the property, through a multiple listing service. If the listing company secures the buyer for the property, then no split is involved, and the listing company gets to keep the whole commission.

The individual agents split the commission earned by their company with the company. Percentages kept by the agent vary widely, depending on numerous factors, but primarily on the agent's overall productivity. A new agent may keep only half of commissions earned, while top producing, experienced agents may keep 90% or more of each commission dollar. Companies vary widely in what expenses, such as advertising, office, phones, etc., are covered by the company, and what are charged to the agents.

Agents working with buyers will typically work as buyer's agents (unless the property is listed with their firm) and can still be paid by the seller at closing on listed properties and on other properties, when the seller agrees to pay a buyer agent commission. Even though buyer's agents are hired by buyers, their rate of compensation is often determined by what the seller and seller's agent are willing to pay.