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I did consider buyers agents. If there are 100 homes bought and sold, and 100 agents, then on average each agent buys 1 home and sells 1 home. If the 6% commi
by MerelyMortal 5y ago
I did consider buyers agents.
If there are 100 homes bought and sold, and 100 agents, then on average each agent buys 1 home and sells 1 home. If the 6% commission is split between buyer and seller, then on average each agent gets 6% of each home (3% for selling the home + 3% for buying the home).
In other words: If there are two agents per transaction (buyer and seller), then there would have to be 200 agents to only have one comission each, but if there are 100 agents, then each agent receives two commissions (3% + 3% = 6%).