So, do real estate agents get paid hourly? – you ask.
Listen, currently, it’s difficult to answer how do real estate agents get paid in the first place. There’s been a strong real estate agent salary vs. commission debate going on lately in the real estate industry. Typically, the answer to “do real estate agents get paid hourly?” would be a straight “no; they receive a commission when and if they close the deal”.
However, with disruptive companies catering to home seller’s desires of *feeling like* they didn’t lose money – because it’s just a feeling; reality is that, when using a real estate agent, home sellers actually sell the house at a higher price than they do when flying solo with a For Sale by Owner (FSBO) – and, instead of charging the full commission, they either waive the commission or propose a smaller one.
In both cases, who pays the real estate agent ends up not being the client, but the company. Whatever the client pays the company; it’s the company’s to keep.
So, knowing that companies are the ones who are paying the real estate agent’s salary, we come to the root of the question: do real estate agents get paid hourly?
It depends on the company’s guidelines and spirit. Some of them might, but that’s a bad idea, if you ask us, because we know how busy the life of a real estate agent is. It has no hours! If they charge by the hour, they will either work less and stop giving that extra that can sometimes be fundamental to closing a deal, or the company will lose money because agents work overtime a lot. We believe that most companies might be doing monthly salaries with bonuses for every closed deal. It’s, to our mind, the most sound strategy not to lose the agent’s interest and availability while making it profitable for the company as well.
Now, if you’re asking “do real estate agents get paid hourly?” not over curiosity but because you’re a home seller or home buyer and you’re trying to figure out how to go about things… we have great news! In your case, you will rarely have to pay a thing. You’ll sign a bilateral contract with the agent and he’ll collect his commission when you’re house gets sold or biting off your payment on the house you buy. There are some that charge you for their services aside from the commission, and independently from the deal being closed – plus; those disruptive companies will charge you upfront too. But they will all charge you for a service to be performed in a limited period; you will most likely never pay hourly!
And if you're wondering how much do they make; check our how much does a real estate agent make article!