How is a real estate agent typically compensated?

A real estate agent is typically compensated through commissions based on the sales price of the properties they help buy or sell. This commission structure is a widespread practice in the industry, incentivizing agents to work diligently in achieving the best possible sale price for their clients. Typically, the commission is a percentage of the final sale price, and it is usually paid by the seller at closing. This means that the agent's income is directly linked to their performance and the success of the transaction.

The commission model aligns the interests of the agent with those of the clients since a higher sale price translates to a higher commission for the agent. This practice encourages agents to market properties effectively, negotiate on behalf of their clients, and provide comprehensive services throughout the buying or selling process. The use of commission-based compensation is a standard across the real estate industry and reflects common real estate practices in Tennessee and elsewhere.