*How does commission work?

This is a question that I have had to explain 3 times this week and I want real estate agents to be more transparent when it comes to commission and explaining how it works. I really need a white board for this but here goes my attempt to share. When a property is "listed" the agent works out a commission with that seller to sell their property. The agent then enters the property in the local MLS and offers a portion of that commission to an agent with a buyer. So let's use $300,000 for an example and the agent worked out a 6% commission=$18,000 total that will be paid and dispersed at closing. So if 3% was offered to a buyers agent then their company will take $9000. The agent then has an agreement with the broker-in-charge of the "split" they take home. Let's just say the split is 50/50, the agents each will be paid $4500 each. This is a pay day BUT you have to factor in MLS dues, advertising, gas, time, referral fees, office dues, insurance, etc. the agent has been paying to get this deal completed. Essentially each total commission is divided by 4 for all the parties involved. Make sense? I made a video a few weeks ago after nearly getting into a heated debate with a buyer that was adamant she didn't want to use a Realtor and I was trying to explain to her that the listing agent already had a contract with the seller to pay out a commission if she used an agent or not. If you call the agent on the sign and only deal with that Realtor you are giving both commissions to the listing agent and this is borderline illegal if not conveyed and signed off to you agreeing to it. So it would only be split in half and you will not be properly represented as the listing agents loyalties are to the seller.

*If you follow real estate news the National Association of Realtors (NAR) is under a heated lawsuit that may affect all of the real estate industry in regards to this topic.