Updated March 27, 2023
A real estate agent invoice is a document used by agents, brokers, and realtors and issued to a client at the time a commission is due, or at the end of a lease or sale of a property. The invoice should be completed using the sales or lease price of that for which the deal was closed. Calculate the commission by multiplying the number by the percentage (%) amount agreed upon in the listing agreement between the agent and the client.
Remember to always make payment to the Agency and NOT the Agent.
What to Include
A real estate invoice should include the full name and contact information for both the professional and the client. It should also include:
- An itemized list of deals that have been completed and the sale price for each deal.
- The commission rate and subtotal that is due to the realtor for each deal
- The subtotal due, taxes and fees due, and total balance due to the realtor for all deals
This invoice may also provide a payment due date and specify penalties for late payment.
How do Real Estate Agents Get Paid?
1. Negotiate a Commission Percentage/Fee
In general, the total commission on a sale ranges from 3 to 6 percent. Often, two agents – one for the buyer and one for the seller – will work together on the deal. In this case, the total fee is usually split. Responsibilities for fees, and other details, will vary from case to case, so make sure to clarify all arrangements before starting work.
2. Sign a Listing Contract
Once you’ve agreed on commission and other terms, you should sign a listing contract that will authorize you to start working on selling the property.
3. Close on the Property
As the agent, you will list the property and show it to prospective buyers. Depending on the strength of the local market, you may receive multiple offers. If your market is really robust, you might even be offered cash or deals above the asking price.
Remember your fiduciary duties as a real estate agent. Get your client the best deal you can, and close as soon as possible.
4. Accept Commission Payment
Once the deal is completed, submit the invoice to the client for payment. Follow up as necessary.