How do real estate agents typically receive their commission?

Real estate agents typically receive their commission as a percentage of the final sale price as outlined in the listing agreement. This method is common across the industry and is designed to incentivize agents to maximize the sale price of the property, as their earnings directly correlate with the final selling price.

When a property is sold, the commission, usually agreed upon in advance, is calculated based on the sale price and is paid from the seller's proceeds at closing. This arrangement aligns the interests of the seller and the agent, as a higher sale price results in a greater commission for the agent.

The other methods presented are not standard practices in the real estate industry. A flat fee for each transaction does exist but is less common and generally pertains to specific service agreements rather than traditional commission structures. Donations from sellers are not a recognized form of compensation for agents and do not comply with contractual or ethical standards. Additionally, basing commission on the appraisal value of the property is not standard practice, as agents are compensated for the actual sale price rather than an appraised value, which may differ significantly.