Realtors work on commission, and that commission is generally paid by the seller. But a realtor does not earn 6% on the sale of your home. She must split that several ways. If a buyer's realtor is involved, 1% to 3% may go to the buyer's realtor or real estate company. And, of course, your realtor may work for a corporation and may need to share the profit with them. On your $250,000 house, the realtor is likely not making very much of the $15,000 sales commission.

The realtor's cut may go up if she can act as both the seller and buyer's realtor. That seems like a conflict of interest. That's because it is. There are disclosures that must be signed in that case, acknowledging that the realtor is working both sides of the transaction. And there are strict laws and accountability that act to ensure that the realtor does not take advantage of the situation lest she be stripped of her license. But it is still a conflict of interest. And it's the simple reality of the industry.

You should be aware that even when a realtor is working for one side exclusively, it is still actually in their best interest to work against you. Here's how it works...