How Much Is Real Estate Commission?


Real estate commission is a fee that sellers pay to the real estate agents when they

sell their home. This fee is typically split between the seller’s agent and the buyer’s


Although the fee is negotiable, most homeowners/sellers simply accept the given

commission rate. In the future, however, the recent jury decision in Missouri and

other lawsuits may lead to changes that will reduce real estate commission rates.


Seller’s Agent

Real estate agent commissions are typically a percentage of the sale price of the

home. The seller’s agent keeps the majority of the commission and the buyer’s

agent receives a smaller share. The exact terms of the commission are outlined in

the listing agreement. Historically, a traditional realtor commission has been around

6%. For more


However, real estate commission rates are negotiable. Sellers can negotiate with

their agents to find a rate that is both fair and reasonable.

When negotiating, it’s important to be respectful and to remember that the agent is

doing work for you. They are responsible for pricing your home correctly, staging it

to appeal to buyers, and facilitating the transaction from contract to close.


Moreover, a good agent will put in a lot of time and effort to market your property to

potential buyers. This may include professional photography, virtual tours, open

houses, and offline marketing. As a result, their work is worth the commission they

earn from you.


Buyer’s Agent

As a seller, you can often negotiate the buyer’s agent’s commission rate. Offering a

competitive commission rate will incentivize agents to show your property and

potentially bring in a buyer.

However, it’s important to remember that buyers already have to cough up a lot of

cash to buy a home: earnest money, down payment, inspection and appraisal fees,

closing costs, etc. Adding an additional 2.5-3% to their out-of-pocket cost could price

them out of the market or make it difficult to afford a new mortgage.


Real estate agents work on a commission basis, meaning they’re paid only if the

transaction closes. As such, it can be difficult to justify cutting the agent’s

commission, especially if they’ve invested a significant amount of time in your listing

(consultations, staging, photography, open houses, marketing, negotiating, etc).



Broker fees are another cost of buying or selling real estate. They are typically

charged by the listing brokerage to compensate their salespeople and their buyers’

agents for bringing them a deal. Generally, these rates are in the 4%-6% range.

In NYC, where two-thirds of the population rents, brokers are also paid a commission

fee to find tenants for apartments. This is usually a percentage of one month’s rent

and the broker will receive it from the tenant directly or from the landlord.


Broker commission rates are negotiable, but most sellers simply go along with

whatever rate their agent is offering them. This is why it’s important to work with a

knowledgeable agent that will help you understand the current market conditions

and what’s involved in your particular transaction. Using Hauseit’s flat-fee MLS

listing service in NYC is one of the best ways to save money on traditional broker

commissions when selling your home. The savings can add up quickly!


Closing Costs

Selling a home is one of the biggest financial transactions most people make in their

lives. A great real estate agent can do a lot to help you get your home sold quickly

and for the best price. They can help you stage your home, take professional photos,

determine the price of your home based on market research and more.


When a seller sells a property, the real estate commission is typically around six

percent. This amount gets split between the seller’s and buyer’s agents. The exact

commission rate will be defined in the listing agreement the seller signs with their

agent before putting their home on the market.


Before the seller’s or buyer’s agent receive their commission, they must give a

portion to their sponsoring broker. This is so the broker can cover expenses like

office space, transaction fees and other business-related costs. The broker can keep

anywhere from 30%-50% of the commission, depending on their experience and

brokerage agreement.

Leave a Reply

Your email address will not be published. Required fields are marked *