How Much Is Real Estate Commission?

The average real estate commission is between 5% and 6% of the price of the home. This commission is split between the seller’s agent and the buyer’s agent and is based on the average price of a home sold in the US in May 2020. It’s possible to negotiate a lower rate. The commission rate is negotiated, but is usually within the range of five to six percent. You’ll want to know the details of your specific situation before deciding on a commission rate.

Average real estate commission rates vary between 5% – 6% of a home’s sale price

Commissions are the single biggest expense a seller will have to pay for selling a home. While the commission is a big portion of this expense, there are many ways to minimize it. Flat-fee services, for-sale-by-owner sales, and discount brokerages all offer low or no-commission services. In addition to flat-fee services, some of the best real estate websites allow potential buyers to search for homes without a real estate agent.


A real estate agent’s commission will depend on whether the agent represents the buyer or the seller. The seller’s agent will earn 50% of the commission while the buyer’s agent will take 25%. The percentages vary from 30% to 50%, depending on experience, market size, and brokerage agreement. Listed homes will usually receive a higher commission. If you want to negotiate your commission, you should consult with an agent who specializes in selling homes.

Split between seller’s agent and buyer’s agent

The commission split between buyer’s and seller’s agents varies, but the percentage usually equals 50/50 or 70/30. The commission for both sides of the transaction is paid to a brokerage that distributes it to the agents. If the seller sells the home, the buyer pays the agent’s commission as part of the sale price, so the percentage should be the same for both.

According to the National Association of Realtors’ code of ethics, a buyer’s agent’s commission should be no less than 50%. In the case of the buyer’s agent, a low fee split could mean that the listing agent didn’t explain what his actions would do to the transaction. In addition, stingy sellers are difficult to negotiate with. In addition, a buyer’s agent that does not show suitable homes for a buyer’s profile isn’t providing the best representation for their client.



You may be surprised to learn that a real estate commission is negotiable! Historically, most consumers were told that commissions are non-negotiable, but these days you can negotiate a real estate commission based on your particular needs. Here are a few tips to get you on the right track:

o Know what to ask for. Make sure the rate you ask for is lower than the market average, and explain why. If the market is hot, a seller can use information about how quickly their property will sell to leverage their negotiating position. Real estate heatmaps analyze neighborhood metrics such as rental income, Airbnb occupancy rates, and cash on cash return. You can use this information to make your request more compelling. After determining what your target commission rate should be, discuss your options with your agent and write down any factors in your favor.




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