How Much Is Real Estate Commission?


Real estate commission is a percentage of the total sale price paid to the agent for the real estate transaction. It is usually 6% of the home’s price. However, there are ways to reduce or eliminate the commission fee when selling or renting a home.

Typical Brokerage Split

Typically, when an agent sells a home, their broker receives a share of the commission from the home’s sales price. The amount of this share varies, though 60/40 splits are common. Some brokerages also charge agents a periodic desk fee to use the company’s marketing resources and earn commissions.

Seller’s Agent Commission

When a home is sold, the seller must pay a real estate commission to both their listing agent and the buyer’s agent. Traditionally, this is a percentage of the sale price, but it can be calculated differently depending on the seller’s agreement with their listing agent and the purchase contract between the buyer and seller. Also read


Homeowners can negotiate with their listing agent to reduce or eliminate the commission fees, if they have an exclusive right to sell. This is a good option for home sellers who don’t want to pay a broker’s commission.

Percentage of the Home’s Price – In this case, the agent gets a larger percentage of the home’s price, so they are more motivated to work hard to get a higher home sale price.

There are also options for buyers to save on their real estate commission by using a cash back rebate, which essentially gives back part of the agent’s commission to the buyer once they close on a home. This can be a good choice for home buyers on a budget who don’t have the money to pay a commission on the whole price of the home.

In other cases, agents can offer lower commission rates in exchange for repeat business. This can be a good way to save money when you are buying or selling multiple homes in a row.

If you are planning to buy a home, it is a good idea to shop around for a real estate agent that will offer you a low commission rate and a good customer service experience. This will ensure that your agent has the best chance of selling your home at a high price in a reasonable time frame.

Another way to save on your home’s real estate commission is to find a local agency that offers a flat-fee MLS listing service. These services allow you to sell your home for a flat fee instead of paying a percentage of the home’s value, and are available for FSBO listings as well.


Often, home sellers will hire two different real estate agents to list their homes for sale. This is a good strategy if you have multiple family members who would be interested in buying your home.

Real estate commissions can be expensive, but they are necessary to cover the cost of selling or renting a home. It’s important to understand how these fees are calculated and how to avoid them if possible.

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