What Percentage Do Realtors Get?
There is no fixed commission rate in the real estate industry. In fact it is illegal for agents to fix their prices in an area by all agreeing to charge the same commission rate. While there may be no fixed commission rate for every realtor, there are industry traditions when it comes to them. The industry tradition is to charge a 6% commission rate. Therefore most realtors you find will charge between 5% and 6% in commission fees.
The percentage take your agent gets from selling your home is then split between your agent, and the buyer’s agent. In most cases the buyer’s agent and listing agent split the commission evenly. For example, say the selling price of a home was $250,000 and the listing agent charges a 6% commission rate. The total take in commission would then be$15,000. Which would then be split evenly to make each agent’s take $7,500.
Negotiating an Agent’s Commission
It is important to remember that commission rates are always negotiable. If an agent sets their commission rate at 6% you may be able to talk them down to 5% if you get creative with your negotiation. For example, you could work out a deal where their commission would vary on how quickly they sold your home. There are many arrangements that could be made when concerning the commission rate. So if you love an agent but not their commission rate, don’t give up on them too quickly. You may be able to work out a deal that would benefit both of you. At the end of the day you and your agent must agree on their commission rate before the process of selling your home even begins.
