Understanding Real Estate Commissions: What Buyers & Sellers Need to Know 💰🏡

Ever wonder how real estate agents get paid? Whether you're buying or selling, understanding how real estate commissions work can help you make smarter decisions during the transaction.

💼 What Is a Real Estate Commission?

A real estate commission is the fee paid to the agents involved in a home sale, typically a percentage of the final sale price (usually around 5–6% total).

➡ This amount is usually split between:
✔ The listing agent (representing the seller)
✔ The buyer’s agent (representing the buyer)

🏡 Who Pays the Commission?

Technically, the seller pays the entire commission at closing. However, the buyer indirectly pays too—since it's typically factored into the final price of the home.

🔍 Can Commission Rates Be Negotiated?

Yes! While standard in most markets, real estate commissions are negotiable. A top agent will be transparent about what you get for that fee, including:
✔ Marketing & photography
✔ Negotiation expertise
✔ MLS exposure
✔ Open houses
✔ Transaction coordination

💡 Why It’s Worth It

Paying a professional often leads to a faster sale, a higher final price, and smoother negotiations. In fact, homes sold with agents typically sell for more than FSBO properties.

📩 Got questions about commission costs or what's included? Let’s chat and I’ll break it down for your unique situation.