{"id":99938,"date":"2025-05-05T13:51:51","date_gmt":"2025-05-05T20:51:51","guid":{"rendered":"https:\/\/www.redfin.com\/blog\/?p=99938"},"modified":"2025-05-05T13:51:51","modified_gmt":"2025-05-05T20:51:51","slug":"how-much-is-real-estate-agent-commission-buyer-seller","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/blog\/how-much-is-real-estate-agent-commission-buyer-seller\/","title":{"rendered":"How Real Estate Commission Works"},"content":{"rendered":"
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How much is real estate commission?<\/h3>\n<\/div>\n
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Real estate commissions can be negotiated, and the exact terms of an agent\u2019s commission vary from sale to sale, and can depend on the region and which firm they work for.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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Who pays the commission?<\/h3>\n<\/div>\n
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Real estate commissions have always been negotiable. Both buyers and sellers can structure their commission payment for that specific transaction. Sometimes sellers offer to pay buyers’ agent’s commission, but others don’t. In the latter case, in addition to paying\u00a0closing costs<\/a>, if a buyer decided they want representation, they’ll be responsible for paying their agent the agreed upon amount stated on their contract.<\/p>\n

Here\u2019s a breakdown of commission costs based on different home sale prices, using total commission rates of 5%, 3%, and 1.5%.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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Home Sale Price<\/th>\n5% Real Estate Commission<\/th>\n3% Real Estate Commission<\/th>\n1.5% Real Estate Commission<\/th>\n<\/tr>\n<\/thead>\n
$150,000<\/td>\n$7,500<\/td>\n$4,500<\/td>\n$2,250<\/td>\n<\/tr>\n
$200,000<\/td>\n$10,000<\/td>\n$6,000<\/td>\n$3,000<\/td>\n<\/tr>\n
$250,000<\/td>\n$12,500<\/td>\n$7,500<\/td>\n$3,750<\/td>\n<\/tr>\n
$350,000<\/td>\n$17,500<\/td>\n$10,500<\/td>\n$5,250<\/td>\n<\/tr>\n
$500,000<\/td>\n$25,000<\/td>\n$15,000<\/td>\n$7,500<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
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\"CTA<\/h3>\n

Can you negotiate Realtor\u00ae commission fees?<\/h3>\n<\/div>\n
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Absolutely! There are no laws or regulations in the U.S. dictating commission rates, so agents may be willing to negotiate lower rates depending on the type of transaction, the required services, and the relationship. Some agents will also lower their commission fees if they are representing both the buyer and the seller in a home sale (also known as dual agency; see below).<\/p>\n<\/div>\n

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Keep in mind that a lower commission is not necessarily the best option. Part of the agent\u2019s fee covers the marketing budget and other business expenses for the home sale. A smaller budget could mean your agent can\u2019t maximize marketing your home. So while it\u2019s important to consider an agent\u2019s fee, it\u2019s also important to consider the value you will be receiving.<\/p>\n

Redfin offers no-hassle pricing. We show you how much you will pay\u2014and how much you will save\u2014in every home sale. Talk to a\u00a0Redfin Agent<\/a>\u00a0to learn the exact amount you can save.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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What does the commission cover?<\/h3>\n<\/div>\n
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The average real estate agent commission covers a wide range of services an agent provides during a home sale. These services can include: working with the seller to set a realistic price for the home, marketing it through a variety of online and offline channels, professionally presenting the home to potential buyers, negotiating the transaction details, being present during inspections and appraisals, and ultimately closing the sale.<\/p>\n<\/div>\n

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Do agents split the commission?<\/h3>\n<\/div>\n
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As mentioned earlier, one arrangement is to split the commission evenly between the buyer\u2019s agent and the listing agent, though this can vary based on several factors and the terms of the contract. For example, if a home sells for $250,000 with a 6% commission, and the parties have agreed to split the commission equally between the agents, the total commission of $15,000 would be split, with each agent receiving $7,500.<\/p>\n

It\u2019s important to also note that after the initial split, the commission may then be divided between the broker and the agent. So, the actual agent may only get 1.5% of a 6% commission.<\/p>\n