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Prev Next  Andresr/Getty Images 6 min read Published October 13, 2022 CheckmarkExpert verified Bankrate logoHow is this page expert verified? At Bankrate, we take the accuracy of our content seriously. “Expert verified” means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced. Their reviews hold us accountable for publishing high-quality and trustworthy content. About our Review BoardWritten by Kellye Guinan Written by Kellye GuinanArrow Right Kellye Guinan Edited by Troy Segal Edited by Troy SegalArrow RightSenior homeownership editor Troy Segal is Bankrate's Senior Homeownership Editor, focusing on everything from upkeep and maintenance to building equity and enhancing value. Troy Segal Reviewed by Jeffrey Beal Reviewed by Jeffrey BealArrow RightPresident, Real Estate Solutions Jeffrey L. Beal, president of Real Estate Solutions, has 40 years' experience in multiple phases of the real estate industry. If you're in the market to buy or sell a home, odds are you'll work with a real estate agent to help you through the process. Most real estate agents are paid for their services through commissions that are based on a percentage of the property's selling price. How much money agents make each year depends on a number of factors, including the number of transactions they complete, the commissions they bring in, and the split with their sponsoring broker. Here's a rundown of how real estate agents get paid—and how much they make. What percentage do realtors make from a sale? | Who pays realtors? | How much do real estate agents make on commission? | How to negotiate realtor commission Across the U.S., real estate commission varies by location and between individual agents. Currently, the average real estate commission rate nationwide is 5.37% of the home's final sale price. This fee is typically split equally between the listing and buyer's agents who handle the transaction, and comes out of the seller's proceeds. If you're selling your home, realtor fees will make up the bulk of your costs. Due to this, consumer advocates argue that real estate commission is both too expensive and too confusing[1] in its current structure. Plus, although commission is theoretically negotiable, real estate agents are often reluctant to budge on fees. In a survey of 200 agents, the Consumer Federation of America found that 73% of agents say they won't negotiate their commission.[2] Thankfully for consumers, the old commission model appears to be on the brink of sweeping change. Class action lawsuits,[3] antitrust lawsuits,[4] and emerging real estate business models are transforming the percentage realtors usually make on a sale. For example, Clever negotiates low commission rates for home sellers with top agents from brokerages like Keller Williams and Century 21. Our partner agents provide full service and support while a charging low listing fee of just 1%, instead of the typical 2.5-3%. Find a top real estate agent near you today and save thousands on realtor fees! Get the latest real estate news and tips with our free weekly newsletter.Sign upWhat percentage do real estate agents make?While realtor commission fees vary regionally, the average seller can expect to pay between 4.45% to 6.34% of the home's final sale price, according to our research. The U.S. average is currently 5.37%. The listing agent usually receives 2.72% of the proceeds. The remaining portion of the commission fee — 2.65% on average — goes to the buyer's agent. 📊 Why do commission rates vary? Real estate commission, by the numbersTo illustrate how commission costs add up, let's say you sold your home for $250,000. Under the traditional 6% commission rate, you would pay $15,000 in commission fees. Your listing agent would split this fee with the buyer's agent, so each would receive $7,500. Now, let's compare that to what you'd pay a low commission real estate agent. If you paid 4% commission (1% listing fee, plus 3% buyer's agent commission), the total would be $10,000. You'd save $5,000! 💰 Never pay the full 6% commission againThe "standard" 6% commission predates the internet, when realtors had to work harder to find clients and potential buyers. At Clever, we connect top-rated real estate agents with sellers like you at zero upfront cost to the agents — so they’re willing to pass savings along to you. You'll get full-service support for pre-negotiated listing fees of just 1% or $3,000, saving you thousands! Save ThousandsWho pays realtors?Traditionally, the seller pays the full commission fee to their listing agent. The specific details of your realtor's commission will be explained in your listing agreement (the contract that you sign with your agent). From there, the listing agent will split a portion of the commission — typically half — with the buyer's agent. In most cases, both agents share a portion of their commission with their brokers. 🔎 Why does the seller pay buyer's agent commission? » MORE: 30 of the Most Common Real Estate Questions, Answered How much do real estate agents make on commission?On paper, listing agents receive $8,087 to $11,343 from the average home sale, while a typical buyer's agent commission ranges from $7,836 to $11,343. However, the average realtor's take home pay in the U.S. is only around $6,007. This is obviously much less than the commission fees you'll pay at closing. Most real estate agents work through a brokerage, such as Keller Williams, Coldwell Banker, or RE/MAX. Because brokerages cover certain overhead costs, agents are required to pay them a portion of their commission after the sale closes. An agent's exact take home pay depends on the agreement they've worked out with their brokerage. In general, more experienced agents keep higher percentages of their commission than less experienced ones. Take home fees for the average sale* 🧑 Listing agent $4,868 to $7,100 🏢 Broker $3,245 to $4,715 💰 Total listing fees $8,113 to $11,787 *Estimates for 2022 Can you negotiate realtor commission?In theory, realtor fees are negotiable. But in practice, agents are often unwilling to budge on their rates. There are a few situations that will give you a better chance of negotiating commission:
In the first two cases, one agent will be able to collect both a listing fee and buyer's agent commission. Because the agent stands to earn more, they may be willing to offer a discounted rate. Or, if you're in a very competitive market, you may have more power to negotiate lower rates. However, agents are under no obligation to agree to your terms, and many simply say no. » LEARN: How to Negotiate Realtor Commission Although it can be difficult to negotiate realtor commission on your own, Clever makes it easy to secure a discounted rate — without compromising on service. The typical Clever seller pays just $13,060 in commission, saving an average of $6,154! 👋 Next Steps: Talk to an expert!If you're weighing your options for buying or selling a house, Clever can help! ARTICLE SOURCES [1] Washington Post. "DOJ agreement requires Realtors to offer transparency on real estate commissions." Accessed July 20, 2021. Updated November 24, 2020. [2] Consumer Federation of America. "Hidden Real Estate Commissions: Consumer Costs and Improved Transparency." Page(s) 2. Accessed July 20, 2021. Updated October 2019. [3] New York Times. "July 20, 2021." Accessed July 20, 2021. Updated October 9, 2020. [4] Axios. "Showdown over real estate fees." Accessed July 20, 2021. Updated February 4, 2021. Related linksFAQsWhy do realtors get 6% commission?Traditionally, you'll pay 6% commission in exchange for your listing agent selling your home and the buyer's agent securing a buyer. The full commission is split between the listing agent, the buyer's agent, and both agents' brokers. However, commission rates vary regionally and by agent.Learn more about average commission costs near you. How can I find agents who charge lower commission rates?Today, a growing number of real estate companies can help home sellers save on commission. Instead of paying the typical 6% commission, you can pay as little as 4% commission to sell your home. On a $350,000 home, this could save you up to $7,000 in realtor fees! Ready to save? Find the best low commission real estate brokers near you! What percentage do most realtors charge?Average Realtor Commission: What Percentage Do Most Realtors Charge? In a typical real estate transaction, 3% of the home's sale price goes to the listing agent, and 3% goes to the buyer's agent, for a total of 6%. If you're selling a $600,000 home, for example, this would amount to $36,000 in commission fees.
What percentage of sales do most Realtors make?Real estate commissions fluctuate year to year by up to one percent but remain consistent between around 5% to 6%. While the national average of paying a 5.8% commission is the standard in 2022, some commissions have fallen to as low as 4.9%, according to the National Association of Realtors.
What is a realtor's commission in Alabama?The fee is a percentage of the sale price and is typically covered by the seller. Commission fees vary by state, and it's important to know the range of commission fees in your area so you can accurately calculate the cost. In Alabama, the average commission of a realtor's service is 5.61%.
Do buyers pay realtor fees in Florida?No, as a buyer, it costs you absolutely nothing to use a Realtor. In Florida, real estate sales commissions are paid out of the seller's proceeds. Effectively, that means that buyers don't incur any cost to have a Realtor working for them.
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What percent of a house sale goes to the realtor
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