How Much Is Real Estate Commission?

If you’re thinking about buying a home, you’re probably wondering how much the

real estate commission will be. Real estate commission is a percentage of the

home’s sale price that goes to both the buyer’s agent and the listing agent’s

brokerage. The amount of the commission is usually negotiated between the seller’s

agent and the buyer’s agent.


The typical commission rate is 6%, but the commission amount is negotiable. You

can always ask the real estate agents to lower their commission, but keep in mind

that the more they earn, the more services they can offer you. For example, if you

opt for a flat fee instead of a percentage-based commission, the real estate agent

may not be as willing to provide you with good photography, a thorough market

analysis, and other essential services.


Real estate commissions are not a fixed cost, and they can vary based on local and

national market conditions. Typically, the higher the demand for homes, the higher

the real estate commission will be. The percentage of the sale price that is allocated

for realtor commission is also determined by the contract between the buyer and

seller’s agent.


How much is the New York City real estate commission?

New York real estate commission rates are a bit higher than the national average.

However, as with all things real estate, the commission is largely negotiable and can

be lowered depending on the circumstances and needs of both the seller and the

buyer.Also read

As a general rule, the seller’s agent and the buyer’s agents split the commission in

equal parts, meaning each will receive 3% of the sales price. The total commission is

then paid to the agents’ brokers, who take a cut of the commission to cover costs

such as advertising and office space.


The rest of the commission is then paid to the agents themselves, who often

negotiate a percentage of the remaining fee with their broker. In addition to the

negotiated percentage of the fee, agents also pay taxes on the money they make.

Most agents are independent contractors, so their brokerage doesn’t take taxes out

of their paychecks; they have to file quarterly estimated taxes on the money they

make from real estate transactions.

Ultimately, the amount of the real estate commission is paid at the time of closing. If

the amount of the sale isn’t enough to cover the commission, the seller will write a

check for the difference at closing. In some cases, the seller will have to contribute

to the buyer’s realtor fees as a way to sweeten the deal or help the home sell



Real estate commissions are one of the largest closing costs for sellers, but they are

also the easiest to reduce. If you’re considering selling your home, you can work

with our traditional partner brokers to lower the real estate commission or even

eliminate it entirely. To get started, just contact us and we will be happy to walk you

through the process.