Definition
Real estate agent commission is negotiable and typically ranges 4.5%-6% total. Usually split between listing and buyer's agents. Understanding commission structure helps you evaluate agent services and negotiate better rates in certain situations.
Where you’ll meet it
Do I need an agent, and how do I price it?
See it in Selling my home · Step 2About this term
Commission is negotiable and typically ranges 4.5%-6% total (2.25%-3% each agent). Paid at closing from sale proceeds. Sellers typically pay both agents' commissions.
Pro Tip
Commission is negotiable. New markets or motivated sellers may get reduced rates.
Example
5% commission on $400,000 sale: $20,000 total ($10,000 to listing agent, $10,000 to buyer's agent).