The real estate agent is a crucial part of the home selling process. They help you price your home, market it on the MLS and other online venues, negotiate with homebuyers and see the deal through to closing. This includes arranging inspections, repairs and closing paperwork.

Commission fees vary between agents. Some charge a percentage of the sale price, while others have flat fees. The fee is generally split between the seller’s agent and the buyer’s agent.

6% Commission (Seller’s Agency)

The listing agent and the buyer’s agent both receive a commission for a successful sale of a home. This commission is usually a fixed percentage of the sales price, such as 6% of the purchase price.

Percentage Splits Between Agents

Brokerages usually have agreements with their agents that split their commissions 50/50 for seller and buyer transactions. This is a good way to ensure that both parties get paid for the same amount of work.


There is also a lot of negotiation that goes into commission splits. Highly productive agents may be able to secure better percentage splits, so they can earn more commission.

It is not uncommon for real estate agents to offer rebates to buyers and sellers. However, most home buyers are not interested in this type of incentive.

Regardless, many people are surprised when they learn that it is common for the real estate agent to be paid a percentage of the total purchase price of the home they are buying or selling.

This percentage can be a set amount, such as 1%, or can be based on the number of transactions the real estate agent brings in for the brokerage.

In some cases, real estate agent fees are also rolled into mortgage payments. This is often done when the home sale is a short sale, and it is not possible for the homeowner to pay for all the costs related to selling their home. Also read


When a property is listed for sale, the real estate agent and the seller sign a contract that spells out the exact commission (typically a percentage) that the listing agent will pay. This fee covers the real estate agent’s time spent on marketing the home, helping to arrange for inspections and appraisals and negotiating repairs and closing fees.


If you are not satisfied with the agent’s fee, it is important to ask for a change before signing a contract. This is especially true if you have an agent who you think is overcharging or has been overcharging you for the past few years.

Negotiating the Real Estate Agent Fee

The real estate agent is an expert in the housing market. They will guide you through the process of buying or selling a home, making sure that all your questions are answered and you have an enjoyable experience.

They will also help you with the negotiation process, such as asking for lower price points. This can save you a lot of money in the long run.