Real Estate Commissions: How Much are Agent Fees?

photo by realtor.com

Real Estate agents usually get paid when a deal fully goes through and makes it to the closing table, rather than getting paid hourly or weekly. So, how much do you pay your Realtor and are these fees negotiable? Let’s take a look at this realtor.com article to help answer these questions.

In the past, the home seller paid the full commission for the services of both their listing agent and the buyer’s agent (if the buyer had an agent). However, the National Association of REALTORS recently reached a settlement that went into effect Aug. 17, 2024. It includes several changes between the agent and buyer/seller relationship that benefit homebuyers. In the past, sellers generally paid the buyer and seller’s agent fees. Now that the settlement is in effect, buyers are responsible for compensating their agent. However, as a seller, you have the choice of offering compensation to the buyer’s brokers. Why would you do this? As a way to make your listing stand out by making it more attractive to buyers.

Realtor commissions are negotiable. There are no federal or state laws that set commission rates. But understand that your Realtor can say no to a much lower rate. Remember, you get what you pay for.

People certainly have the option of selling (or buying) their house without a real estate agent, but agents provide clients a wide range of services, including helping you price your home, marketing it (on the MLS, social media, and other venues), negotiating with home buyers, and ushering the home sale through closing.

Read the full article for more detailed information.