How Much Are Commissions?

In most areas there is a “customary” percentage that real estate agents expect to earn as a commission. Usually, it is five to six percent of the sales price. However, just like anything else in real estate, this amount is negotiable. When completing the listing agreement, you and your agent will agree on the amount of the real estate commission.

When are Commissions Earned?

The listing contract also specifies when the commission is earned. If a buyer presents an offer that meets your listing price and terms, the agent has effectively earned the commission. If a buyer presents an offer and you reach agreement on price and terms through counter-offers, the agent has also earned his or her commission.

What Are the Commission Used For?

The listing commission goes towards the following expenses:

• Buyers agent (50% of commission)
• Listing Brokerage
  • Listing Agent
  • Marketing
    • For sale sign
    • Brochure box and brochures
    • Staging (negotitable)
    • Professional Photography
    • Video
    • Online featured listing – Realtor.com, Zillow
    • PPC Marketing
    • Just listed campagins
    • Print – newspapers, mailers, etc.
  • Support Staff
  • Travel / auto
  • Insurance
  • Office overhead
  • Taxes