In general, the home seller is responsible for paying this fee and the commission is split between the buyer and listing agents who handle the real estate transaction. However, in some situations this could be up for negotiation.
What Percentage Does the Seller Pay the Agent?
In return for the hard work real estate agents put in for their client, they get rewarded in a percentage of the home’s commission.
While the total amount of commission they receive after the sale is based on a percentage, the exact percentage varies between regions. Sellers can generally expect to pay between 4.53% to 6.48% of a home’s final sales price. Nationwide the median is about 5.7% in total commission paid by the seller.
This rate of nearly 6% is actually split between the listing agent and buyer's agent. Typically the split is half to each agent, but every situation is different. For example, the total commission expense could be 5.5% with the listing agent keeping 3% and the buyer's agent keeping 2.5%.
What Does This Mean for Home Sellers?
So now that you know about commission percentages, you’re probably wondering what this means for the seller. Take the previous example into consideration. If you sell your home for $300,000, you will actually only actually receive $282,000 back after you pay your agent. For sellers hoping to receive the full $300,000 sales price, this might come as a disappointment.
Independent Brokerages May Charge Lower Commission Rates
With SimpleShowing, sellers save thousands with our 1% listing fee that automatically lowers total commission to just 4%! Not only that, but you will get the same exceptional service and features of a big firm brokerage.
Looking to reduce your agent commission fee without compromising on service and support. Contact SimpleShowing today to get in touch with one of our local agents in your area. We will help you get the best home at the best price with our low-commission model.