How Much Is Real Estate Commission?

Buying or selling property is often one of the biggest financial decisions consumers

make in their lifetime. As a result, the fees associated with this process can seem

confusing and overwhelming. Real estate commissions, in particular, can be a

mystery for many. However, understanding the amount and how they work can help

consumers make better financial choices and feel confident in their real estate



The most common fee is the real estate agent’s commission. This is typically a

percentage of the final sales price of a property. In most areas, the standard real

estate commission rate is 6%. However, this amount can vary based on market

conditions and local rules and regulations. For more


Real estate agents earn their commission by providing a wide range of services to

both buyers and sellers, from scheduling property showings to marketing properties

and negotiating terms of sale. While this may sound simple enough, the reality is far

more complex and involves significant time and effort on behalf of the agent. For

this reason, real estate agents are generally well worth the negotiated commission

they receive for their services.


For example, if a home sells for $250,000 under the standard 6% commission, the

seller’s agent would receive $33,000 and the buyer’s agent would receive $15,000.

Additionally, a broker usually charges a desk fee for the use of their firm’s resources.

This amount can also vary between brokerages. In some cases, the agent might

keep 60% of the commission while the broker keeps 40% or more. More experienced

and top-producing agents are usually compensated at a higher rate.


As the real estate market continues to cool, some experts predict that commission

rates will begin to drop as well. However, these changes will likely take time to be

implemented. In the meantime, many real estate brokers are offering reduced or

flat-fee listing options for consumers to choose from. This can help lower the cost of

buying or selling a property while also giving consumers more control over their

commission rate.

The recent lawsuits against the National Association of Realtors (NAR) and several

large brokerages could further reduce real estate commissions across the country.

Some experts predict that these legal decisions will lead to a 30% reduction in the

$100 billion of commissions paid by Americans each year. Other experts, such as

Tomasello, have predicted that these legal decisions could force up to 80% of real

estate agents out of the industry. In the meantime, Hauseit can help NYC

homeowners save up to 6% in traditional broker commissions when they list their

homes using our flat-fee MLS listing service. This can be a great way for

homeowners to avoid paying high real estate agent commissions while still getting

the professional guidance they need during the home-selling process. Learn more

about our service and how it works to get started.