How to Understand Real Estate Commission

If you are in the market to sell your home, a good real estate agent is an invaluable asset. Agents help their clients navigate the market and find potential buyers, and in return for their time and expertise, they charge commission fees.

What Is the Average Real Estate Commission?

According to a nationwide agent survey by Clever Real Estate, the national average is 5.45% of a home's final sale price. However, the actual answer to that question really depends on which state you’re in.

Who Pays Real Estate Commission Fees?

It is the seller’s responsibility to pay real estate commission fees. That means sellers pay for both their own agent for listing the property as well as the buyer's agent.

What Do Real Estate Commission Fees Cover?

Real estate agents charge a commission for their time, services, and expertise. A good real estate agent will make the home-selling process much smoother and should have a large network of potential buyers to show your property.

Can I Negotiate Real Estate Commission Fees?

Yes, you can negotiate commission fees, and you should! In the current seller’s market, agents know that clients can easily look elsewhere if they think their rates are too high.

Are There Ways Around Paying Commission Fees?

To avoid paying commission fees, homeowners can choose to forgo an agent altogether and use a local multiple listing service (MLS), which typically charges a flat fee between $99-$500.

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