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Understand Real Estate Commission

Home Sold For $500,000  Real Estate Commission Cost   ~$30,000 (6%)
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How Does Real Estate Commission Work?

When you sell/buy a home, there are typically two real estate agents involved: the listing agent and the buyer's agent. The listing agent represents the home seller, and the buyer's agent represents the home buyer. Real estate agents must work for a sponsoring broker or brokerage firm.

The listing and buyer's agent brokerages get paid a portion of the home's price at closing, which is called the real estate commission.

The real estate commission are factored into the sales price of the home and are paid out at closing when the home's sale is finalized.

The commission is typically around 6% of the home's purchase price. It is often split evenly to cover the cost of both the listing agent and buyer's agent commissions.

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Who Pays Real Estate Commission?

The seller typically pay real estate commission for both listing and buyer's agents. It's taken out of seller's proceed and paid to the listing and buyer agent's brokerages at closing.

However, the commission is baked into the sale price. The buyer actually is paying the real estate commission to purchase the dream home.

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