{"id":225,"date":"2021-05-06T19:30:00","date_gmt":"2021-05-06T19:30:00","guid":{"rendered":"https:\/\/www.prudentialcal.com\/?p=225"},"modified":"2023-08-18T08:17:50","modified_gmt":"2023-08-18T08:17:50","slug":"what-is-the-going-commission-rate-for-real-estate","status":"publish","type":"post","link":"https:\/\/www.prudentialcal.com\/what-is-the-going-commission-rate-for-real-estate\/","title":{"rendered":"What is the Going Commission Rate for Real Estate?"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.prudentialcal.com\/what-is-the-going-commission-rate-for-real-estate\/#What_Is_Real_Estate_Commission\" >What Is Real Estate Commission?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.prudentialcal.com\/what-is-the-going-commission-rate-for-real-estate\/#Average_Realtor_Commission_2021\" >Average Realtor Commission 2021<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.prudentialcal.com\/what-is-the-going-commission-rate-for-real-estate\/#Average_Realtor_Commission_Rate_by_State\" >Average Realtor Commission Rate by State<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.prudentialcal.com\/what-is-the-going-commission-rate-for-real-estate\/#Where_does_the_Commission_Come_in\" >Where does the Commission Come in?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.prudentialcal.com\/what-is-the-going-commission-rate-for-real-estate\/#How_are_Real_Estate_Commissions_Set\" >How are Real Estate Commissions Set<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_Real_Estate_Commission\"><\/span><strong>What Is Real Estate Commission?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When your house goes on sale, your agent gets a percentage of the final price that accounts for their commission. If there are two agents involved\u2014the realtor agent who helps the sellers sell the house and the buyer agent who gets the buyers to close the deal\u2014then the commission is usually split between the two of them. It could also be accomplished by a single real estate agent, which could mean them keeping the entire commission.<\/p>\n\n\n\n<p>While a handful of realtors might work on salary, the majority of them work on the more popular commission model.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Average_Realtor_Commission_2021\"><\/span><strong>Average Realtor Commission 2021<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The <a href=\"https:\/\/consumerfed.org\/reports\/hidden-real-estate-commissions-consumer-costs-and-improved-transparency\/\">CFA\u2019<\/a>s analysis shows that the going estate agent commission rate averages between 5 to 6% of the home sale price. This has remained the average, in the U.S, for nearly a century. The percentage rises or drops slightly year-to-year.&nbsp;<\/p>\n\n\n\n<p>Last year (2020), saw an unusual trend with increased sales and more tech use, the average realtor commission rate dropped from <a href=\"https:\/\/www.bankrate.com\/real-estate\/real-estate-commissions-fall\/\">6% to 5%<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Average_Realtor_Commission_Rate_by_State\"><\/span><strong>Average Realtor Commission Rate by State<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The average rates may vary from state to state for real estate commissions. Determined by state-to-state variations, the lowest to the highest rate difference could be as much as one whole percentage point. For example, 4% in some states compared to 6% in others.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Where_does_the_Commission_Come_in\"><\/span><strong>Where does the Commission Come in?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The homeowners don\u2019t have to be concerned with this amount. Normally, the estate agent\u2019s commission is taken out of the final sale price. The seller would be the one paying this percentage.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_are_Real_Estate_Commissions_Set\"><\/span><strong>How are Real Estate Commissions Set<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The commission percentage is normally negotiated and set between the seller and the real estate agent. Realtors usually carry out the entire process without payments, with their payment coming only with the closing of the deal.&nbsp;<\/p>\n\n\n\n<p>In case there are two agents\u2014the buyer agent and the seller agent\u2014the total percentage would be divided between them. For instance, if the total commission is 5%, the buyer agent would be getting half (i.e., 2.5%), and the seller agent would be getting the other half.<\/p>\n\n\n\n<p>Some other factors work to determine the exact commission percentage, such as the house, the time, and the current position of the market.<\/p>\n\n\n\n<p>Are you looking to buy or sell a piece of real estate? Do you have the professional consultation of a real estate agent?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What Is Real Estate Commission? When your house goes on sale, your agent gets a percentage of the final price that accounts for their commission. If there are two agents involved\u2014the realtor agent who helps the sellers sell the house ...<\/p>\n","protected":false},"author":4,"featured_media":227,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[21,20,19],"class_list":["post-225","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate","tag-average-realtor-commission","tag-going-commission-rate","tag-real-estate-agent-commission"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What is the Going Commission Rate for Real Estate? - Prudential Cal<\/title>\n<meta name=\"description\" content=\"While a handful of realtors might work on salary, the majority of them work on the more popular commission model.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.prudentialcal.com\/what-is-the-going-commission-rate-for-real-estate\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is the Going Commission Rate for Real Estate? 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