Evaluate Commission Fee of a Real Estate Agent on Your Home Sell

Emma Jones
4 min readJun 19, 2019

If you’re planning to sell your home through a real estate agent, then you must first know the commission amount that the agent will charge and how much you’re willing to pay them. According to most of the best realtors across the US, it is important to negotiate and finalize the commission amount to avoid unpleasant surprises after you have signed the deal. After all, all the top real estate agents and home sellers want to close deals on a positive note so that they can build a long-term and trust-based relationship and work together in the future.

For starters, you need to understand what a realtor’s commission means. Simply put, it can be described as the fee that a real estate agent earns on the sale of a home. The commission is split between the seller’s and buyer’s agents to cover the resources and time spent in making the sale happen. In recent years, commissions on home sales have averaged over five percent of a home’s selling price. But it can run higher or lower than the average, depending on different factors, such as:

  • The region
  • Experience and expertise of the agent
  • The type of property being sold
  • Services offered by the agent, such as arranging open houses, creating online listings, coordinating inspections, taking property photos and negotiating the contract with home buyers.

Therefore, home sellers must keep these factors into account when calculating and evaluating the average commission fee of a real estate agent. Also, the details related to the commission should always be laid down in the listing agreement (a contract that the home seller signs with the agent). It should clearly mention the commission terms and describe the services that the real estate agent will provide to ensure and facilitate the sale. Although not all agents are open to negotiation, you can definitely find a realtor who’s willing to show some flexibility in this area.

Understanding How to Evaluate the Average Commission Fee of a Realtor

Here’s a quick overview on how to evaluate the average commission fee of your realtor:

Multiply the percentage of the commission with the purchase price of the home. This will help you determine the total commission amount. For example, if the rate is 5.5 percent and the property’s purchase price $200,000, then the total will be $11,000.

Next step is to sit down with your realtor and discuss the estimated commission before signing the contract. For example, some agents will have arrangements where they charge a certain percentage on the first $10,000 of the home’s value and then a smaller percentage on the remainder of the house. It is quite rare if the commission is a flat fee.

Keeping the standard arrangement in mind, your realtor may split his or her commission 50/50 or at another percentage with the buyer’s agent because in the general rule in the US is that the seller’s agent pays a commission to the buyers’ agent.

Why Don’t All Realtors Charge the Same Commission?

It is important to understand that not all realtors charge the same amount. They are not similar to each other because the more expensive real estate agents offer services and profit models to their sellers in comparison to discount agents. Simply stated, real estate agents, get paid what they are actually worth.

Therefore, you must do some legwork and browse through a list of top realtors to compare and evaluate the average commission fee of each of them in order to find the right real estate agent that suits your needs and is within your budget. When evaluating a realtor’s commission, take into account the average of your local area, agent’s experience and market knowledge, services offered and the desirability of the property. You also must note that the best realtors are unlikely to be the cheapest. It’s all about the value that they can offer to you.

However, the good news is that even top real estate agents are willing to negotiate. Although they may not agree to a reduction in commission right off the bat, they will bend if you negotiate with them.

So, if you’re a potential home seller looking for quality assistance from an experienced real estate agent, then browse through our list of top realtors in your local area today. Narrow down your choices and meet up with them to discuss your home selling needs and negotiate the commission amount. However, it is advisable that you don’t get so hung up on commission that you let go of some of the best realtors that you can find.

Originally published at https://www.fastexpert.com on June 19, 2019.



Emma Jones

Hey everyone, this is Emma and I share here everything you need to know about real estate like buying or selling a home & how to choose the right agent for you.