A real estate commission is a professional service fee charged by a real estate agent for the purchase or sale of a home. The fee covers thesuccessful transfer of real property from one party to another. Most commonly,the fee is a pre-negotiated percentage of the property selling price and is paid to the listing broker from the seller.
People also ask
What does the average real estate agent commission cover?
The average real estate agent commission covers a wide range of services an agent provides during a home sale.
Who pays the real estate commission when buying a house?
In the simplest terms, the home seller pays the real estate commission for both their listing agent and the buyer agent. That means if you are purchasing a home, you do not pay an agent real estate commission but you may still be responsible for closing costs.
Can a real estate agent lower their commission?
Some agents will also lower their commission fees if they are representing both the buyer and the seller in a home sale (also known as dual agency; see below). Keep in mind that a lower commission is not necessarily the best option.
How do you calculate Commission on a house sale?
In almost all cases, a real estate commission isn a set fee payment, but a percentage of the total sales price of the home. To calculate the total real estate commission, follow this simple formula: Divide the real estate commission percentage by 100. Multiply this number by the purchase price to get the gross commission.