Southern states have some of the country’s  highest commission rates - HousingWire (2024)

FAQs

Southern states have some of the country’s  highest commission rates - HousingWire? ›

Listing agents tend to receive commissions ranging from 1% to 4%, with an average of 2.83%, according to Clever. Buyers' agents earn a slightly lower average commission rate of 2.66%. The five states with the highest commissions are West Virginia, Mississippi, Wyoming, Alaska and Kentucky.

The average real estate commission in Florida is 5-6%. However, agents can ask for different fees depending on the city they work in. Listing agents are in higher demand in large cities like Jacksonville and Miami. As such, agents may ask for a commission of 6%.

First is the total commission paid by the seller. In California, it ranges anywhere from 1-6% of the sales price. The standard is 5-6%, but for high-priced properties (i.e. $1+ million) the commission may be more like 4-5%. The amount is negotiated between the seller and listing agent before a contract is signed.

The average New Hampshire real estate commission is 5.53%. However, this rate may vary based on the agreement, property type, and market conditions. Real estate agent commission rates also vary depending on your location.

What percent commission do most real estate agents charge? The typical commission under the current model has been somewhere between 5 and 6 percent of a home's purchase price, which is then split evenly between the agent representing the buyer and the agent representing the seller.

Listing agents tend to receive commissions ranging from 1% to 4%, with an average of 2.83%, according to Clever. Buyers' agents earn a slightly lower average commission rate of 2.66%. The five states with the highest commissions are West Virginia, Mississippi, Wyoming, Alaska and Kentucky.

Negotiating Alternatives: Flexibility exists in the real estate market, and negotiations can play a significant role. In some cases, sellers might agree to a lower commission rate, or buyers might negotiate a commission rebate with their agent.

Some employers use the term "commission" to refer to a wide variety of payments. However, legally speaking, a commission is earnings based on a percentage of the price of goods or services an employee is involved in selling.

As of Jun 16, 2024, the average annual pay for a Real Estate Agent in California is $85,825 a year. Just in case you need a simple salary calculator, that works out to be approximately $41.26 an hour. This is the equivalent of $1,650/week or $7,152/month.

Some home buyers avoid working with Realtors® or agents, believing it will save them money. This isn't necessary, however, because the buyer is not responsible for paying any real estate commission.

What is the highest paying job? ›

What is the 80/20 Rule exactly? It's the idea that 80% of outcomes are driven from 20% of the input or effort in any given situation. What does this mean for a real estate professional? Making more money in real estate is directly tied to focusing your personal energy on the most high value areas of your business.

Realtor commission is the fee you pay to real estate agents when you sell your home. In Florida, this commission is usually between 5% and 6% of the home's selling price.

Our December 2023 survey of local agents found that the average real estate commission in Los Angeles is 5.38%, which is less than the national average of 5.49%. Calculate your estimated commission in California. The average total real estate agent commission rate in Los Angeles is 5.38% of the final sale price.

These fees can vary based on a number of factors, including the purchase price of the home, the location of the property, and the lender's requirements. In Florida, buyers can expect to pay an average of 2%-5% of the purchase price of the home in closing costs, with the higher range being for financed purchases.

For decades, the seller of a house would pay the commission of the buyer's agent, which has usually been 5-6%. If a new settlement is approved, that rate could be cut in the next few years, according to Stephen Brobeck with the Consumer Federation of America.

Florida Real Estate Commission (FREC)

Qualifications: The Commission has seven members appointed by the Governor and confirmed by the Senate. Four FREC members must be Florida licensed real estate brokers, who each must have held an active license for five years before they join the commission.