How to Navigate the Complexities of Estate Sales



The commission split between the listing agent and the buyer’s agent is a topic of debate. Some brokers recommend 5% or 6%, while others advocate a split between the buyer’s and seller’s agents. In any case, a real estate commission is typically paid to the brokerage, which then distributes it among its agents. Read on to learn more about this complicated topic. However, the commission split is not necessarily set in stone, and it can vary widely depending on the state.


A good negotiation tactic for a lower real estate commission is to know what you can ask for and explain why it is more reasonable to pay less than the industry average. Especially if your home is in a hot market, you can leverage information about the speed of sale to get a lower commission rate. Use a real estate heatmap tool, such as Mashvisor’s, to analyze neighborhood metrics like rent, Airbnb occupancy rate, and cash on cash return.¬†Also read


5% to 6%

Many brokers are reluctant to discuss the commission structure of their business publicly. In the same vein, the real estate industry can’t mandate a six percent commission because it would constitute price fixing and violate antitrust laws. According to Hall F. Willkie, president of Brown Harris Stevens, an industry law firm, an agent only earns a commission when they successfully sell a property, which can take months or even a year.

Split between listing and buyer’s agent

In most cases, commissions for home sales are split between the listing agent and buyer’s agent. This is typically a 50-50 split, but the split may be higher or lower. In the example below, the buyer’s agent would receive 3% of the commission for a sale, while the listing agent would receive the remaining 1.5%. For the buyer’s agent, however, the commission is much lower.

Rates vary by state

Real estate commission rates are a common part of the real estate transaction process. On average, a real estate agent receives 5.49% of the purchase price. Although these rates can vary wildly from one state to another, the savings can add up to thousands of dollars. The use of modern technology can help to improve this traditional model without sacrificing quality. In addition to using real estate technology to lower costs, you can choose an agent based on their reputation, experience, and credentials.




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