While buying or renting a house, you can find ads from the owner, or you can find house ads through a real estate agent. In the houses you find from the realtor, the real estate agent earns a certain amount of money. When you hire a real estate agent, there is a commission rate the agent earns. The average real estate commission changes certain factors. The average real estate commission ranges from 5% to 6%. This commission rate varies according to the real estate agent’s expertise. The real estate agent acts as an intermediary between you and the landlord. The money earned while doing this job is called commission. Well, how does the commission system work, how do realtors get paid? Let’s take a look together.

How do realtors get paid?

The real estate agent earns a profit from the role of intermediary between the buyer and the seller. It takes the winnings equally from both parties. It receives the same amount of commission from the buyer as it receives from the seller. This amount depends on the agreement between them. The person who will buy the house and the person who will sell the house pay the commission to the realtor.

How much is the average real estate commission?

The table below indicates sample house sales prices and 5% and 6% commission amounts.

Home Sale Price %6 Real Estate Commission
$200,000 $12,000
$250,000 $15,000
$350,000 $21,000
$400,000 $24,000
$450,000 $27,500
$500,000 $30,000
Home Sale Price 5% Real Estate Commission
$200,000 $10,000
$250,000 $12,500
$350,000 $17,500
$400,000 $20,000
$450,000 $22,500
$500,000 $25,000


What is a fair commission for a real estate agent?

Depending on the examples you see above, the real estate agent commission rate varies from 5% to 6%. When determining the fair real estate commission, some factors are taken into account. These;

  • The house price
  • How fast the house should be sold
  • The amount of service you demand from the real estate agent

In particular, the house price is the factor that most affects the real estate commission rate. As the house price increases, the average real estate commission rate also increases. In addition, if you request special attention from the real estate agent and the house to be sold quickly, there may be changes in the commission rate. In the agreement between some real estate agent and seller, you can set a lower listing fee. In such an agreement, the seller of the house also makes an effort. This, in turn, can lower the property ratio. If you’re looking for a low-cost realtor, you’re in the right place. You can find the best low commission realtor firms hereby EV A Team.

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