Back to Articles
For Sellers·Costs & Fees

Understanding Real Estate Commissions

A clear explanation of how real estate commissions work, who pays what, and what you get for that cost.

December 13, 2024·By Greg Franklin
Share

How Commissions Work

Real estate commissions are typically paid by the seller at closing. The total commission is split between the listing agent and the buyer's agent.

What's Negotiable

Commissions are not set by law - they're negotiable between you and your agent. Different agents and brokerages have different structures.

What You're Paying For

From Your Listing Agent

  • Market analysis and pricing strategy
  • Professional photography and marketing
  • MLS listing and syndication
  • Showing coordination
  • Offer negotiation
  • Transaction management through closing
  • Problem-solving when issues arise

From the Buyer's Agent (indirectly)

  • Bringing qualified buyers to your home
  • Helping buyers get financing
  • Managing the buyer side of the transaction

Questions to Ask

When interviewing agents, ask:

  • What's your commission structure?
  • What services are included?
  • How will you market my home?
  • What's your communication style?
  • Can you provide references?

The Bottom Line

Commission is one factor in choosing an agent, but not the only one. An agent who prices your home right and negotiates well can easily make up the difference in commission through a better sale price.

I'm happy to explain my fee structure and what you'd receive for that investment. The goal is getting you the best net result, not just the lowest commission.

Found this helpful? Share it with others.

Share

Stay Updated

Newsletter coming soon. In the meantime, follow me on social media for the latest real estate insights.

Have Questions?

I'm happy to discuss your specific situation and answer any questions.