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ListingBidder Resources

Average Real Estate Commission Rates

A total commission of 6% is typically asked for by “full service” Agents working for the big national real estate firms.  70% of Sellers list with the first Agent they speak to, and we find that most Sellers who agree to pay a full 6% commission do not realize that real estate commissions are NEGOTIABLE!

The national average total real estate commission in 2015 was 5.26%.

It is very important to understand that commissions are split between the listing Agent, who works for you to sell your home, and what will be offered on the MLS to any Agent that brings a Buyer to buy your home.

In a typical 6% total commission, the listing Broker is paid 3% and 3% is offered on the MLS to all Agents working with Buyers (so they can see what they will earn if they bring their Buyer to your home and complete the sale).

In a competitive commission structure, ranging from 5% to 5.5%, the listing Agent agrees to a listing commission of 2% to 2.5%, and they will recommend that they offer, on the MLS, a commission of 2.5% to 3.0% to the Buyer’s Agent.  Your Agent will usually tell you that if they offer less than 2.5% on the MLS that your home “won’t be shown”.  This makes sense, in that, all things being equal, the Buyer’s Agent will want as big a payday as possible when they find the right home for their client.  This is also especially true if market conditions favor Buyers in a so-called “Buyer’s Market” (high inventory levels in a period of unstable prices).
  
When you meet with your listing Agent, also remember that, unless they are a “Broker/Owner”, they will have to split their commission with their employing Broker.  High producing Agents can work up to getting 90% of the listing commission from their Broker, but typically less experienced Agents may only receive 50% of the listing commission.

At ListingBidder.com, our first choice for you is to negotiate, on your behalf, a competitive real estate commission structure with highly experienced Broker/Owners who know your local market.  We have found that Broker/Owners have the best ability to negotiate their commissions and to be competitive, in part because they do not have to share their listing commission with anyone else.  This is a direct benefit to you, and will save you money.