Who Pays Realtor Fees?

Written by Banks Editorial Team
3 min. read
Written by Banks Editorial Team
3 min. read

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Are you planning to buy or sell your home soon? Hiring a reputable real estate agent can help you execute the transaction with ease, saving you time and money. Of course, the services they offer come at a cost that’s well worth it, but it’s vital to understand how realtor fees work to avoid any surprises. 

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What are Realtor Fees?

Realtor fees are the compensation real estate agents receive once the purchase or sale of a home is completed. 

Some real estate agents also hold the REALTOR® designation from the National Association of REALTORS®. It’s important to note that the fee structure for both real estate agents and REALTORS® are the same, so the term “real estate professional” will be used throughout the article to avoid confusion. 

What Do Realtor Fees Cover?

Realtor fees cover a variety of services related to preparing your home for listing, garnering the right attention and attracting top offers. Their services also include: 

  • Market research to determine a fair but competitive asking price
  • Home staging to make the home stand out amongst the competition
  • Preparation of marketing materials 
  • Coordination of open houses for prospective buyers 
  • Support sellers during the entire process, from listing, offer negotiations and inspections to the closing table

On the other side of the transaction, buyers’ agents are paid for performing the following services: 

  • Consult with buyers on affordability and mortgage options 
  • Assist buyers with the home search 
  • Visit open houses and coordinate private showings with sellers’ agents 
  • Conduct market research to identify comparable home sales and draft up competitive offers
  • Work with buyers to negotiate sales contracts that include the necessary contingencies
  • Support buyers through the home inspection, appraisal and closing process

How Do You Calculate Realtor Fees?

Most real estate professionals work on a commission basis. However, some are compensated using a flat-free structure. 

How Much are Average Realtor Fees?

On average, realtor fees are between 5 percent and 6 percent of the property’s purchase price. This amount is generally split between the seller’s and buyer’s agents. 

To illustrate, if you sell your home for $425,000 and the real estate commission is 5 percent, you’ll pay $21,250 in fees. Your agent will receive $10,625, and the agent representing the buyer will receive the other $10,626. 

Who Pays for Realtor Fees in a Home Sale?

The seller typically covers realtor fees in a home sale. However, if you opt to sell your home on your own through what’s known as a “For Sale By Owner” transaction, you can avoid having to pay a portion of the fees as there’s no seller’s agent. 

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Skip the headaches and hassles of selling your home traditionally. No Showings, No Open Houses, No Stress. Get a free offer today!

How and When Do You Pay Realtor Fees?

Realtor fees are paid at closing. Once the funds are dispersed, most agents dole out a portion of the fee to their brokerage and any other professionals who assisted them with the transaction. 

Can You Negotiate Realtor Fees?

Yes, realtor fees are negotiable. However, there are no federal or state regulations mandating that they be set at a certain percentage, so you can ask the agent to charge you a lower fee when selling your home

Save on Realtor Fees When Selling Your Home

You can avoid the hassle of having to deal with realtor fees by selling your home to Offerpad. The process is fast and simple, and you can close on your home in less than a month.

Here’s how to get started: 

  • Step 1: Request a cash offer. Complete a five-minute questionnaire, and Offerpad will respond with a cash offer in just 24 hours.
  • Step 2: Analyze your offer and view other options. Along with your cash offer, you’ll receive the option to list with Offerpad to test out the market.
  • Step 3: Decide which option works best for you. Accept the cash offer and prepare your home for listing.

If you decide to move forward with an Express Cash Offer, you’ll enjoy a host of benefits, like: 

  • A fast, seamless transaction that doesn’t involve listing your home, showings or tedious negotiations 
  • The ability to select a closing day that’s convenient and works for your busy schedule (up to 60 days from the date of offer acceptance) 
  • A free local move with professional movers if you’re relocating within a 50-mile radius
  • A complimentary three-day extended stay so you don’t have to scramble to gather your belongings and move out of your home

But maybe you want to test the market to see if you can attract top dollar for your home? If so, you can use the Flex program to list with confidence and take advantage of these perks: 

  • Complimentary services, like deep cleaning, carpet shampooing, pool cleaning and landscaping, to make your home shine
  • An interest-fee advance to make much-needed upgrades and repairs, like flooring, painting, fixture, countertops and appliance replacements, to your home so it can attract the right buyers and lucrative offers 
  • Keep your cash offer in your pocket just in case and have the opportunity to redeem it within 60 days 
  • Access to a real estate professional with experience selling homes in your community and who knows what it takes to get your home the traffic and offers it deserves

Ready to get started? Visit the website to get your free, no-obligation cash offer or view other options to sell your home today! 

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