Who Pays Real Estate Commission?

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

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Do you have plans to sell your home soon? You may be considering a real estate agent to help get your home in front of the right prospective buyers and sell it fast. But will you have to pay for their services, or is that the buyer’s responsibility? This guide answers that question and other information you should know about real estate commissions. 

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What Are Real Estate Commissions?

Real estate commissions are the fees being paid to the sellers and buyers’ agents when a home is purchased. These costs are covered by the seller in most instances. 

How Much Are Real Estate Commissions 

Real estate commissions are between 5 and 6 percent of the purchase price. The amount is split between the buyer’s agent and seller’s agent and may be negotiable. 

What Do Real Estate Commissions Cover?

Since you’ll be footing the bill, you probably want to know what real estate commissions cover. Here’s an overview of what you’ll be paying for: 

  • The listing agent or real estate agent representing the seller is compensated for providing guidance on pricing the home and preparing the materials needed to market it to the right potential buyers. Listing agents can also assist the seller with getting the home staged to make it shine, offering repair advice following the home inspection and advising sellers on which purchase offers to consider. 
  • The buyer’s agent is responsible for identifying properties that could work for their client by searching the MLS. This individual should also coordinate with the listing agent to schedule showings and help their client negotiate the best deal on a property that works for them. 

Can You Negotiate Real Estate Commissions?

Yes, particularly if you’re involved in a dual agency sale where the same real estate agent represents both parties. However, negotiating a lower fee can be a bit more challenging if you’re dealing with an established agent who’s a fixture in your market. Still, it doesn’t hurt to try and ask if the agent would be willing to offer concessions in the form of a commission rebate to the buyer at closing. 

Sell Your House Fast

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

Who Really Pays For These Fees?

Although the seller is technically responsible for paying the commissions, the fee comes from the pool of funds the buyer pays to the seller to purchase the property. In turn, some sellers include the commissions in the asking price to avoid cutting into profits when it’s time to finalize the sale of the home and head to the closing table. 

Alternatives To Paying Real Estate Commissions

You have options if you’re selling your home soon and would prefer not to pay real estate commissions. 

Sell Your Home With an iBuyer

Get a cash offer for your home in just 24 hours from Offerpad. The iBuyer‘s Express option lets you sell your home without listing it, and there are no showings. Plus, you can select your closing day and get an extended stay of up to three days if you need more time to relocate. Moving costs are also covered if your current home is no more than 2,800 square feet, your belongings weigh 13,000 or less, and you’re moving within 50 miles.

Visit Offerpad’s website today to get a cash offer for your home or learn more about how it works. 

For Sale by Owner (FSBO)

As a seller, you have a right to work directly with a buyer’s agent or buyer. You’ll cut costs using this approach, but you may find it challenging to market your home without access to the right tools. 

Get A Discount Real Estate Broker

You could connect with a broker that offers real estate services at a discounted rate. The only major drawback is that you may have to compromise and handle some of the tasks associated with selling a home on your own. 

Opt For a Flat-Fee Realtor

Some realtors accept compensation on a flat-fee basis. So, you’ll pay a set rate instead of a percentage of the purchase price in commissions.


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