What is the Average Commission Paid to a Real Estate Agent?
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This question in Zillow Advice comes from 4n6chik in California who asks:
“What is the standard commission rate for a sale agent in California? “
“The trend is 6%, but commissions are negotiable. The commission always gets split between a listing agent and a selling agent. It is always preferred that the selling agent receive 2.5% minimum of the agreed commission. Example you pay 5%, the split is 2.5% & 2.5%, if the commission is 4.5%, then the selling agent should get 2.5% and the listing agent gets 2%. I hope this helps.” – Angel & Patty Premier Agent
While a 6% commission was the going rate, things have changed in recent years as evidenced by the responses and, as with anything you buy or hire for, it’s all negotiable.
About the author
Diane Tuman
Diane is Editor-in-Chief at Zillow. She was a newspaper editor for more than 15 years (Albany NY Times Union, Seattle Post-Intelligencer) before moving into the dotcom world (Microsoft, Amazon, Expedia). She joined Zillow in 2005. Her favorite Zillow features include keyword search, knowing how much the White House is worth and the crazy celebrity real estate happenings as reported on Zillow Blog.
Brokers and Agents on both sides of the transaction better wake up and smell what they’re shoveling. We’re just nearing the bottom of the worst recession in decades caused in large part by the real estate market going belly up. Home prices were too high, commissions & fees were definitly not sustainable. Appraisals are a joke. You better be ready to cut those commissions if you intend to survive until better times.
At this stage I wouldn’t work for less than 6%.
“Average” commission is 6%. Period.
Myself as a buyers agent have taken discounts to get Owner Finance deals done, but it doesn’t happen often.
Real Estate agents also put in a lot of work on deals that don’t close. So the 6% sounds like a lot but they also have a lot of wasted time that is covered by the deals that close.
I’ve seen buyers agents lately who offer 50% of his/her commission back to the buyer at closing.. It’s certainly a very competitive climate nowadays.
I always wondered that very same thing. I remember Agents going the extra mile to secure a sale before the current real estate climate but how has the market changed the way they do business?
well i think it has to be negotiable it’s really hard to find a good house or a goo tenant nowadays.
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