Real Estate Agent Commission Fees Explained
Learn how fees work for buyers and sellers.
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An overview of traditional brokerage fees and how you save with Redfin
Whether you’re buying or selling a home, you are likely to work with a real estate agent. It’s important to understand the fees associated with real estate services and who pays what.
How do real estate agents get paid?
The home seller pays agent fees for both their agent and the buyer’s agent at closing. The total commission is typically 5%–6%, with half paid to the seller’s agent and half to the buyer’s agent.
If you are the buyer, you don’t pay commissions, but will pay closing costs. Buyers who work with a Redfin Agent get a refund at closing, which can be applied to closing costs.*
Sellers can ask their listing agent if his or her commission is negotiable. If your agent requires you to sign a contract, be sure to read it carefully and negotiate before you sign. In a Redfin survey, a majority of home sellers said they received a discount on the commission they paid to their agent.
Ask your agent about their terms upfront. What is their cancellation fee? How many days is the contract in effect? Is there a clause for "out of my control" canceling (death in the family, life changes, etc.)? Make sure you read your agent’s contract carefully before you sign.
Save with a Redfin Agent
When you sell your home with a Redfin Agent, no negotiation is needed. We believe in total transparency and charge every client the same amount. Instead of the standard 2.5%–3%, with Redfin you’ll only pay a 1.5% listing fee (1% in certain markets).** Plus, we never charge fees for services like professional photos and digital marketing. On average, homes listed with Redfin sell for $3,000 more than comparable homes listed by other brokerages.†
When do you pay?
Real estate agents are typically paid during the closing process, so if you don’t sell your home or fail to close, you won’t be charged commission. There can be exceptions based on the agent’s contract, so read it carefully before you sign.
*Redfin Refund is not available where prohibited by law, including in Alabama, Alaska, Iowa, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, Oregon, and Tennessee. Subject to lender approval and minimum commissions. See full terms and conditions.
**Minimum commissions apply. Buyer's agent commission not included. See full terms and conditions.
† $3,000 is an average of the differences between the sale and list prices of Redfin listings versus those of comparable listings by other brokerages, based on a 2016 study.
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