{"id":26130,"date":"2021-08-20T17:38:45","date_gmt":"2021-08-21T00:38:45","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=26130"},"modified":"2026-04-07T00:12:37","modified_gmt":"2026-04-07T07:12:37","slug":"realtors-cut-of-the-sale","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/realtors-cut-of-the-sale\/","title":{"rendered":"The Realtors Cut of the Sale: 6% Commission Breakdown by Sale Price"},"content":{"rendered":"

The average Realtor\u00ae\u2019s cut of the sale is 6% of the home sale price<\/a>. The commission is split between the listing agent and the buyer\u2019s agent to compensate them for their services. It\u2019s customary for the seller to pay the commission, deducting money from the sale price.<\/p>\n

For all the details on agent commission, we interviewed Jeff Reynolds<\/a>, a real estate agent in La Plata County, Colorado, with more than seven years of experience. We\u2019ll explain what commission covers and in what circumstances sellers pay less than 6%.<\/p>\n

\"Break<\/a>
Source: (Andre Taissin \/ Unsplash)<\/figcaption><\/figure>\n

Breaking down the Realtor\u00ae\u2019s cut of the sale<\/h2>\n

As mentioned previously, the 6% commission is split between the listing agent and the buyer\u2019s agent. Take a look at how this percentage translates into dollars per the following home sale prices:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Home sale price<\/b><\/td>\nTotal agent commission (6%)<\/b><\/td>\nCommission per agent (3%)<\/b><\/td>\n<\/tr>\n
$150,000<\/td>\n$9,000<\/td>\n$4,500<\/td>\n<\/tr>\n
$250,000<\/td>\n$15,000<\/td>\n$7,500<\/td>\n<\/tr>\n
$350,000<\/td>\n$21,000<\/td>\n$10,500<\/td>\n<\/tr>\n
$450,000<\/td>\n$27,000<\/td>\n$13,500<\/td>\n<\/tr>\n
$550,000<\/td>\n$33,000<\/td>\n$16,500<\/td>\n<\/tr>\n
$650,000<\/td>\n$39,000<\/td>\n$19,500<\/td>\n<\/tr>\n
$750,000<\/td>\n$45,000<\/td>\n$22,500<\/td>\n<\/tr>\n
$850,000<\/td>\n$51,000<\/td>\n$25,500<\/td>\n<\/tr>\n
$950,000<\/td>\n$57,000<\/td>\n$27,500<\/td>\n<\/tr>\n
$1,050,000<\/td>\n$63,000<\/td>\n$31,500<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

On average, the listing agent keeps around 75% of their commission<\/h3>\n

The listing agent doesn\u2019t simply pocket their 3% commission. The agent splits their commission with their broker<\/a> based on a previously agreed-on ratio. These split rates can vary; however, it\u2019s common for the listing agent to give their broker anywhere from 30% to 50% of their commission (for a 50\/50 or 70\/30 split)<\/a>, depending on the market size and brokerage.<\/p>\n

The agent also spends a significant portion of their commission on marketing services like professional photography, staging, and advertising materials to attract buyers to the property. Once the agent covers these obligations, they typically pocket around 75% of the commission (before taxes, of course).<\/p>\n

\"WHERE-DOES-A-REAL-ESTATE-AGENTS-COMMISSION-GO_-2-666x411\"<\/a>
Based on the average listing agent commission for a median-priced sale as of Nov. 2020<\/figcaption><\/figure>\n

Commission is negotiable \u2014 but a major discount is a red flag<\/h3>\n

Like most things in real estate, you can negotiate commission with Realtors\u00ae. Sellers may ask their real estate agent for a lower commission rate or for a buyer to cover some of the commission costs. Agents may also offer lower rates as a means of attracting more clients<\/a>. That said, the top-performing agents are less likely to lower their commissions, as they know their worth and don\u2019t want to devalue the importance of the services they provide.<\/p>\n

\u201cThere are many agents that provide a discount to our services. But the fact is we put a lot of effort into the sale of any given property and certainly put a lot of effort into the business in general,\u201d Reynolds comments.<\/p>\n

While you\u2019re only spending 10 to 12 hours face-to-face with your agent, they\u2019re working tirelessly behind-the-scenes marketing your property, analyzing the market, communicating with buyers, and navigating paperwork to keep your home sale on track.<\/p>\n

Low commission agents offer fewer services for a discount<\/h3>\n

Some real estate agents market themselves as \u201clow commission agents,\u201d offering minimum services for a flat fee or a commission as low as 1% to 1.5% of the sale. These services typically include, but are not always limited to:<\/p>\n