If you’re planning to sell your Florida home, you may be wondering about real estate commission. Here’s everything you need to know about real estate agent commissions and low listing fee agents in Florida!
What is a the real estate commission in Florida?
Real estate commission is how real estate agents get paid in a sales transaction. Instead of paying an agent an hourly fee for their time and effort, you’ll pay them a percentage of the proceeds from the sale of the home.
Typically, the buyer’s agent and the seller’s agent split the commission. In most cases, each agent gets half. So, for instance, if you’re selling a $500,000 home at 6% commission, the total commission amount is $30,000. Each agent will receive around $15,000.
The percentage of commission may vary, but 6% is typical, with each agent receiving approximately 3%. The commission split may vary depending on the agents working on the transaction.
Who pays the real estate commission?
Traditionally, the seller pays the real estate commission at closing. Commission is deducted from the amount the seller receives from selling their home.
The commission will cover both the buyer’s agent and seller’s agent fees. In other words, when you sell your home, you don’t receive the full sale proceeds – you will get the sale proceeds minus the commission and fees.
Is it possible to reduce my commission rate?
Since they’re based on a percentage of the sale, the more you’re selling your home for, the larger the commission. However, there aren’t any laws that govern real estate commission rates. They can vary from one brokerage to the next.
While the average agent commission will be around 3% for the buyer’s agent and 3% for the seller’s agent, these fees can be negotiated. To schedule your no-obligation consultation, contact us today.