Are you planning to sell your home and wondering about the average real estate agent commissions? It's important to understand the costs involved in selling a property and what you can expect to pay in agent commissions. In this article, we will provide you with valuable insights into the average realtor commission rates in each state based on a comprehensive survey conducted in 2023. Read on to find out more!
Understanding Real Estate Agent Commissions
When it comes to selling a home, it is commonly believed that sellers will typically pay between 5% and 6% in agent commissions. This standard was set many years ago, and most people accept it as the norm. However, it's crucial to remember that commission rates and realtor fees can differ between states and agents.
Image: Realtor Commission Signing Listing Agreement
Though 1% may seem like a small amount, it can add up to a significant sum, especially when you're listing an expensive home. Therefore, it's essential to understand what sellers typically pay in real estate commissions and include it in your budget.
Survey Results: Average Realtor Commission by State
To gain a better understanding of the real estate market, we surveyed 580 FastExpert agents across the United States. The survey revealed that the actual commission rate paid is based on several factors such as the type and location of the property, as well as the price. Let's take a closer look at the average realtor commission in each state based on our survey results for the year 2024.
Image: Average Real Estate Agent Commissions by State (2024 Survey)
Key Takeaways from the Survey
Our survey also revealed some interesting insights about the agents on FastExpert. Here are a few key takeaways:
- FastExpert agents sell homes for an average of 5.67% above the asking price.
- 48.5% of agents charge less than 3% individual commission.
- The average career span of a FastExpert agent is 17.44 years.
- FastExpert agents complete an average of 49.28 transactions annually.
- FastExpert agents are known for being flexible when it comes to negotiating commission rates and realtor fees.
Are Real Estate Commissions Negotiable?
Yes, real estate commissions and realtor fees are negotiable. The seller of the property usually pays the commission, giving them the ability to negotiate with the agent. It's crucial to discuss commission rates and average realtor fees during the interview or hiring process. You can ask the agents if they would be willing to take less or consider a flat fee. Remember, the agent's commission is a percentage of the home's sale price, so if they help you sell your home for more, they make more as well.
However, it's important to note that a lower commission doesn't necessarily mean a better agent. In some cases, agents offering lower commissions may have less experience or provide a lower level of service. Consider the agent's experience, marketing plan, and reputation rather than focusing solely on the commission rate.
What Goes into Realtor Commission?
The amount an agent charges as a commission is influenced by several factors. Apart from the final sale of the house, real estate commissions also cover marketing expenses and the time spent by the average realtor to sell the property. While an experienced real estate agent may be able to sell your home faster and for a higher price, it's important to choose an agent who understands your needs and works hard to achieve your goals.
Choose FastExpert for a Hassle-Free Experience
If you're looking to buy or sell a home, FastExpert is an excellent platform to connect with top-rated real estate agents in your area. Simply enter your city or zip code, browse agent profiles, and learn more about their expertise, recent sales, and client reviews. You can contact agents directly through the FastExpert website, and there's no fee to use the platform.
We are passionate about helping homebuyers and sellers find the right agent and have the best experience possible. Our team of experts is always ready to answer your questions and provide guidance. Try FastExpert today and find the perfect real estate agent for your needs!
Frequently Asked Questions
How Do Realtor Commissions Work?
In most cases, real estate commissions are paid by the seller of the property. It is typically a percentage of the final sale price and is divided between the buyer's agent and the seller's agent. For example, if a home is sold for $200,000 and the commission rate is 5%, the total commission would be $10,000, split evenly between the buyer's agent and the listing agent.
What Else Should You Know About Real Estate Commissions?
Here are a few additional things to keep in mind regarding real estate commissions:
- Commissions are typically paid out at closing, so you won't have to worry about paying the commission upfront.
- Even if you are selling your home yourself, you may still need to pay the buyer's agent their commission unless it's specified in the contract that the buyer is responsible.
- The buyer and seller may agree to split the commission in some cases. For instance, if the commission is 5%, and the parties agree to split it 50/50, the buyer would pay 2.5% and the seller would pay 2.5%.
- Some real estate agents may charge a higher commission for higher-priced properties or niche real estate transactions.
- You may be able to negotiate a lower commission if you use the same agent for both the purchase and sale of a property or if you're buying and selling multiple properties simultaneously.
