How Much Is Real Estate Commission? A Complete Guide for Buyers and Sellers

Introduction The most common question that occurs in the minds of many when buying or selling real estate is, "How much is the commission on real estate?" Understanding real estate commission is crucial, considering it can make a big financial difference for either buyer or seller. This guide will attempt to explain real estate commissions, how they work, and provide actionable tips in helping you through this mysterious part of real estate sales. Picture owning a stunning waterfront property or securing a cozy family home in the perfect neighborhood. What is Real Estate Commission? Real estate commission refers to the amount paid to realtors as compensation for their services in facilitating buyers and sellers in closing property transactions. This is usually a percentage of the sale price of the property and is normally paid by the seller at the time of closing. The commission is then shared between the listing agent, or seller's agent, and the buyer's agent. Why ...