In this short informational video, Renee Hahn of Downing Fry Realty explains how real‑estate commissions are determined and who actually pays them. She describes the typical 6 % commission agreed upon in a listing agreement, how that amount is usually split 50/50 between the listing agent and the buyer’s agent, and what happens if the listing agent also brings the buyer (the full 6 % goes to that agent). Hahn emphasizes that the seller is responsible for the commission regardless of whether the buyer has representation. For buyers, there is effectively no cost for having an agent; the seller’s commission covers the buyer’s agent’s fee. The only possible expense for a buyer is a small broker transaction fee, usually $200–$300. She concludes by encouraging buyers to use representation and offers her contact information for further assistance.
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Hello, Renee Hahn with Downing Fry Realty, and this is Ask Renee, where I tackle some of the most common real estate questions that you may have. Today what we're going to talk about is how much is a realtor going to cost me if I work with one, and the answer is it depends. Now what do I mean by that? It depends on whether you are the buyer or or the seller. Let's talk about it starting on the selling side. When somebody wants to list and market and sell their property through a real estate brokerage, at the onset of signing that listing agreement between the broker and the homeowner, the commission rate is established. And by that I mean, just as an example, that homeowner and the broker may agree that they're going to pay a 6% commission rate to sell their home. Now, who gets that commission rate? It depends on where the buyer comes from. So the listing agent is always going to get about half of that commission, and I say about because again, that gets established in the process, that listing agreement process as well. But for this example, we'll assume assume it's a 50/50 split, meaning the listing agent, for all their work to market and sell and negotiate the sale of your home, would get half of that 6%. The other 3% may be tagged for when the buyer's agent brings a buyer. Now, that could be paid to the listing agent if the listing agent happens to bring a buyer, in which case they would get the full percent. 6%, excuse me, or it could be paid to a separate agent that brings in a buyer. So one of the things that often comes up on this is, well gosh, so if I'm a buyer, I understand I'm not paying the commission directly to the agent supporting me, but if I didn't have an agent, could I get a better deal on the house? And again, what I want to remind you is that commission rate gets set set before you ever show up on the scene as a buyer. And so the homeowner has already committed to paying 6% commission rate on that home regardless of whether the buyer has a buyer's agent representing them or not. Again, if the buyer does not have an agent representing them, the full 6% just gets, um, paid out to the listing agent. But because the commission rate was established at the point of agreement to list the home, that homeowner has to pay that 6% regardless of whether you bring an agent or not. So because of that, I always encourage the buyers I meet, whether they come and work with me or a different realtor of their choice, it is so important to have someone representing you. And truly, as a buyer, it doesn't cost you anything. It's not going to affect the agreement contract price you get on a home because the seller is already obligated to pay that set commission rate regardless of whether you bring an agent or not. So what does a real estate agent cost you, to come back to the question? It costs the seller whatever they've agreed to pay in commission, and it costs the buyer nothing other than if there's a broker transaction fee, which tends to be pretty nominal, usually in the $200 to $300 range. I hope that answers your question, and if I can be of any assistance in any of your real estate needs, whether you are considering buying or selling property, please don't hesitate to reach out to me. Again, Brené Han, Downing Frye Real Estate, 239-287-2576. Have a fantastic day.
