Decoding the Commission Structure: How Sellers Pay Realtor Fees & the Ins and Outs of Realtor Commissions

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Selling a property is a significant decision that requires careful consideration, and most sellers choose to work with a realtor to make the process easier and more streamlined. When working with a realtor, it's important to understand how realtor fees and commissions are structured. 

Who Pays Realtor Fees? In most cases, sellers pay realtor fees as part of the sales process. The commission is typically a percentage of the sale price and is split between the buying and selling agents. The commission percentage can vary depending on the agreement between the seller and their realtor.

It's worth noting that the commission is usually paid by the seller, not the buyer, and that buyers don’t pay any agent feels when they hire an agent to help purchase a home. This means that the seller bears the cost of the realtor's services. However, the cost of a realtor is well worth it, as a realtor brings a wealth of experience and expertise to the table, helping the seller to negotiate a better price and closing the sale more quickly.

Typical Realtor Commission Structure The commission structure for realtors can vary depending on the agreement between the realtor and their brokerage. The most common structure is a fixed percentage commission. In this structure, the realtor agrees to charge a set percentage of the sale price for their services. This percentage can range from 5% to 7%, with the exact amount depending on the agreement between the realtor and the seller. That percentage is then divided between the buyer and seller agent.

There are other less common commission structures, like a sliding scale commission. In this structure, the commission percentage varies based on the sale price of the property. Some realtors may also offer a flat fee structure, in which the seller pays a fixed amount for the realtor's services, regardless of the sale price.

Understanding the commission structure and how realtor fees are paid can help sellers make informed decisions when choosing a realtor to work with. Whether you're a seller looking to sell a property or a realtor looking to understand the industry, understanding the commission structure is an essential aspect of real estate and takes the guesswork out of who pays what.

Kate Testa Sample
kate.sample@cbrealty.com
(412) 519-7433

Sasha Sample
sasha.sample@cbrealty.com
(330) 807-8384