In an era of home-selling apps and online services, it might seem that real estate

commissions are on their way out. After all, these fees can take a big chunk out of

the sale price of a property. But the truth is, real estate agents provide valuable

services that make their 6% cut well worth it. This includes everything from

scheduling property showings and marketing to negotiating with buyers and closing

the deal.

Despite all the naysayers who predicted the death of stockbrokerage commissions

and travel agency fees, real estate commissions have proven stubbornly resilient. In

fact, they continue to grow even as more and more consumers turn to online

resources to help them sell their homes. For more

The 6% standard real estate commission rate has been around for decades. In fact,

it was first written about in 1913 when it appeared in the first code of ethics for the

National Association of Realtors (NAR). In addition to the listing fee paid to a broker

by a seller, there is also a buyer’s agent commission to be shared with the agent

who brings the buyer.

These fees can amount to tens of thousands of dollars and are a cost that is passed

on to the buyers of a property. While many people are aware that these fees are a

part of buying or selling a home, few know exactly how much they are or what they



Real estate agents’ commission rates are usually negotiable, but they can vary by

state and region as well as between brokers. However, they can typically be reduced

in certain circumstances, such as when a seller is rushing to sell their property or

when they are offering a discount to attract potential buyers.

While the average national real estate commission rate is 5.37%, it can differ widely

from city to city. This is because different regions and markets have unique factors

that impact the housing market. In general, lower commission rates are common

during slow economic periods while higher commission rates are more typical in

high-demand areas.


Another factor that influences commission rates is how much the market is moving.

For example, a housing boom will often lead to lower commission rates while a

recession may see them increase.

Changes are afoot, but it is still unclear how the new rules will impact the industry

and what effect they’ll have on homebuyers and sellers. The NAR is currently

appealing a $1.8 billion judgment from a federal court in October that found that the

standard 6% commission is unfair. If the ruling stands, it could alter how the fee

structure is determined and who pays for it, a move that would save homebuyers

$20 billion to $30 billion each year, according to the Consumer Federation of

America. In the meantime, consumers should be aware of how these changes might

affect them before they sign a real estate contract. If they have any questions, they

should always contact a qualified real estate professional for advice.