What is the average commission on a home purchase?
A. The average commission is about five percent, although six percent commissions are still common. Q. Who pays the commission? A. The seller. It is paid out of funds received from the sale of the home. Q. Does the commission go entirely to the seller’s real estate agent? A. No. The broker whose firm lists the house sets the commission. The listing broker then offers part of the commission-often 50 percent-to the broker whose firm represents the buyer. Both brokers then share their portion of commission with the agents who work with the seller and buyer. The agents’ share may be as little as 50 percent or as much as 100 percent, depending on their arrangement with the broker. If either brokerage is part of a franchise, it may also pay part of the commission as a franchise fee. Q. Is it possible to negotiate the real estate commission? A. Yes. An agent may be willing to negotiate his or her commission in order to get your business. This is especially true if the agent is independent and
