Thread: Real Estate Commissions?

There is no set amount and to imply that there is could be said to be a violation of the law in my area. I would suggest researching the Sherman Anti trust laws regarding real estate in the US. No legal advice given.

Thanks MarkBrian,

I'll look into that that law.

I know that in our area some realtors will set their own rate, and while it may not be accurate to say that it's "the commission" for our area, the vast majority seem to work at 6-7% on the first $100,000 and then 3.5% there after, with the commission being split between realtors.

I'm wondering if other areas have a "popular" commission range?

In Philadelphia, Pa. the commission is between 6 and 7%. On a multiple listing, the commission is usually split. But watch out for the transfer tax in the area you choose to sell. In Philadelphia, the tax is $2500.00 on a $125,000 sale. I do not know if this applys to buyers.
As far as I am concerned, this is a ripoff. How much work does someone do to put tax stamps on your deed. The realtor earns his/her commission.

there is not fix rate for commission . . . standard rate is 6%,3% for listing agent, 3% for selling agent . . ..

The listing agent and seller set the commission price. Usually 6-7% of the total purchase price.

They can then say "2.5% goes to the buyers agent" or "3.3% goes to the buyers agent"

It's really up to them. That's why listings are awesome because you can set the price you are paid. Buyers agents just have to take what they are given, unless they negotiate a minimum commission amount to be paid by the buyers (which is common in low price points).

The norm in my area is 6%, with a few going as high as 8% (which would require an extremely aggressive marketing plan for that property). And for high-end real estate (over 1M), it's not uncommon for 5% to be the commission rate.

I apologize for a stupid question, but what if say I am both listing and selling agent? Do I get charged with both taxes??

Originally Posted by Partizannka

I apologize for a stupid question, but what if say I am both listing and selling agent? Do I get charged with both taxes??

There are no stupid questions

If I'm reading your post correctly, in general we've been discussing realtor commissions (the money that realtors make on sales). In some regions there are land transfer taxes, but those are only paid once.

I'm pretty sure that every region has some sort of closing costs that need to be paid by either the seller or the buyer. Who typically pays those costs is something that seems to be fairly standard within each region, but is also something that can often be negotiated, to improve the deal a little

Thank you, well I presupposed the answer... still was a bit hesitant