Real estate fees are typically divided between the buyer’s broker/agent and the seller’s broker/agent* in a manner that is agreed upon in advance and specified in their listing agreement. The fee structure is often represented as a percentage of the final sale price of the home, with the total fee being paid by the seller at closing.
In a typical real estate transaction, the total fee is usually 6% of the sale price, with each agent receiving a percentage of that fee. For example, if the total fee is 6%, the listing agent and buyer’s agent each receive 3%. The listing agent would receive $15,000 on a $500,000 sale, and the buyer’s agent would receive the same amount.
However, the specific fee structure and percentage split can vary depending on several factors, such as the location of the property, the type of property being sold, and the current market conditions. In some cases, the seller may negotiate a lower fee or a flat fee with the listing agent, or the buyer’s agent may agree to accept a lower percentage in order to secure the transaction.
It's important to note that the fee structure and percentage split can also vary depending on the type of real estate transaction. For example, in some cases, a real estate agent may represent both the buyer and seller in a transaction, in which case they may receive a higher percentage of the fee.
Ultimately, the specific division of real estate fees between the buyer’s agent and the seller’s agent is negotiable and can vary depending on several factors. It’s important for buyers and sellers to carefully review and understand the fee structure and percentage split before entering into a real estate transaction.
Ask us about how to lower your closing costs by listing your property for a flat fee.
Written by: Texas Roadrunner Realty with ChatGPT
*This post will refer to the ‘broker/agent’ as simply ‘agent’ for the majority of the article. Disclosure: all real estate fees are paid directly to the agent’s broker.
