The Truth About Real Estate Commissions

When it comes to buying or selling a home, one of the most common questions people ask is:“What exactly am I paying my real estate agent for?”Let’s break it down and uncover what real estate commissions really cover—and why it’s more than just a price tag.

What Is a Real Estate Commission?

A real estate commission is a fee paid to agents for their services in helping you buy or sell a property. In most cases, this fee is around 5%–6% of the home’s sale price, and it's usually split between the buyer’s agent and the seller’s agent.

Example: If you sell a $400,000 home with a 6% commission, that’s $24,000—split between both agents, and then further split between their brokerages.

What Are You Really Paying For?

Here’s what that commission typically includes:

• Pricing strategy & market analysis

• Home staging and prep advice

• Professional photography and marketing

• MLS listing exposure & online syndication

• Open houses and private showings

• Negotiation with buyers or sellers

• Managing inspections, appraisals & closing

• Legal compliance and paperwork accuracy

• Peace of mind — from start to sold

Can You Negotiate Commissions?

Yes, commissions are not set by law and are negotiable. However, lower fees may mean fewer services or less marketing exposure. A lower commission might save you upfront, but could cost you more in the final sale price or time on market.

Commission vs. Value

Instead of asking “What’s the cheapest commission?”, the better question is:“Who can get me the best results?”

A skilled agent doesn't just list your home—they position it for success. And in real estate, a strong negotiator can make or save you tens of thousands of dollars, often far outweighing the commission itself.

The Bottom Line

Real estate commissions may seem like a big number—but behind that fee is a ton of expertise, strategy, and hard work that helps you reach your real estate goals. Don’t just pay for a service—invest in a partner who helps you win.