Under the traditional real estate model, the listing and the selling Realtor’s split a commission ranging from 6% to 7% of the price of the home or commercial property. Additionally, some of the major realty companies that I’ve worked for have also charged a transaction fee of $500 on top of the regular commission fees. For an example if you take a $500k home or commercial building and calculate the commission, $500k X 6% = $30,000 plus the transaction fee = $30,500 – this would be your total commission.

Considering that real estate commissions totaled around 50 billion last year, it’s essential to understand how commissions impact your bottom line.  So, this is how real estate commission is figured. Since the commission comes out of the sale, assuming you have no mortgage and your house sold for $500k, you would receive $469,500 instead of the full $500k. If you have a mortgage this would also be deducted.

Realtors have access to crucial tools like the Multiple Listing Service. The M.L.S. is the top producer in getting your home or commercial property sold. Newspaper ads, open houses and fliers do not compare to the M.L.S. According to the National Association of Realtors, 87% of all real estate is sold through the M.L.S.

Real estate commissions are negotiable. Yet major realty companies tend to stick to the standard 6% fee.  When you inquire about discounts, they dismiss it claiming, “You get what you pay for” However. we offer full-service realty with no upfront charges and no hidden fees + numerous 5-star ratings and Steller reviews.