Last Updated on April 29, 2024

Is There a Standard Commission Charged By Real Estate Agents? | Real Estate Question

By Alan F Macdonald

Short answer


Long answer

To find out what a real estate agent charges, you must talk to them directly.

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There is no standard commission rate charged by real estate agents or REALTORS®. Commissions may be flat rates or percentages, but there is no standard.

Often, different provinces and states have different real estate markets and so the selling prices of the houses are different, too. Each market is different in how long it takes to sell a property and so the commission can depend on how much work it will be to sell the house or condominium. Also, some real estate agents may pay higher fees to brokerages, or advertise more and build those extra costs into what they charge. The bottom line is that the market determines the commission that someone charges for anything. Some people will charge less than others and some people will charge more.

Often fees are charged on the sale of a home after the transaction is complete, though. That is, if the house or condominium doesn’t sell, there is no cost to the seller. However, there are some fees that may be charged before a house is sold – perhaps a flat rate to list a home for instance. In this scenario, a house may not sell, but the seller has already paid for a service and so the money is gone, and the seller still hasn’t sold their home.

To find out what an individual real estate agent charges, you must talk to them and explain your situation and they can tell you what they might charge, but they cannot speak for anyone else.

It is anti-competitive to say that there is a standard commission. In a free market, competition is key to a smoothly functioning  economy.

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