How commission works | Getting low rates | Low commission companies | Methodology
📊 The data: We polled local agents and found that the average real estate commission in Pennsylvania is 5.26%, which is less than the national average of 5.45%. |
For a house sold for $208,774, this rate translates to $10,982 in real estate agent commission costs.
Realtor commission is usually the largest cost that home sellers face, but the upside is that it also represents the biggest potential for savings.
» MORE: Learn how Clever can help you save on commission.
Below, we cover everything you need to know commission costs in Pennsylvania and also give you tips for getting low rates.
How real estate agent commission works in Pennsylvania
There are two real estate agents involved in a typical home sale:
- The seller's agent (also called the listing agent), representing the home seller
- The buyer's agent, who represents the person buying the home
The seller's and buyer's agent get paid a percentage of the home's final price when the sale is finalized. This payment is called real estate agent commission, and is baked into the sale price of a home and split between the two agents.
» LEARN: More about how real estate commissions work.
Based on our research, the average commission split in Pennsylvania has 53.07% of the commission going to the listing agent and 46.93% going to the buyer's agent.
Who pays for real estate commissions?
Home sellers are responsible for paying the real estate commission of both the agent representing them, as well as the agent representing whoever buys their home.
However, since the realtor commission is baked into the sales price you could say that the home buyer is paying — at least in-part — through a higher sales price.
» MORE: Who pays realtor commission.
How to save on real estate commission in Pennsylvania
💰Best ways to save While there are a number of options for home sellers looking to save on commission, good options for most home sellers include:
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» MORE: Options for saving on realtor commission
If you’re looking for a lower-than-average commission rate in Pennsylvania, now might be a good time to try negotiating.
Agents in PA are benefiting from a seller’s market because they can sell more houses without having to work as hard to find buyers, so some flexibility in your agents usual commission rate might be possible.
Below we cover how you can negotiate lower rates, and list some of our recommendations of low commission real estate companies that you should consider.
Tips for negotiating realtor commission in Pennsylvania
Successfully negotiating commission rates depends mainly on two factors: your situation and the housing market.
Factor | You may have an easier time negotiating low rates if... |
|---|---|
Your situation |
|
The Pennsylvania housing market |
|
» LEARN: How you can negotiate lower commission rates.
While the personal factors that affect your ability to negotiate commission rates are unique to you, the local real estate market conditions will affect all home sellers in Pennsylvania.
In a seller's market — where home sellers have more leverage than buyers — a listing agent's job is easier and they may be more inclined to offer lower commission rates. The opposite is true in a buyer's market.
📖Definitions Months of inventory, is measured by dividing the homes listed for sale in the most recent month by the number of homes actually sold in that month. It is a key indicator of how much supply and demand there is for houses in a market. Sale-to-list is calculated by dividing the median sale price by the median listing price in a given area. If homes in your area are generally selling for more than their listing price, that is a good indication that you are in a seller's market. Home values rising in your area indicate that demand is growing. Whereas if this figure is falling, then it's more likely that homes in your area are becoming less desirable. |
To judge the current state of the real estate market, you can look at three factors: months of inventory, sale to list price, and home value trends. Below, we've included a current breakdown of these factors in Pennsylvania.
Stats and facts: The current state of the Pennsylvania real estate market
Factor | Trends | Indication |
|---|---|---|
Months of inventory | There's 1.7 months of housing inventory on the market | Seller's market |
Sale-to-list price | Homes are selling for 98.80% of their listing price | Seller's market |
Home value | Home values have risen/fallen 5.83% year over year | Seller's market |
Low commission real estate companies in Pennsylvania
Home sellers looking to save money when selling their home should consider a low commission real estate company. To help you out, Clever has picked some of the top discount and flat-fee MLS services across the state:
Discount real estate brokers in Pennsylvania
Discount real estate brokers are companies that will list your home for a reduced commission percentage or flat rate. The catch is that the service might not be on-par with what you'd get from a top local agent.
Clever
Clever Real EstateListing Fee
1% (minimum $3,000)
Clever Cash Back
0.5% on homes over $150,000
Avg. Customer Rating
4.8/5 (386 reviews)
- Clever Real Estate is a nationwide, online concierge and agent matching service for sellers and buyers — learn more
- Buyers and sellers are matched with multiple highly rated agents from major brands, such as Keller Williams, Century 21, Compass, RE/MAX, and more
- Sellers choose a full-service agent and pay a flat, $3,000 fee — or just 1% for homes more than $350,000
- Buyers may be eligible for 0.5% back after closing (in qualifying locations)
Clever has pre-negotiated lower commission rates with top agents in all 50 states, D.C., and Puerto Rico
Pros
| Cons
|
As of May 20, 2020, Clever's average customer rating is 4.8/5 based on 386 reviews on Trustpilot.
- Trustpilot: 4.8/5 (379 reviews)
- BBB: An A rating
Houwzer Real Estate
Houwzer Real EstateListing Fee
$5,000
Buyer Rebate
N/A
Avg. Customer Rating
4.9/5 (897 reviews)
- Houwzer is a real estate brokerage operating in select markets in and around Philadelphia, South Jersey, Washington, D.C., and Baltimore.
- If you're selling, get full service and support from Houwzer's in-house team of agents for a flat $5,000 listing fee.
- You should also expect to pay a buyer's agent commission. Rates vary, but 2.5-3% is typical nationwide.
- If you buy and sell with Houwzer, the $5,000 listing fee is cut in half.
- Buyers get full service and support; however, unlike some other discount services, Houwzer doesn't offer built-in commission rebates.
- Houwzer also offers mortgage broker services in Philadelphia and South Jersey.
- Houwzer agents don't work on commission — they're salaried, which could have negative implications for sellers.
Philadelphia*
| City of Philadelphia | Delaware County |
| Bucks County | Montgomery County |
| Chester County |
South Jersey*
| Burlington County (most) | Gloucester County (parts) |
| Camden County (most) |
Washington, D.C. / Virginia
| Arlington | Loudoun |
| Alexandria | Manassas |
| Fairfax | Manassas Park |
| Fairfax City | Montgomery |
| Falls Church | Prince William |
Baltimore
| City of Baltimore | Anne Arundel |
| Howard |
*Mortgage services available
Pros
| Cons
|
As of May 20, 2020, Houwzer has an average rating of 4.9/5 across Zillow, Google, and Facebook. See the breakdown below.
- Zillow: 4.9/5 (535 reviews)
- Google*: 4.8/5 (184 reviews)
- Facebook: 4.8/5 (167 reviews)
- Yelp*: 3.5/5 (11 reviews)
*These reviews are for Houwzer's main Philadelphia, PA office. If you're looking to sell or buy in one of Houwzer's other markets, we recommend conducting research and finding reviews specific to your location.
Prevu Real Estate
Prevu Real EstateListing Fee
1.5%
Buyer Rebate
Up to 2%
Avg. Customer Rating
4.9/5 (53 reviews)
- Prevu is a real estate broker offering commission savings in New York City, Philadelphia, and Fairfield County, CT
- If you're selling, get full service for a reduced 1.5% listing fee, vs the 2.5-3% rate typically charged by traditional, full-service agents
- Expect to pay a buyer's agent commission as well — rates vary, but 2.5-3% is typical nationwide
- Prevu agents don't work on commission, they're salaried. This has some implications buyers and sellers should be aware of
- Qualifying buyers can get a commission rebate of up to 2% back at closing
New York
| Bronx | Manhattan | Staten Island |
| Brooklyn | Queens |
Connecticut
| Fairfield County |
Pennsylvania
| Philadelphia |
Pros
| Cons
|
As of May 20, 2020, Prevu's average customer rating is 4.9/5 based on 53 reviews across Google and Yelp. See the breakdown below.
» MORE: About discount real estate brokers.
Flat-fee MLS listing services Pennsylvania
Flat-fee MLS listing services offer to post your home on your local MLS for a low rate often around $100-300. The trade-off is that you'll have to handle almost the entire home-selling process yourself. If you're a real estate novice, this might not be a good option for you.
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Flat Fee Group
Flat Fee GroupPrice Range
$399-1,999
Number of Photos
25-50
Listing Term
12 months up to until sold
- Flat Fee Group is a national network of independent brokers that offer flat-fee MLS services in Pennsylvania
- Pay no buyer’s agent commission if you find an unrepresented buyer
- Buyer and agent inquiries forwarded to you
- Contracts, disclosures, and addendums included
$399 - Premium
| $699 - Contract Review
|
Pros
- Work directly with the broker, not a referral service
- Buyer inquiries forwarded directly to you
- Pay no commission if you find an unrepresented buyer
Cons
- No home valuation included (except Full Service package)
As of August 10, 2020, Christopher Carr, the Pennsylvania Flat Fee Group broker, has a 5-out-of-5-star rating on Zillow (24 reviews).
» MORE: About flat-fee MLS services.
Methodology
Data on commission rates is based on a survey of 554 of our partner agents, in which we asked them to indicate the typical rates for both buyer's and seller's agents in their area. Due to data limitations, Pennsylvania commission figures were inferred from regional averages.
Additionally, we utilized the following data from Zillow and Realtor.com:
- Home values, list prices, and sale prices: Based on Zillow data as of September, 2020
- Sale prices and sale-to-list ratios: Based on Redfin data as of September, 2020 (unless specified otherwise)
- Months of inventory: Based on Realtor.com data as of September, 2020