Berkshire Hathaway is one of the biggest real estate brokerages in the United States, and their agents are known for facilitating the sales of luxury and high-end property. Here are your questions about their typical commission cost and what sellers should expect when working with the brokerage.
Berkshire Hathaway HomeServices is part of the international conglomerate Berkshire Hathaway and is renowned for selling high-end real estate. It is one of the largest real estate brokerages in the U.S. and employs over 45,000 real estate agents.
While Berkshire Hathaway agents may be synonymous with luxury property, they sell all levels of real estate, as well as commercial property too.
If you're considering selling your home and are currently exploring brokerage options, Berkshire Hathaway could be a good choice for you.
But selling your home is a significant financial decision, and it's essential to be aware of all the available options. You can list with a local, top-rated agent who’s the same caliber as a Berkshire Hathaway agent while saving thousands on commissions.
Get in touch to learn more about how can find the best agent for you.
In this guide, we're discussing Berkshire Hathaway sales commissions and how much you can expect to pay as a seller.
What is a real estate commission?
A real estate commission is the fee a real estate agent charges for facilitating the purchase or sale of a property. This is typically charged as a percentage of the homes total sales price and, in addition to compensating the agent, helps pay for the costs incurred when selling the home.
A full-service real estate agent’s duties usually include listing your home on the Multiple Listing Service, organizing professional photography of your home, hosting open houses, marketing your home in print and online, negotiating with buyers, and preparing sales contracts.
The typical real estate commission in the U.S. is around 5% to 6%. Real estate commissions are typically split equally between the listing agent and the buyer's agent at closing; however this can vary, and is outlined in the listing agreement.
How much do Berkshire Hathaway agents charge in commission?
Berkshire Hathaway is a full-service, traditional brokerage, and although commissions are always negotiable, assume their agents’ starting point is around 5% to 6% of the total sales price of a home, as this is the average in the U.S.
However, commissions can vary drastically, even between agents at the same brokerage. Newer agents are more likely to charge a lower commission as they build up their sales volume. In contrast, more experienced agents are likely to charge a higher commission.
What is a commission split?
A commission split is the amount of money a real estate agent agrees to pay their brokerage. Commission splits vary significantly, depending on the brokerage and the services they provide the agent.
For example, a brokerage that provides an office space, printing, and mentoring opportunities will likely have a higher commission split than a remote office with no amenities.
If an agent is provided leads through their brokerage the commission split is also usually much higher.
Seasoned agents who gross high sales volumes have a more favourable commission split than new agents who have a low sales volume, or who need more guidance from the brokerage.
Berkshire Hathaway’s Commission Split
Berkshire Hathaway does not advertise what their typical commission split is, however anecdotal data from agents’ online reviews state that most agents start on a split that earns them 60% of their commission, and the remaining 40% goes to Berkshire Hathaway HomeServices.
Each agent has the ability to improve their commission split as their sales volume increases.
How can you save on real estate commission?
Negotiating with Your Agent
Negotiating with your real estate agent is the best way to save on real estate commission. Most realtors are open to negotiation, however be sure to confirm exactly what services will be included for the negotiated fee.
For example, if your agent agrees to reduce their commission substantially, it’s unlikely they will still provide all of the original services, unless explicitly stated.
It is also important to note that most traditional, full-service real estate agents will not reduce their commission by more than 1%, unless they are new to real estate, or have a personal relationship with you.
Avoid negotiating lower commissions with realtors.
Clever has pre-negotiated commissions to save you money on your behalf.
Flat-Fee Discount Agents
If the thought of negotiating with a professional negotiator fills you with dread, don’t worry, there’s an alternative. Flat-fee discount realtors are real estate agents who assist homeowners in selling their home for a one-off flat fee. Often this flat fee is much lower than the 6% a traditional agent would charge.
The level of service flat-fee realtors offer varies, so it is crucial that you opt for one that provides all of the support you need.
Clever Real Estate partners with top realtors across the company; in exchange for a steady stream of business, the agents provide all of their services and expertise for a reduced commission.
These agents have at least five years of experience and receive glowing reviews from their clients, making them some of the best realtors in your area. And for a low flat-fee of $3000 for homes up to $350,000, or 1% for homes over $350,000, they’ll sell your home.
Connect with Clever to learn more about everything a Partner Agent can do for you while saving you money.
FAQs About Berkshire Hathaway Commission
Do Berkshire Hathaway agents make a base salary?
Berkshire Hathaway agents do not make a base salary. Like the majority of real estate brokerages, Berkshire Hathaway employs agents as independent contractors. As independent contractors, real estate agents earn their income from the commission of each real estate transaction they close.
Can you negotiate with Berkshire Hathaway agents?
Most real estate agents are open to negotiating their commission, however the extent they are willing to discount is highly dependent on the individual agent.
If you plan to negotiate commission with your realtor, it is crucial that you do so before you sign your listing agreement. The listing agreement states the specifics of your contract with the brokerage, including the amount the real estate agents with earn.
Once you sign a listing agreement, you’re locked into a commission rate with the agent.