What Commission Should I Pay to Sell My House?

Home Selling

What Commission Should I Pay to Sell My House?

October 14, 2018 | by Andrew Schmeerbauch

What Commission Should I Pay to Sell My House?

If you are about to put your home on the market to sell, there is likely one question on your mind, “What commission should I pay to sell my house?”

True, there are likely other questions on your mind as well. Like “How do I find a good Realtor?” or maybe “How much should I ask for my house?”

But neither of these really pressing questions can truly be answered until you answer the first one.

Before you hire a Realtor, before your price your house, before you really do anything in the property transfer process you have to decide: how much Realtor commission am I willing to pay?

Here’s how you can decide:

What Commission Should I Pay to Sell My House?

In this article, we will walk you through the average real estate agent commission in 2018. We’ll also discuss what you should expect to receive for that commission – and if you decide to pay less.

Stick around, because we will also introduce a marvelous alternative: flat fee Realtors.

Ready? Here we go:

What is the Average Realtor Commission in 2018?

As of 2018, the average amount of commission that sellers pay to their Realtors is between five and seven percent of the final sales price. For this instance, let’s call that six percent.

That means that if you sell your home for $200,000, your Realtor receives $12,000. However, the listing agent always has to share his commission with the agent who introduces the buyer into the deal.

The commission is usually split evenly. So in this example, if your Realtor earns $12,000 for the sale of your home, he gets to keep $6,000. That is, of course, if he does not have to pay any fees or commissions to his brokerage firm or home office.

When you think about all of the time and effort a Realtor puts into listing, marketing, and selling your home, a six percent commission rate could seem fair.

However, a commission is still a commission. The higher the selling price, the higher the Realtor’s cut, and the less money in your pocket.

What Level of Service Should I Expect from this Commission?

Realtors working on commission tend to be highly motivated to secure the highest selling price possible. This is because it means that they will be able to take home more money at the end of the day.

A Realtor working on a six percent commission should be a full-service Realtor. He should be available to answer your questions and reply to all of your queries and concerns promptly and professionally.

He should know the target demographic for your property and have a full marketing plan available for you to either look over or verbally confirm. He should market your home to multiple outlets.

Your six percent commission Realtor should have a strong online presence. This should include a website, social media accounts, and access to Multiple Listing Services. Known as an “MLS” in the industry, a Multiple Listing Service is a great way for your agent to get the word out about your property.

Essentially, if you are paying full commission to a Realtor, you should expect to feel completely at ease and receive top service. You should also expect your agent to push for the highest sales price possible, but be aware that as the price goes up, so does his commission.

What Happens if I Pay Less than Average Commission?

If you pay less than average commission, you can usually expect less than average service. This is because 1 percent of $1,000,000 is only $10,000. A Realtor working on a sale for such a small amount of compensation typically will not push as hard a full commission agent.

You might be able to pocket more cash from a lower commission agent. However, it might come at the expense of his service. While the boxes will still be ticked off and you can expect an ethical and legal transfer of property, you just won’t get the same kind of support.

What Are My Alternatives?

Flat fee real estate agents are the happy medium. They offer high commission services at low commission costs. This means that you can have the support and expertise of a six percent commission agent and still take home great money at the end of the day.

With an agency like Clever, you only pay $3,000 to sell your home. There is a one percent fee on homes sold over $350,000.

So, let’s use the example of the $200,000 home from earlier. If you sold it with a traditional Realtor, you would pay $12,000 in commission fees. But if you list it with Clever? You pay $3,000.

That’s $9,000 in savings just from your selection of Realtor.

When you pick a flat fee Realtor, he still pushes for the best price and gives you the best service. The only difference is that you walk away with more money.

Are you ready to start saving on commission? We can’t help to help you do it! List with Clever to experience full-service real estate service at less than half the price. Call us today at   1-833-2-CLEVER or fill out our online form to get started.


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