What is the real estate commission rate?

The real estate commission, generally paid by the seller, varies by market. It’s a negotiable item and ranges anywhere from 4%-7%. Typically, the real commission is split between the broker for the buyer and the broker for the seller. That does not mean that your agent gets the entire half. The actual brokerage company takes the commission, and the agents get a split off that, depending on how much business they have brought in for the past year or year to date. Buyers should never pay the commission in a real estate transaction.  When selling “For Sale By Owner”, a seller should consider paying 2% or more to any buyer’s agent.