Understanding Commissions: What Sellers Should Really Know

1. The Myth of the “Standard” Commission

Many sellers assume that real estate commissions are fixed, but that’s simply not true. Commissions are fully negotiable, and the amount you pay can vary based on the agent, property type, and market conditions. Knowing this puts you in control of your home sale.

Key facts about commissions:

• There is no law or rule that sets a standard commission rate.
• Rates typically range from 4%–6%, but every agent can offer different terms.
• You have the right to compare and negotiate before signing a listing agreement.

2. What a Commission Actually Covers

A commission isn’t just an agent’s paycheck—it compensates for marketing, negotiation, and coordination of your sale. However, the value you receive should match the rate you’re paying. By comparing multiple agents, you can see exactly what services you’re getting for the cost.

Typical commission services include:

• Professional photography and listing on major real estate platforms.
• Scheduling showings, open houses, and buyer communication.
• Negotiating offers and handling contracts through closing.

3. How Commission Splits Work

In most cases, the commission is split between the seller’s agent and the buyer’s agent. For example, on a 5% total commission, 2.5% typically goes to each side. However, these splits are flexible—and understanding them can help you negotiate smarter.

Common commission split scenarios:

• 5% total: 2.5% to listing agent, 2.5% to buyer’s agent.
• 4.5% total: 2.5% to listing agent, 2% to buyer’s agent.
• 4% total: competitive agents may offer reduced rates while maintaining quality marketing.

4. Why Comparing Multiple Agents Matters

Every agent brings a different combination of experience, strategy, and pricing. When you invite several to compete for your listing, they know they must present their most attractive offer. This creates transparency—and often results in lower commissions without sacrificing service.

Benefits of comparing multiple agents:

• Gain insight into local pricing and marketing approaches.
• See clear differences in commission rates and contract terms.
• Build confidence that you’re hiring the best agent for your needs.

5. How Lower Commissions Can Still Deliver Top Results

Some sellers worry that a lower commission means less effort from their agent, but competition ensures the opposite. Motivated agents who want your listing are more likely to offer fair terms while still delivering exceptional service.

Here’s why competition works:

• Agents sharpen their strategies to win your business.
• You’ll often find similar services for a better rate.
• You remain in full control of who you hire and why.

6. Using Seeking Agents® to Compare Commissions

Through Seeking Agents®, you can review proposals from multiple licensed agents in your area—all without any obligation. Each agent provides details on their experience, strategy, and commission rate so you can make an informed choice before listing your home.

Why it’s a smarter way to sell:

• Agents compete for your business, saving you thousands in commissions.
• You review offers in one place and choose your preferred agent.
• It’s 100% free for sellers and provides complete transparency.

Conclusion

Commissions aren’t one-size-fits-all, and sellers who compare offers often save thousands. By letting agents compete, you create leverage, transparency, and confidence in your final decision. Protect your equity by understanding your options before you sign.

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