The average real estate commission when you hire a REALTOR to sell your home, also called a “broker fee,” is typically 6%-7%. Usually the fee is calculated at either a percentage on the full amount of the sale, or 6%-7% on the first $100,000 of the sale price, and then a lower percentage on the remainder of the sale price.
For example, if you sell your home for $300,000, your broker fee will either be $18,000 (if a flat 6%), or $6,000 on the first $100,000 of the sale price (or 6%) and then $8,000 on the other $200,000 (or 4%), for a total fee of $14,000.
When inventory is low, real estate agents may negotiate a reduced commission in order to under bid other agents and win the listing. However, this could backfire for the homeowner.
Watch this video to learn where your money is going when you list your home with a REALTOR, and why using a discount agent is not in your best interest.
LISA TIMKO | Cleveland REALTOR | Columbus REALTOR | KELLER WILLIAMS 