May 23, 2024
What Is the Selling Agent Commission? Hauseit® NYC

Buyer Seller Commission for Real Estate

What is Buyer Seller Commission?

When it comes to buying or selling real estate, one of the key factors to consider is the commission that is involved in the transaction. The buyer seller commission refers to the fee that is paid to the real estate agents or brokers involved in the deal. It is usually a percentage of the total sale price and is typically split between the buyer’s agent and the seller’s agent.

The Role of Real Estate Agents

Real estate agents play a crucial role in the buying and selling process. They help buyers find suitable properties, negotiate deals, and guide sellers through the selling process. In return for their services, they receive a commission from the sale. The commission is their main source of income and is used to cover their expenses, such as marketing, advertising, and office costs.

How is the Commission Calculated?

The buyer seller commission is usually a percentage of the sale price. The exact percentage can vary depending on various factors, such as the location, type of property, and the agreement between the agent and the client. In most cases, the commission is split equally between the buyer’s agent and the seller’s agent, but this can also be negotiated.

Who Pays the Commission?

Traditionally, the seller pays the commission to both the buyer’s agent and the seller’s agent. This is because the commission is typically deducted from the proceeds of the sale. However, in some cases, the buyer may be responsible for paying a portion of the commission if it is agreed upon in the purchase agreement.

The Benefits of Hiring a Real Estate Agent

While the buyer seller commission may seem like an additional expense, hiring a real estate agent can actually be beneficial for both buyers and sellers. Real estate agents have extensive knowledge of the local market, access to a wider range of properties, and the negotiation skills to get the best deal for their clients. They also handle all the paperwork and legal aspects of the transaction, ensuring a smooth and hassle-free process.

Negotiating the Commission

Although the commission is typically a standard percentage, it is not set in stone. Buyers and sellers have the option to negotiate the commission rate with their agents. It is important to discuss and clarify the commission structure and any additional fees upfront to avoid any misunderstandings later on.

Alternatives to Traditional Real Estate Agents

In recent years, there has been an increase in alternative options to traditional real estate agents. Online platforms and services allow buyers and sellers to connect directly, eliminating the need for a middleman. While these options may offer lower commission rates, it is important to consider the level of expertise and support that a real estate agent provides.


The buyer seller commission is an essential aspect of the real estate buying and selling process. It is a fee paid to real estate agents for their services in helping buyers and sellers navigate the market and complete successful transactions. While the commission may vary, the expertise and support provided by real estate agents can prove invaluable in ensuring a smooth and successful real estate transaction.