NASE Blog Posts

My realtor is charging a 6% to sell my house. That sounds like a lot of money. Does she get to keep all of that?

Monday, November 17, 2014
The most common answer to that question is no. In a typical residential transaction, the listing broker charges the full commission (in your case 6% of the sales price) which is split (usually 50-50 but not always) between the listing broker and what is known as the “procuring” (the broker who found the buyer) broker. Each broker then further divides the commission with the agents involved in the transaction, assuming they are different than the managing broker. Keep in mind that real estate agents mostly work as independent contractors underneath a sponsoring broker. This is very common among larger real estate companies. In going back to your original question though, your agent could be entitled to the entire 6% if she is a broker, does not practice under a separate sponsoring broker, and  she procured the buyer that purchased your home. In this case there is no other broker involved with which your listing agent must share the commission. Please remember both what a broker charges and how those commissions are shared varies greatly. Also be aware that broker representation laws and customs vary greatly by state and by market. Your best option is to be direct with your listing agent and ask her how the compensation will be split. You have a right to know.

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