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The exact terms of an agent’s commission vary from sale to sale, and can depend on the region and which firm they work for. Let’s look at an example. A 5 percent commission on a $250,000 home ...
The typical agent commission is between 2.5 and 3 percent of a home’s sale price, but discount agents can charge as little as 1.5 or even 1 percent. ... On a $300,000 sale, the average 2.74 ...
In the 1920s in the Boston area, for example, the typical commission rate was 2.5%, but by the 1940s it had reached 5%, according to a study published in November 2015.
A real estate broker typically receives a real estate commission for successfully completing a sale. Across the U.S, this commission can generally range between 5-6% of the property's sale price for a full-service broker but this percentage varies by state and even region. [2]
A commission structure can apply to employees or independent contractors. Industries where commissions are common include car sales, property sales, insurance booking, and most sales jobs. In the United States, a real estate broker who successfully sells a property might collect a commission of 6% of the sale price. [7]
Subdivision laws enforced by the Department help ensure that subdividers deliver to buyers what was agreed to at the time of sale. Before subdivided real property can be marketed in California, subdividers must obtain a public report from the Department disclosing to prospective buyers pertinent information about a particular subdivision. [8]
Under the longtime standard, if a homeowner sold a property for $400,000, about average for existing homes in the United States, the seller paid a commission of around 5 percent, amounting to $20,000.
The commission that the agent receives is usually a percentage of this figure, although some firms like Merrill Lynch use figures called Production Credits, usually smaller than GDC, to determine payouts and retain more revenue. For example, a mutual fund with a 5.75% sales charge is sold to someone who invests $10,000.