Who pays for realtor commission?

Each party, the buyer and seller, is contractually responsible for paying their own agent commission . However, it's common practice for sellers to cover both their own agent's fee and that of the buyer's agent. This arrangement helps buyers, as they don't have to factor agent costs into their expenses when they're already saving for their down payment.

Is commission included in closing costs?

Although real estate agent commissions are due when the transaction completes, they aren't categorized as closing costs. Instead, closing costs specifically refers to the various fees and charges collected at settlement, such as property transfer taxes, title insurance, and administrative expenses.

Dual agency is when a single agent represents both the buyer and the seller for the same real estate deal. This can lead to a conflict of interest. Dual agency is illegal in eight states: Alaska, Colorado, Florida, Kansas, Oklahoma, Texas, Vermont, and Wyoming.

What is an exclusive right to sell agreement?

The most common type of agent contract is known as an exclusive right to sell listing agreement. This contract states the seller agrees to work with only one agent, who gets paid when the home sells, even if the agent doesn't bring in the buyer.

Geo

Average Realtor Commission in California: Updated for 2025
According to an April 2025 survey of local real estate agents, the average real estate commission in California is 5.18%, which is less than the national average of 5.44%.
Average Realtor Commission in Arkansas: Updated for 2025
According to an April 2025 survey of local real estate agents, the average real estate commission in Arkansas is 5.41%, which is less than the national average of 5.44%.
Average Realtor Commission in Arizona: Updated for 2025
According to an April 2025 survey of local real estate agents, the average real estate commission in Arizona is 5.44%, which is about equal to the national average of 5.44%.
Average Realtor Commission in Alaska: Updated for 2025
According to an April 2025 survey of local real estate agents, the average real estate commission in Alaska is 5.22%, which is less than the national average of 5.44%.
Average Real Estate Commission in Alabama: 2025 Update
According to an April 2025 survey of local real estate agents, the average real estate commission in Alabama is 5.68%, which is higher than the national average of 5.44%.