Commission Fees for Buyer/Seller Agents

General Real Estate Investing

1yFollow

Commission Fees for Buyer/Seller Agents

Eileen L.

Rental Property Investor · Member since 2021 · 58 posts · 17 votes

If selling a property for $72,900 (St.Louis), what should I expect the buyer/seller commission fees to be?

My realtor is asking for $3000 flat fee + additional listing broker compensation of $400.

What would you pay total for buyer/seller? I was thinking 5.5%, but realize the property is at a low price point.

3 Reply

148 views

Most Popular Reply

Gustavo Delgado

Houston, TX · Member since 2015 · 261 posts · 170 votes

Offer the agent 5%-6% to be paid evenly per side. If your agent does not want to take the listing look for another. You set your terms.

3 Reply

See this reply in the discussion

19 Replies

Jump to latestLatest

Sort by

Caleb Brown
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
1y
3K flat fee is reasonable. An agent is going to spend the same time on a 72K listing and a 200K listing. Our brokerage charges $495 to the broker/admin fee. Some agents will do 3% but asking anyone to do 5.5%(2.25 to each side) is not going to be attractive. I would focus on finding an agent that knows what they are doing and will get it sold, not on the cost.
1 Reply
Eileen L.
OP
Rental Property Investor · Member since 2021 · 58 posts · 17 votes
1y
@Caleb Brown thank you!
0 Reply
Blake McWilliamsBusiness Member
Realtor · Effingham, IL · Member since 2021 · 57 posts · 33 votes
1y
Hi @Eileen L.! Three thousand as a flat fee seems a bit high. I would ask them what services above and beyond the required broker services they plan to perform. I'm an agent two hours East of St Louis and would be happy to take that listing at 5.5% total if I brokered there. That being said commission is 100% negotiable. I would stand tall at 5.5% and see what they say. For most agents some income is better than no income.
Hope this helps!
Cheers!
618-508-1808
RE/MAX Key Advantage4.427 Reviews
View Page
1 Reply
John Clark
Member since 2018 · 1k+ posts · 1k+ votes
1y
Quote from @Caleb Brown:

3K flat fee is reasonable. An agent is going to spend the same time on a 72K listing and a 200K listing. Our brokerage charges $495 to the broker/admin fee. Some agents will do 3% but asking anyone to do 5.5%(2.25 to each side) is not going to be attractive. I would focus on finding an agent that knows what they are doing and will get it sold, not on the cost.
"Some agents will do 3% but asking anyone to do 5.5%(2.25 to each side) is not going to be attractive."
-----------------------------------------

Which, thanks to brokers fulfilling their fiduciary duties to their clients, would never be a problem, right?
0 Reply
Caleb Brown
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
1y
Quote from @John Clark:

Quote from @Caleb Brown:

3K flat fee is reasonable. An agent is going to spend the same time on a 72K listing and a 200K listing. Our brokerage charges $495 to the broker/admin fee. Some agents will do 3% but asking anyone to do 5.5%(2.25 to each side) is not going to be attractive. I would focus on finding an agent that knows what they are doing and will get it sold, not on the cost.
"Some agents will do 3% but asking anyone to do 5.5%(2.25 to each side) is not going to be attractive."
-----------------------------------------

Which, thanks to brokers fulfilling their fiduciary duties to their clients, would never be a problem, right?

Duh. I am saying as a listing agent I would not take on a listing at that price point offering 2-2.5% for a buyers agents on a 72K listing. Others agents will
0 Reply
Blake McWilliamsBusiness Member
Realtor · Effingham, IL · Member since 2021 · 57 posts · 33 votes
1y
Quote from @Caleb Brown:

3K flat fee is reasonable. An agent is going to spend the same time on a 72K listing and a 200K listing. Our brokerage charges $495 to the broker/admin fee. Some agents will do 3% but asking anyone to do 5.5%(2.25 to each side) is not going to be attractive. I would focus on finding an agent that knows what they are doing and will get it sold, not on the cost.

Hey Caleb! As a rural agent not near a metro area can you shed some light on your stance? Has the metro inventory recovered enough as to where you're able to still charge a premium like 4% to one side as this inquiry refers to? I do understand being selective on the type of buisness you take, but as an agent we still have a fiduciary duty to our clients to make sure they receive the level of service this price requires. Thanks!
618-508-1808
RE/MAX Key Advantage4.427 Reviews
View Page
0 Reply
Caleb Brown
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
1y
Quote from @Blake McWilliams:

Quote from @Caleb Brown:

3K flat fee is reasonable. An agent is going to spend the same time on a 72K listing and a 200K listing. Our brokerage charges $495 to the broker/admin fee. Some agents will do 3% but asking anyone to do 5.5%(2.25 to each side) is not going to be attractive. I would focus on finding an agent that knows what they are doing and will get it sold, not on the cost.

Hey Caleb! As a rural agent not near a metro area can you shed some light on your stance? Has the metro inventory recovered enough as to where you're able to still charge a premium like 4% to one side as this inquiry refers to? I do understand being selective on the type of buisness you take, but as an agent we still have a fiduciary duty to our clients to make sure they receive the level of service this price requires. Thanks!

Not sure where you are getting 4% to one side. Post was referring to 5.5% for both sides so it'd be split in the middle to the listing agent and buyers agent.
0 Reply
Blake McWilliamsBusiness Member
Realtor · Effingham, IL · Member since 2021 · 57 posts · 33 votes
1y
Quote from @Caleb Brown:

Quote from @Blake McWilliams:

Quote from @Caleb Brown:

3K flat fee is reasonable. An agent is going to spend the same time on a 72K listing and a 200K listing. Our brokerage charges $495 to the broker/admin fee. Some agents will do 3% but asking anyone to do 5.5%(2.25 to each side) is not going to be attractive. I would focus on finding an agent that knows what they are doing and will get it sold, not on the cost.

Hey Caleb! As a rural agent not near a metro area can you shed some light on your stance? Has the metro inventory recovered enough as to where you're able to still charge a premium like 4% to one side as this inquiry refers to? I do understand being selective on the type of buisness you take, but as an agent we still have a fiduciary duty to our clients to make sure they receive the level of service this price requires. Thanks!

Not sure where you are getting 4% to one side. Post was referring to 5.5% for both sides so it'd be split in the middle to the listing agent and buyers agent.

My interpretation of the original post is that the sellers agent is asking for $3,000 as a flat fee. She did not mention anything of buyers agent compensation, which is a disservice in itself. $3,000 is 4% to one side.
618-508-1808
RE/MAX Key Advantage4.427 Reviews
View Page
0 Reply
Caleb Brown
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
1y
My first reply I was saying a flat fee is common, there are plenty of agents that charge a minimum of whatever amount. Other agents aren't as picky. Some agents it is not worth their time to do less then x amount. Seller does not have to go with them, they can interview and sign with whatever agent they like. Beautiful thing about RE is there is plenty of people out there and you can find the right fir for what you need as the seller
1 Reply
John Clark
Member since 2018 · 1k+ posts · 1k+ votes
1y
Quote from @Caleb Brown:

Quote from @John Clark:

Quote from @Caleb Brown:

3K flat fee is reasonable. An agent is going to spend the same time on a 72K listing and a 200K listing. Our brokerage charges $495 to the broker/admin fee. Some agents will do 3% but asking anyone to do 5.5%(2.25 to each side) is not going to be attractive. I would focus on finding an agent that knows what they are doing and will get it sold, not on the cost.
"Some agents will do 3% but asking anyone to do 5.5%(2.25 to each side) is not going to be attractive."
-----------------------------------------

Which, thanks to brokers fulfilling their fiduciary duties to their clients, would never be a problem, right?

Duh. I am saying as a listing agent I would not take on a listing at that price point offering 2-2.5% for a buyers agents on a 72K listing. Others agents will

That's perfectly understandable at that price point. One can always refuse the listing.
Problem we get is when buyers brokers won't show because they don't like the commission percentage.
2 Reply
Gustavo Delgado
Houston, TX · Member since 2015 · 261 posts · 170 votes
1y
Offer the agent 5%-6% to be paid evenly per side. If your agent does not want to take the listing look for another. You set your terms.
3 Reply
Caleb Brown
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
1y
Quote from @John Clark:

Quote from @Caleb Brown:

Quote from @John Clark:

Quote from @Caleb Brown:

3K flat fee is reasonable. An agent is going to spend the same time on a 72K listing and a 200K listing. Our brokerage charges $495 to the broker/admin fee. Some agents will do 3% but asking anyone to do 5.5%(2.25 to each side) is not going to be attractive. I would focus on finding an agent that knows what they are doing and will get it sold, not on the cost.
"Some agents will do 3% but asking anyone to do 5.5%(2.25 to each side) is not going to be attractive."
-----------------------------------------

Which, thanks to brokers fulfilling their fiduciary duties to their clients, would never be a problem, right?

Duh. I am saying as a listing agent I would not take on a listing at that price point offering 2-2.5% for a buyers agents on a 72K listing. Others agents will

That's perfectly understandable at that price point. One can always refuse the listing.
Problem we get is when buyers brokers won't show because they don't like the commission percentage.

I do agree that happens and I’m not justifying that. I think agents that do flat fees need to be upfront with their buyers. That way in scenarios like this, they will already have the dialogue beforehand. Back when I first started in 2018 there would be properties under 50K they’d be interested in. I would have in my buyer agencies on additional terms that that there would be a minimum commission so I’m not making a few hundred bucks. I didn’t do that on a 20K deal and learned after that(my check was under $200).
0 Reply
Paul HurtubisePro Member
Investor · Malibu, CA · Member since 2016 · 52 posts · 3 votes
1y
@John Clark
Your math is not correct.
2.25 x 2 is 4.5%
0 Reply
John Clark
Member since 2018 · 1k+ posts · 1k+ votes
1y
Quote from @Paul Hurtubise:

@John Clark
Your math is not correct.
2.25 x 2 is 4.5%

I never said it wasn't. I mentioned buyers brokers not showing houses to their clients because they thought the commission split was too low. I think you confused my quoting Brown's posting as my own work.
0 Reply
Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
1y
Realistically at this price point, its hard to find a good agent. Even when they are charging you a very high percentage, the agent is probably operating at a loss. Most professional agents set a minimum dollar theyll do at these price points that will be substantial.
[email protected]301-893-4635 Podcast Guest on Show #192
District Invest Group546 Reviews
Website View Page
1 Reply
Ben FernandezBusiness Member
Realtor · Lancaster, PA · Member since 2025 · 169 posts · 97 votes
1y
Whenever a property is under $100k and the 3% won't yield at least $2,500, in most cases, agents will request a flat fee. Therefore, your agent isn't doing anything uncommon.

You can always shop around to see if you can find someone who will work by a commission percentage.
[email protected]717-945-7040
1 Reply
Brett K.
Property Manager · Louisville, KY · Member since 2013 · 309 posts · 115 votes
1y
Hi Eileen,

Is the property vacant? If it is, it's super easy to show so it's not as much hassle for the buying or selling agent. Is the buyer likely to be an investor? If so they may have a real estate license or they may work with an agent that relies on repeat business rather than a one-off purchase. My point is that there are plenty of motivated participants at this price point even if the gross commission is low.

You might want to do an online search for brokerages in your area that offer larger commission splits or a flat fee to their agents. I'm not going to through out names, but there are companies that only take $500 at closing from an agent. Those agents can be profitable on lower priced properties.

Good luck.
1 Reply
Matthew Becker
Developer · Moscow Idaho · Member since 2024 · 224 posts · 143 votes
1y
Find a young agent listing agents don't do much. At that price point marketing is not really a thing. You just chuck it on the mls.
You can find flat rate listing agents as well for probably $1000 offer buyers agent $2K so they will take the time to show it.
0 Reply
Christopher Davis
Rental Property Investor · Boulder, CO · Member since 2019 · 144 posts · 72 votes
1y
Your realtor is asking for $3000 flat fee for themselves or to be split with the buyers agent? Or you would then have to offer some amount to the buyer's agent?
I think 5.5% to be split is a reasonable offer but what do I know. Like someone else said, some income is better than no income for many people.
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.