Listing Contracts And Commissions
Commission Basics


In the following list, we try to answer every question you've ever had about commissions but were too embarrassed to ask:

  • Who pays the commission? Usually sellers pay the commission, although in rare cases, buyers pay their agent directly. After all, sellers get money when property sells.

  • Are commissions set by law? There's no such thing as a legal minimum commission or a mandatory percentage. Commissions vary from one area to the next. The price and type of property being sold also affect the percentage. Commissions on houses, for example, usually range from 4 to 7 percent of the sale price, and commissions on vacant land can go as high as 10 percent.

  • Are commissions negotiable? Yes.

Next Step: Seller Disclosure Statements

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