Commissions in California are NOT set by law and are negotiable between brokers and sellers. 5-6% is the commissions that has been normal for many years. The buyer’s agent usually receives half of the total commission. Meaning a total 6% commission will result in each brokerage firm receiving 3.0% of the sales price. The agents then split that with their respective companies (commissions belong to the broker, not the agent) minus a small transaction fee. So, a listing agent that charges a seller 6% of the sales price for a total commission would probably receive about 75% of 3% and the buyer’s agent would receive the same. Agents usually pay for the professional photography, signs, brochures, food for broker tour and any costs they pay to their assistants or transaction coordinator. Discuss this in detail with your agent.
Posted in: FAQ for Sellers
