What is the customary commission percentage paid to real estate agents upon sale?

The customary commission percentage of 5% to 6% for real estate agents upon sale is well-established in the industry, primarily reflecting market standards across many regions. This commission is typically negotiated between the seller and the listing agent at the outset of the property sale process, with the total amount often split between the listing agent and the buyer’s agent.

This range has been shaped by various factors, including the services provided by agents, local competition, and historical precedents. In many cases, a 6% commission is standard; however, the exact percentage can vary based on specific agreements or changes in the market. The adequacy of this commission structure allows agents to cover their operating costs while also incentivizing them to support their clients through the buying or selling process comprehensively.

Understanding the common range helps prospective sellers and buyers set realistic expectations when engaging with agents. The higher commission percentages in the other options typically do not reflect average market practices and can be seen as outside the norm, potentially deterring clients if presented.