What Is The Typical Commission Offer to Buyer Agents?
IMPORTANT NOTE: As of August 17th, 2024, MLSs prohibit the offer of commission to buyer agents on the MLS. More info here.
As of December 2020, here is a breakdown of the typical buyer agent commission offer, based on price range, for active properties on one MLS:
Residential
| Price Range | Properties | Commission Offered * | ||||
| < 2% | 2% | 2.5% | 3% | >= 4% | ||
| $90k - $110k | 73 | 3% | 10% | 37% | 44% | 1% |
| $290k - $310k | 455 | 1% | 18% | 53% | 20% | 0% |
| $490k - $510k | 620 | 2% | 27% | 55% | 12% | 1% |
| $690k - $710k | 597 | 2% | 21% | 62% | 9% | 0% |
| $890k - $910k | 463 | 0% | 16% | 70% | 7% | 1% |
| $1,090k - $1,100k | 315 | 1% | 15% | 72% | 7% | 0% |
| $1,290k - $1,310k | 342 | 1% | 12% | 74% | 8% | 0% |
| $1,690k - $1,810k | 580 | 1% | 11% | 81% | 5% | 1% |
| $2,490k - $2,710k | 498 | 0% | 10% | 83% | 5% | 0% |
| $4.5m - $5m | 343 | 1% | 5% | 87% | 4% | 1% |
| $7.5m - $8.5m | 186 | 2% | 9% | 83% | 4% | 1% |
| $12m - $15m | 145 | 1% | 26% | 66% | 3% | 1% |
| $25m - $35m | 86 | 2% | 60% | 31% | 0% | 0% |
Land
| Price Range | Properties | Commission Offered * | |||||||
| <2% | 2% | 2.5% | 3% | 4% | 5% | 10% | >10% | ||
| $4k - $6k | 202 | 0% | 2% | 2% | 5% | 11% | 36% | 6% | 12% |
| $9k - $11k | 434 | 1% | 1% | 1% | 14% | 15% | 45% | 9% | 1% |
| $14k - $16k | 478 | 0% | 1% | 0% | 15% | 8% | 56% | 4% | 0% |
| $19k - $21k | 470 | 0% | 0% | 5% | 7% | 15% | 61% | 1% | 0% |
| $29k - $31k | 473 | 2% | 2% | 4% | 7% | 15% | 58% | 2% | 0% |
| $49k - $51k | 347 | 1% | 3% | 7% | 25% | 20% | 38% | 1% | 0% |
| $99k - $101k | 300 | 0% | 4% | 17% | 30% | 20% | 26% | 0% | 0% |
| $149k - $151k | 296 | 0% | 3% | 16% | 33% | 18% | 23% | 0% | 0% |
| $249k - $251k | 242 | 0% | 4% | 32% | 32% | 12% | 12% | 0% | 0% |
| $399k - $401k | 149 | 1% | 8% | 37% | 36% | 10% | 4% | 0% | 0% |
| $749k - $801k | 237 | 0% | 10% | 43% | 33% | 4% | 4% | 0% | 0% |
* Numbers are approximated and will not add up to exactly 100% due to some commission offers being in between (e.g. 2.75%) and flat dollar amounts (e.g. $5500).
Can I offer any commission amount I want to buyer agents on the MLS?
Yes, using a flat fee MLS listing you can. Remember that 90% of buyers are represented by an agent and that agent will likely not show your home unless you are offering a market-rate commission. Many buyers are uncomfortable representing themselves in a home purchase, so it's important to incentivize their agents. As a result, we cannot state any compensation amounts in the MLS any longer however you can have these conversations directly with a buyers agent that contacts you.
Do I always have to pay the buyer agent commission?
No. You only pay the buyer agent commission if you accept an offer from a buyer who has an agent. If the buyer does not have an agent, you do not pay any commissions.
We recommend you offer a competitive commission to buyer agents and then compare the offers that you receive from the buyer with agents to those that you receive from buyers without agents to see which will get you the most money with the least hassle.
Note that the typical real estate listing agreement requires you to pay the buyer agent commission to the listing agent even if the buyer does not have an agent. We believe this is very unfair to the seller and do not follow that practice. With homecoin.com, if your buyer does not have an agent, then you have effectively sold your home for $0 in commissions.
Does homecoin.com (or the listing agent) collect a commission upon sale?
No. Under no circumstances will homecoin.com (or the listing agent) collect a commission or additional fee upon the sale of your property unless seller agent representation is requested. Our listing agreement is set up to be very clear on this fact. You can view the full terms of our listing agreement in the footer of our website.
Many of our competitors have fine print writing in their listing agreements which require an additional fee that is due upon sale (or that they get the buyer agent commission if the buyer does not have an agent). Please be sure to read the full terms of any listing agreement that you sign. We want you to save as much money as possible on your property sale.
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