by Gernot Taschler 
When it comes to residential real estate transactions, the customary commission is typically 6% of the final sale price, which is evenly divided between the buyer’s agent and the seller’s agent.
For residential rental transactions, the standard commission is either 10% of the lease value or equivalent to one month’s rent. This commission is distributed equally among the agents involved in the transaction.
Who Covers the Commission?
The property owner always bears the responsibility of paying the commission when selling or renting a property. Buyers and tenants are never required to pay commissions to the agents. The commission owed to both agents is the responsibility of the landlord and/or the seller.
Did You Know Real Estate Consultants Earn Their Fees?
Real estate consultants do not receive compensation for their time or the work they undertake. Their payment is contingent upon the successful completion of a transaction. Even if an agent spends days or months working with a buyer or seller, they only receive compensation when the transaction is finalized. Agents are remunerated at the time of closing.
Where is the Commission Amount Specified?
The commission amount is outlined in the listing agreement. This agreement details the percentage of commission the agent will receive upon closing, as well as the percentage allocated to the agent representing the buyer or tenant. This information is made available in a multiple listing service (MLS), along with other property data. This ensures that agents are aware of their expected compensation upon completion of the transaction. The support and guidance provided by a professional real estate agent justifies every dollar of the commission.
When engaging in a property purchase or sale, it is crucial to collaborate with a real estate agent who possesses the necessary knowledge, experience, and tools to offer you the guidance required to make your transaction as secure as possible and align it with your financial and personal expectations.
