One of the most eye-opening – and disappointing – aspects of selling a house is seeing your profits dwindle due to selling expenses. Repairs and closing costs can significantly reduce your bottom line, making you wonder if the time and money you spent preparing to sell your home were worth it.
One of the most shocking expenses when selling a house is realtor commissions. Most homeowners are unaware of how much a realtor can make on a single transaction. The amount is high enough to further cut into your profits. When combined with other selling expenses, realtor commissions can diminish your efforts to get ahead while selling your home. How much commission do realtors make, and is it worth it to hire them? Let’s take a closer look.
What Are Realtor Commissions?
The realtor’s commission is a fee paid to a realtor for the services provided to home buyers and sellers. It is typically paid to the real estate brokerage firm that the realtor works for and then split with the realtor on a pre-determined basis. Most realtors are not paid hourly, weekly or monthly fees. Instead, their income depends on the commission they earn when they close a real estate deal.
It should be noted that the percent is not paid to one realtor. Most real estate transactions involve two realtors—one representing the selling party (listing agent) and the other representing the buying party (buyer’s agent). The commission is split into two equal parts, with each realtor receiving their portion of the commission.
How Much Does a Real Estate Agent Make Per Sale?
While the commission can be a pre-determined flat fee (i.e., flat fee agencies), most realtors charge a percentage of the property’s final sale price. The total commission percentage can vary, but it is generally around 5–6% of the property’s final selling price. That amount seems small at first glance. However, when you do the math, it’s a larger number than you realize. Look at the commission on some of these sales below.
Final Sale Price |
Commission % |
Total Payout |
| $100,000 | 5% | $5,000 |
| $200,000 | 6% | $12,0000 |
| $250,000 | 5% | $12,500 |
| $300,000 | 6% | $18,000 |
As you can see, realtor commissions can take a huge chunk out of your profits, leaving you with a little leftover. Let’s do the math on what your selling expenses look like with realtor commissions combined.
Let’s say you are selling an older home for $200,000 in the Louisville area. Since the home has a few years on it, you need to repair the property to current building standards. In addition, you can count on spending money on closing costs. If we look at what the average home seller spends on selling costs, here is what you can expect to pay with realtor commissions combined.
Selling Cost |
Average Amount |
| Repairs and upgrades | $11,000 |
| Closing costs | $7500 |
| Home staging | $1100 |
| Home inspection | $350 |
| Realtor commissions | $12,000 |
| TOTAL: | $31,950 |
So, if you are selling your house for $200,000, you can expect to pay around $30,000 just to close the sale. Realtor commissions make up about one-third of your selling costs – the largest of any expense.
Are Realtor Commissions Negotiable?
You have probably heard it said that if you want to cut house selling costs when selling your home, try negotiating the real estate agent’s commission fee. However, contrary to popular belief, you cannot negotiate with real estate agents on commissions in most situations. Most commissions are hidden by traditional real estate firms. They usually are not readily provided to potential home sellers and they usually are not negotiable.
The main reason commissions are non-negotiable is that they split between the listing and buyer’s realtors. Using the example above, a $12,000 commission would turn into $6,000 for each agent. The agent then splits the $6,000 commission with the agency and deducts any expenses. As a result, their commissions are greatly reduced. It is why they usually do not negotiate their commission.
However, as the seller, how much the agent makes is not your concern. What is your concern is that you spent a total of $12,000 on real estate commissions. That is a large sum of money on a $200,000 house sale.
Sell Your House As-Is Directly to a Buyer to Avoid Realtor Commissions
To avoid realtor commissions, repair expenses, and closing costs, the best way to unload your property is to sell your house as-is for cash directly to a buyer in Louisville, Kentucky. There are several benefits of bypassing a realtor.
- You do not have to list your house on the market.
- You sell your house as-is – repairs or upgrades.
- You avoid paying realtor commissions.
- Sell your house when you want instead of waiting for a buyer.
- Sell your house regardless of your current situation.
Some realtors may not take you as a client if your situation makes it difficult for them to sell your house. However, when you sell directly to a buyer, your situation does not matter – a new job, relocation, military, divorce, probate, foreclosure, bankruptcy, damaged house, or rental house.
How to Sell My House Fast in Louisville, KY
You may be wondering, “How do I sell my house fast in Louisville, Kentucky?” We Buy Real Estate can buy your house in three easy steps.
Step 1: Contact Us
Step 3: Get a Fair Cash Offer
Step 3: You Get Paid
Call We Buy Real Estate or fill out the contact form to schedule a quick walkthrough of the property. Don’t worry about making any renovations or repairs or even cleaning the house. We buy houses as-is. Feel free to ask any questions or express your concerns. We are happy to discuss your situation.
If our buyers like what we see, we will make a fast cash offer at just under your house’s current market value. In most cases, we can offer as little as 24 to 48 hours after seeing the property. When you work with We Buy Real Estate, you get a fair offer for your house.
If you accept our offer, you can schedule a closing date that is convenient for you. We pay all closing costs and fees. You simply show up, sign the papers, and get paid. When you work with us, selling your house in Louisville has never been easier. Get started with us today!
Sell Your House Fast to We Buy Real Estate
Selling your house can be easier than ever when you sell your house for cash to We Buy Real Estate. We offer a simple, no-cost solution that helps you get out of your mortgage or sell your house regardless of your situation. To find out more about the benefits of selling your house for cash, call 502-458-2722 and get a fast cash offer.