How much does a realtor make off of a house

If you’re planning to buy or sell a house in Florida, then you probably already know that there are several different costs involved.

For example, if you’re buying a home in Florida, then you need to pay the down payment before you start making monthly mortgage payments. You also might have to invest in mortgage insurance once you get your mortgage loan.

If you’re selling your home in Florida, then you may want to start making some renovations in your home or look into help with staging. You may also have to pay for escrow fees, remaining HOA dues, and more.

In either case, both sellers and buyers need to be wary of one especially important cost involved: the real estate commission fees in Florida.

What Real Estate Agents Charge In Florida

According to the National Association of Realtors, 89% of sellers used a real estate agent to help them sell their homes last year.

The vast majority of listing agents charge their clients about the same rate - roughly 2.5 - 3%. Note, this does not include the buyer agent commission that you'll need to pay.

The rate that home seller were charged depends on the real estate agent's brokerage as well as their experience level. The geographic market they work in and the specific clientele also play a role.

For the most part, though, the total real estate commission in Florida is around 5-6% of the home’s price. This includes both the buyer agent commission and the listing agent.So, if a home sells for $400,000, you'll likely be paying $20,000 - $25,000 in commissions at time of closing.

Many home seller regret the amount of commission that they pay to their agent, which has led to many low-commission brokerages growing in popularity. With these types of brokerages, you can list your home on the MLS with an experienced, local agent for as low as 1% without sacrificing results. We feel this is the direction that many consumers will trend towards in the next 5- 10 years. In other words, home sellers will not be forced to choose between paying 6% to sell their home or opting to go with a FSBO (for sale by owner) service.

Real Estate Commission Rates in Florida

The average total real estate commission in Florida is right around 5.25%. That’s the lower end of the national average that we mentioned above, but keep in mind that Florida's real estate market has been fairly hot for the last several years.

In the earlier example, the total commissions paid by seller was $20,000 at closing, but the listing agent is not actually keeping the entire $20,000.

The buyer typically hires their own agent, so the total commission is split between both the listing agent and the buyer's agent. Using the earlier example, if the commission was split in half, the seller’s agent would keep $10,000 and the buyer's agent would get $10,000.

At SimpleShowing, we offer a 1% listing fee versus the typical 3% charged by most big brokerages. You'd still need to pay a 2.5 - 3% buyer agent commission, but in the end, you'd still save 2% (or about $11,000 on average) when selling in Florida.

Who Pays a Real Estate Agent's Commission in Florida?

On occasion, in rare cases one agent will work for both the buyer and the seller in Florida. This is referred to as "dual agency." Other times, the homeowner may handle the sale of their house on their own, but over the years, “for-sale-by-owner” transactions has dropped in adoption among home sellers.

In the vast majority of cases, sellers and buyers both have their own real estate agents in Florida. Each agent is tasked with looking out for their respective client’s best interests while also working together toward the common goal of finalizing the sale of the home.

You already know that a seller’s agent charges their client a commission once the home is sold. However, many homebuyers in Florida hear this and assume that means they don’t have to pay their agent. Many agents even market themselves by explaining to potential clients that their services are "free". As it turns out, that’s not completely true.

Instead, it’s probably more accurate to say that both the buyer and the seller end up paying the real estate agents, albeit in a fairly roundabout and indirect way. The seller actually foots the bill for both agents and the time of closing, but realistically, the buyer could have purchased the home on their own (without a buyer agent) and saved roughly 2.5 - 3% on the price of the home.

So, while technically the seller pays the real estate agent’s commission in Florida, the cost of the buyer agent is baked into the price that the homebuyer is paying for the home.

How to Save Money on Real Estate Commissions in Florida

At SimpleShowing, we are pioneering a new way of helping homeowners save a lot of money when they hire experienced agents to sell their homes. SimpleShowing is currently operates in  the Orlando, Tampa, Miami, Ft Lauderdale, Atlanta and Dallas, TX markets. To get started, request a free home valuation.

Subscribe to our blog to learn more about how Realtor commissions work or contact us today to learn more about our 1% listing fee.

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