Average Buyer’s Agent Commission – 2019 Update
Why are buyer’s agent’s commission rates important? Most people know that real estate agent commission (whatever it is negotiated to be) is typically paid by the seller to the seller’s agent and then split between the seller’s agent and the buyer’s agent, but they often assume (incorrectly) that the split is 50/50. The majority of the time that is not the case.
Say for example the seller’s agent charges 6% commission. In that case, in our area, most of the time they are offering the buyer’s agent 2.5% and keeping 3.5%. Or let’s say you found a seller’s agent that charges 3.5% total. In that case, the seller’s agent would take 1% for themselves and still (the majority of the time) offer 2.5% to the buyer’s agent. (As the number one seller’s agent in Portland, last few years, I charge 4.5% max. commission and pay more to market my homes online so they sell faster and for more. I also offer the buyer’s agents in our area 2.5% and therefore usually make 2%.)
Looking for the average commission rate to sell your home?
We have that too. Check out our 2019 update on the average commission rates charged by real estate agents nationwide here.
Average buyer’s agent commission offerings in Portland 2019.
In the last 3 months in Portland 2,320 regular detached homes sold. Of those 2,320 sales:
- 2.5 % was the buyer’s agent commission a whopping 2076 times or 89% of the time.
- 2.25% was offered 102 times or 4%.
- 2.7% was offered 65 times or roughly 3%.
- 3% was offered 41 times or roughly 2%.
- Misc. commission rates were offered 36 times or a little more than 1%.
Doesn’t real estate commission change with luxury homes or higher priced properties?
Yes, it is pretty common for buyer’s agent commission to be less when the home price is over a million, but not as often as one might think. In the same time frame as above in 2019, a total of 85 homes over one million dollars sold. Of those 85 sales:
- 2.5% was offered 73 times or 86% of the time.
- 2.25% was offered 10 times or 12%.
- Misc. commission rates were only offered then twice.
Real Estate Commissions are Negotiable
It is important to ask your seller’s agent what commission they are offering the buyer’s agent. You can see that over 10% of the time above in Portland they are offering something other than 2.5%. The seller’s agent commission rate and the buyer’s agent commission rate are negotiable.
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