Real Estate Commission

As a licensed Portland real estate agent since 2003, I know that real estate commission is a hot topic in our industry and with my clients. Since the beginning of my career I have worked hard to make sure our 4.5% max. real estate commission rate was upfront and clear with all of our clients. We’ve worked hard to show that the 2% commission that we earn on a sale provides incredible marketing for our client’s homes, enabling their homes to sell faster and for more.

real estate commission calculator

Real Estate Commission Calculator

September 28, 2020

What is Real Estate Commission? Real estate commission is typically a single percentage of the sales price of a sold property that is paid to the seller’s agent’s Realty company directly out of escrow proceeds at the time of a sale. This commission calculator formula is fairly straight forward most of the time, but there are notable exceptions. Please note, all real estate commission is negotiable in the U.S. and there is no set standard. Four Main Real Estate Commission Exceptions: 1. Who is Representing Who? Real estate agents that want to be sure not to overcharge their clients might have different rates depending on who represents who. For example, we charge a max. of 4.5% commission where we earn...


how much do real estate agents make

How much do Real Estate Agents Make? 2020 Update

August 7, 2020

The National Association of Realtors puts out a Member Profile Report nearly every year that spells out exactly how much real estate agents make, or in this case since they are all members, how much Realtors make. Confused as to the difference? Read our article on Agent vs. Broker vs. Realtor. In 2020 the median gross income of Realtors was $49,700 2012 2013 2014 2015 2016 2017 2018 2019 2020 34900 43500 47700 45800 39200 42500 39800 41800 49700 Realtor Income Hasn’t Changed Much I will tell you exactly why this is the case. It might surprise our readers but real estate commission rates haven’t changed much over the last ten years (see our 2020 national average commission rates report...


average real estate commission report

Average Real Estate Commission, Buyers Agent Rates – 2020 Report

July 24, 2020

When people think of real estate commission, they often think of 6%, 5%, or 4.5% (what we charge as our max. rate). The public is not generally in their mind dividing commission between the sellers agent and buyers agent. But in the vast majority of real estate transactions the commission is split between those two agents, and it is not typically split 50 / 50 like many would assume. No, each area has its own majority commission rate that is offered to the buyer’s agent. All real estate commissions are negotiable, what I’m providing here is research on the local commission rates offered in Portland, Oregon using the data available from RMLS, our local MLS provider where buyers agent commission...


real estate commission

Real Estate Commission Report – 2020 National Average

July 17, 2020

Real estate commission data is hard to come by. One of my goals as a real estate agent in Portland is to educate the public and provide transparency within the real estate industry on a number of topics – including commissions. Most of the information you can find online is dated or summary in nature, many without proper references. Realogy Brokerage Group has, “As of December 31, 2019, approximately 710 company owned brokerage offices and approximately 52,200 independent sales agents working with these company owned offices.” They report that their average commission per side was 2.41%, which would equal a 4.82% commission rate for the seller (since the seller typically pays both sides of the commission and the buyer does...


Average Buyer’s Agent Commission – 2019 Update

June 10, 2019

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...


real estate commission average

Average Commission Rate for Real Estate Agents – 2019

March 18, 2019

National Average Realtor Commission 2019 1992 = 6.04% 2005 = 5.02% 2011 = 5.3% 2013 = 5.38% 2014 = 5.18% 2015 = 5.26% 2017 = 5.12% 2018 = 5.08% Above numbers are from Real Trends, a real estate news and research company based in Colorado. The More Real Estate Agents There Are – the Lower the Rates In their latest report, Real Trends does a fantastic job charting out the forces that affect real estate commission rates, the most striking being the number of Realtors. (Read our report on how many real estate agents there are right now.) Right now the number of Realtors is at an all-time high, so therefore we see reduced commission rates, at least from 5...


average buyers agent commission

Average Buyer’s Agent Commission 2018

March 29, 2018

Most folks know that the real estate agent commission is typically split between the buyer’s agent and the seller’s agent. What most folks do not know is the split varies, it is not always, not even typically 50 / 50. Your seller’s agent could be offering a lower or a higher rate of commission to the buyer’s agent. Locally this buyer’s agent commission is advertised on the RMLS, our local multiple listing service, and it is not something the public can view. If you are considering selling your home, it is important to know what your listing agent is going to offer the buyer’s agent in RMLS. Check out our 4.5% max. reasonable commission rate here. Average buyer’s agent commission...


average commission rate real estate

Average Commission Rate for Real Estate Agents – 2018 Update

March 12, 2018

National Average Realtor Commission 2018 1992 = 6.04% 2005 = 5.02% 2011 = 5.3% 2013 = 5.38% 2014 = 5.18% 2015 = 5.26% 2017 = 5.12% *Above numbers are from Real Trends. Commission rate averages are hard to come by. Real Trends, a real estate industry publishing and consulting firm, is one of the only available sources of information. Steve Murray, president of Real Trends, Inc wrote in fall of 2017 that, “the average commission rate has dropped about 20 basis points in the last five years (5.32 to 5.12).” Portland Real Estate Market Commission All real estate commission is negotiable and there is no set standard. Local commission rates in Portland are not published, but it doesn’t take long...


average portland real estate commission

Average Commission Rate for REALTORS? 2017 Update

March 10, 2017

The national average real estate agent commission rates according to RealTrends are: 1992 = 6.04% 2005 = 5.02% 2011 = 5.3% 2013 = 5.38% 2014 = 5.18% 2015 = 5.26% 2016 = Final numbers not revealed yet, analysts predict it will drop from 5.26% but remain higher than 5%.* * From a Washington post article, “based on preliminary data, it’s likely to decline… when the final numbers are tallied for 2016.” The above information on yearly commission averages comes direct from Real Trends, a real estate industry publishing and consulting firm that obtains transaction data from surveying real estate brokerages. Portland Commission Averages The local rates Realtors in Portland charge their clients to list a home are not published. All...


portland real estate commission

Why Portland Buyer’s Agent Commission Matters

October 7, 2016

When you’re listing your home for sale on the Portland real estate market, the last thing you’re probably worried about is the Buyer’s Agent Commission rate, or BAC. Most people know sellers typically pay the listing agent’s commission and the buyer’s agent’s commission. Home sellers should ask what listing agent is offering the buyer’s agent, the BAC, in RMLS. The home owner may wrongly assume the listing agent always splits the commission 50/50 with the buyer’s agent. While the listing agent might be splitting the commission 50/50 with the buyer’s agent, it may not be the case. It is not the case with our commission rate. The RMLS, our local listing source for nearly every home sale in the Portland...