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.

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...

portland real estate commission

Average Commission Rate for a REALTOR® in Portland?

November 18, 2015

National average for commission rates: 1992 = 6.04% 2005 = 5.02% 2011 = 5.3% 2013 = 5.38% 2014 = 5.18% Information derived from Real Trends, an industry publishing and consulting firm. They obtain their data from conducting surveys with brokerage companies. Commission Trends According to the Journal of Real Estate Finance and Economics Jan. 2014 report, commission rates tend to increase during a down housing market and decrease during a housing market boom. You can see this reflected in the above real estate commission rate chart. My commission plan is far better than the national average. You can see my reasonable commission breakdown for sellers here. Get reduced rates and increased marketing for your Portland home with a top 5% agent...

real estate agent commission

Five Little Known Facts About Real Estate Agent Commission

October 16, 2014

Real estate agent commissions – an unavoidable, fixed cost of buying or selling a home, valuable only as incentive to real estate agents. Right? Wrong. Here are five little known facts about real estate agent commissions. 1. Real estate agent commissions typically come out of the proceeds of the sale of the home. Some people think of their real estate agent’s commission as a fee charged on top of the sales price. It’s not. Because most homes in the Portland real estate market and around the world are bought and sold using a real estate agent, market prices reflect the value of the home, real estate agent commission included. It’s not tacked on above and beyond the price the home...

real estate agent commission

Real Estate Agent Commissions – Explained!

August 18, 2013

Being a real estate agent is definitely not on anyone’s list of jobs for a regular, predictable income. That’s because we don’t earn a salary. No regular pay days, no holiday bonuses, no raises based on performance. It’s true – real estate agents typically make their living only from commissions, or a percentage of the price of the home they help their client buy or sell. Does it make sense to shop around for a real estate agent with a lower rate? The answer is, absolutely. All real estate commission is negotiable. It’s still your money, and as Portland’s 2% listing agent, I am proud to offer a reasonable commission rate to my clients. Most of my clients selling a...