Commissions for real estate agents explained | Sandberg Estates

Several factors can influence the commission rate charged by a real estate agent. Understanding these can help you make informed decisions and potentially negotiate a better deal. 

Location and Market Conditions 

The location of the property and the prevailing market conditions play a significant role in determining commission rates. In high-demand areas or during a seller's market, agents may be able to charge higher commissions due to increased competition among buyers. Conversely, in a buyer's market or less desirable locations, commission rates might be lower. 

Economic Climate 

The overall economic climate could impact commission rates. During economic downturns, real estate transactions may decrease, leading agents to adjust their commission rates to attract more clients. 

Special Properties 

Unique properties, such as historical homes or those with unique architectural features, might also affect the commission rate. The added effort to market and sell such properties could justify a higher commission. 

How Commissions Are Split Among Parties 

Real estate transactions can involve multiple parties, and the commission is usually divided among them. Understanding how these splits work can provide clarity on what percentage do real estate agents get and how it impacts their earnings. 

Real Estate Agent and Agency Splits 

In most cases, the commission is split between the listing agent and the buyer's agent. However, it doesn’t end there. Both agents typically work under a real estate agency who also takes a portion of the commission. The split between the agent and agency can vary, commonly ranging from 50/50 to 70/30, depending on the agent’s experience, track record, and the agreement with their employer. 

Experienced Agents vs. New Agents 

Experienced agents who have a proven track record of successful sales and a strong client base may negotiate better splits with their brokers, sometimes keeping as much as 80% or more of the commission. New agents, on the other hand, might receive a smaller percentage until they establish themselves in the industry. 

Clear and Transparent Agreements 

We provide clear, detailed agreements that outline our commission rates and the services included. This transparency helps build trust and ensures that there are no surprises during the transaction process. 

Competitive Rates 

We offer competitive commission rates tailored to the specific needs of our clients and the market conditions. Our goal is to provide exceptional value while ensuring that our agents are fairly compensated for their expertise and hard work. 

Exceptional Service 

At Sandberg Estates, we pride ourselves on delivering top-notch service. Our experienced agents are dedicated to achieving the best possible outcome for our clients, whether they are buying or selling a property. We believe that our commitment to excellence justifies our commission rates and ensures a successful real estate transaction. 

Negotiable Terms 

We understand that every client’s situation is unique, and we can be open to negotiating our commission rates to better meet your needs and budget where possible. Our approach aims to ensure that you receive the best possible service at a fair and reasonable cost.