Commissions for real estate agents explained | Sandberg Estates

Lauren Payet
Lauren PayetJun 21, 2024
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Factors That Affect Agent Commissions 

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. 


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When negotiating, consider the following factors:


Market Conditions: In a hot market, agents might be less willing to lower their commission rates due to the higher demand for their services.

Property Value: Higher-value properties might allow for more flexibility in commission rates.

Agent's Experience: Experienced agents may charge higher rates, but they also bring valuable expertise and a track record of successful sales.

Scope of Services: If you require additional services, such as extensive marketing or staging, this could affect the commission rate.


Tips for Successful Negotiation


Do Your Research: Understand the average commission rates in your area and what services are typically included.

Communicate Clearly: Be upfront about your budget and what you expect from your agent.

Be Open to Compromise: Sometimes, a slightly higher commission might be worth it for exceptional service and a quicker sale.


Common Negotiation Pitfalls


Focusing Solely on Commission Rate: While it's important, don't let the commission rate be the only deciding factor. The quality of service and the agent's ability to achieve a high sale price can be more significant.

Not Considering the Agent's Costs: Real estate agents incur various business expenses, such as marketing costs, professional fees, and transportation. Understanding these costs can provide context for their commission rate.


Discover Sandberg's Transparent Approach to Real Estate Commissions

Why make Mallorca your home?

At Sandberg Estates, we believe in transparency and fairness when it comes to real estate commissions. Our approach is designed to provide clarity and ensure that our clients understand exactly what they are paying for and why. 

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. 

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Understanding what percentage real estate agents get and the factors that influence these rates can help you make informed decisions when buying or selling property. 

By considering market conditions, property type, and the scope of services provided, you can negotiate a commission rate that works for you. At Sandberg Estates, we are committed to transparency and fairness, ensuring that our clients receive exceptional service and value for their investment. Whether you're a buyer or seller, our experienced agents are here to guide you through every step of the real estate transaction, making your experience as smooth and successful as possible.  


Choosing Sandberg Estates means choosing a team of dedicated professionals who prioritise your needs, offer comprehensive support, and deliver outstanding results. Contact us today to learn more about our services and how we can help you achieve your real estate goals. 

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