If you’re interested in learning more about realtor commission in Florida, you’ve come to the right place. Read on to learn more about the average commission, who pays the commission, and more. There’s a lot to cover, so let’s get started right away.
Florida realtor commission is usually 5% to 6% of the home’s selling price. For example, if a home sells for $500,000, a real estate agent might get $25,000 when the sale closes.
Experienced agents will typically collect a full 6% commission, but younger, less experienced agents might receive less than that.
However, real estate agents often don’t get all of this commission. If there are two agents with the buyer and seller, the commission splits. An agent that works for a brokerage will have to pay them for assistance.
Although negotiations can happen, the seller most often pays the real estate commission in Florida. They pay for the listing agent, the person who puts the house up for sale, and the buyer’s agent to help close the deal.
The buyer doesn’t pay for the agent because they pay for closing costs and the home. The seller will likely experience the same as they find a new home to live inside, so it’s only fair they pay these costs in this exchange.
If the buyer and the seller are friendly, they can communicate and determine how they want the payments to work. There is no requirement for the seller to pay - it just tends to work out like that in a sale.
If you’re a seller, calculate the Florida commission rate before starting. This action can help you determine if you can even afford to sell your home at this time or if you should talk to potential buyers about payment options.
You can calculate the commission rate by doing the following:
- Taking the sale price of the home at the end of the process
- Multiplying it by the commission rate, in decimal form
This number is what you will have to pay. For example, if the home sells for $600,000 and there is a 6% commission rate, you would multiply 600,000 by 0.06 to get the total commission which would be $36,000.
The commission rate might be split between two agents or given to one. Calculating the number can help you feel prepared for the journey that comes with selling a place.
Although there is a general amount most real estate agents follow for commission rates, there is no law that sets this number in stone. You can feel free to negotiate with your realtor to see if they will lower the commission price.
Most real estate agents are relatively set on their real estate commission rate. After all, they need the income to survive. You might find it difficult to bring the commission rate down. Still, it doesn’t hurt to try. You never know what kind of deal you might get out of the situation.
Yes, you can negotiate a lower commission rate in Florida, but most realtors will try to stick to a 5% to 6% commission. If you don't want to pay so much commission when selling your home you can work with a flat fee or low-commission realtor that might only charge 1% to 2% to sell the property.
Buyers can also try to negotiate the Florida real estate commission they pay by asking for a commission rebate. When you get a rebate, the buyer's agent will agree to collect a lower commission and rebate you the remainder.
Real estate commissions in Florida can be expensive, but you need to remember that they are negotiable and you have options if you want to pay a lower commission. While it's not advisable to try to buy or sell a home without a realtor to save on commission, you can work with an agent that charges lower fees proffers a buyer rebate.