Do I really have to pay my real estate agent?
If you’re planning to buy or sell a home in Walnut Creek, Lafayette, or anywhere in the East Bay, chances are you’ve wondered:
“Do I really have to pay my real estate agent?”
It’s a common question—and a fair one. Real estate transactions involve big numbers, and understanding how agents get paid can help you make better decisions, whether you're a buyer or a seller.
How Real Estate Commissions Work
Let’s break it down.
Most real estate agents earn money through commission, which is a percentage of the final sale price of a home. This amount is paid only when the transaction closes. Until then, the agent typically works without upfront compensation.
Typical commission: 5–6% of the sale price
Who pays: The seller, in most cases
How it’s split: Usually, the commission is split between:
The listing agent (who represents the seller)
The buyer’s agent (who brings in the buyer)
So if the total agreed commission is 6%, often 3% goes to each agent. Again, that’s not a legal requirement—it’s always negotiable.
Buyers: Do You Pay Your Agent?
In most situations, buyers do not directly pay their real estate agent. You won’t be writing your agent a check at closing. Instead, the commission is typically paid by the seller out of the proceeds of the sale.
That said, yes—if you’re the buyer, the cost of the commission is baked into the home’s sale price. But so are other costs like title insurance, marketing, and escrow services. It’s all part of the transaction.
The good news? As a buyer, you can often get full-service representation at no out-of-pocket cost.
Sellers: What Are You Paying For?
If you’re the seller, yes—you’re the one paying the commission. But it’s not just a fee for putting your home on the MLS.
You're paying for:
Marketing your home effectively online and offline
Professional negotiation with buyers and agents
Pricing strategy and market analysis
Photography, staging, and presentation
Open houses and private showings
Coordinating with escrow, inspections, and timelines
A skilled listing agent can maximize your sale price, minimize the stress, and help avoid costly mistakes. That’s a return on investment—not just a line item.
Is Commission Always 6%?
No. Commissions are not fixed by law. They’re completely negotiable.
Some agents may charge more if they offer extensive services like premium marketing or concierge prep. Others may offer a lower rate in specific situations. What matters most is not just what you pay—but what you get for your money.
Ask:
How will you market my home?
What’s your average list-to-sale price ratio?
How quickly do your listings sell?
What services are included?
Final Thoughts
Real estate agents get paid when they deliver results. Whether you're buying or selling, a strong, experienced agent can often save or earn you far more than their commission.
So yes, you’ll likely be paying a commission—but if your agent does their job right, you’ll come out ahead.
If you want to understand exactly what services you’re getting—and how we can help you buy or sell smart in today’s market—message us at Ask Brendan. We’re happy to walk you through it.
