What is the typical commission percentage in a real estate transaction?

The typical commission percentage in a real estate transaction often hovers around 5% to 6% of the sale price, but it is common to see 7% as a standard rate in some markets. This percentage is typically split between the listing agent and the buyer's agent. The exact commission can vary by region, real estate market conditions, the agreement between agents and clients, and the specific services offered.

In many situations, a 7% figure is used, particularly in areas with competitive markets, as it allows for fair compensation for the services provided by real estate professionals throughout the buying and selling process. Understanding typical commission rates is important for buyers and sellers alike, as it can significantly impact the overall costs associated with a real estate transaction.