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Agent Commission Rate

The agent commission rate explains how the commission is calculated, such as 2% of the sale price, or a stepped rate where the percentage increases above a certain threshold. Some agents use a simple flat percentage, while others use tiered structures designed to reward a higher sale price. Understanding the commission rate is not just about the percentage itself, but also how it applies in practice to various possible sale prices. This matters because the structure can influence the agent’s motivation and your total selling costs.
Make Sure Your Commission Works Hard For You
A smart agent will justify every dollar of their commission by negotiating a stronger sale price and managing the campaign efficiently. Compare top agents in your area to see who offers the best value, not just the lowest rate.
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Practical Example

One agent quotes 1.9% flat on the full sale price. Another quotes 1.6% up to $800,000 and 3.3% on any amount above $800,000. You run the numbers on both options if the home sells for $820,000, $850,000 and $900,000. You discover that at higher prices, the tiered structure actually costs you more but might give the agent extra incentive to push for a top result. By comparing scenarios, you choose the structure that best matches your goals and risk appetite.

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