Does the value of my home affect the commission that I pay?

Mark, the rate does not change with value automatically, but the dollars absolutely do, and that is exactly where your leverage lives. Before anything else: every answer above mine was written before August 17, 2024, and the rules changed that day. So here is the current picture. Since the NAR practice changes took effect, offers of compensation to a buyer's agent can no longer be published through the MLS. Sellers can still offer to pay a buyer's agent, and can still offer concessions, but it happens outside the MLS and it is a separate negotiation from what you pay your own listing agent. And any agent working with a buyer now has to have a written agreement with that buyer before touring a home, spelling out what that buyer's agent gets paid. The practical effect for you as a seller is that the old single number is now two conversations, and both are negotiable. Now, to your actual question. Commission rates are not set by any association, any MLS, or any law. They never have been. There is no rate that "is" the rate. What exists is a norm in each market, and a norm is just a starting point in a conversation. Does value affect it? Here is the honest answer. The work of selling a $250,000 house and a $900,000 house is not the same, but it does not differ by a factor of three and a half either. Photography, staging strategy, showings, negotiation, escrow management, and the hours involved do scale somewhat with price point, because higher-priced homes generally take more marketing and a longer runway. But they do not scale linearly with the check. That is precisely why higher-priced sellers have real room to negotiate and lower-priced sellers usually have very little. So the practical answer is that rates tend to compress as price rises, not by rule but by negotiation, because at a higher price a smaller percentage still funds a serious marketing effort. The structure nobody in this thread has mentioned, and the one I would actually ask for: a graduated commission. You agree on a base rate up to a target price, and a different rate on every dollar above it. Say a lower base rate up to your expected value, and a higher rate on anything over. Now your agent has a direct financial reason to fight for the last twenty thousand instead of pushing you to accept the first clean offer. It aligns the incentives instead of just cutting the fee, and a confident agent will usually take that deal. Two cautions. Do not shop on rate alone. The cheapest listing fee is a bad trade if the marketing is weak, because a 1 percent savings on commission disappears instantly against a 3 percent shortfall on price. Ask what specifically is being done to sell your house, get it in writing, then negotiate the fee against that plan. And ask what happens to the buyer-side compensation question in your specific market. In some markets sellers are still commonly offering it, in others buyers are covering it directly, and it materially affects your net. Your listing agent should be able to tell you what is actually happening in Western New York right now, not what happened in 2023. I am a real estate professional, not an attorney, and New York transactions are attorney-involved, so loop yours in on the listing agreement before you sign. My name is Zoltan Peresztegi and I work in Los Angeles, the South Bay and on the Palos Verdes Peninsula, so I am not the person to list a Buffalo house. If you want an introduction to a strong listing agent there who will discuss a graduated structure without getting defensive about it, message me and I will make one. Zoltan

Real estate commissions are negotiable and can vary based on the property, market conditions, services provided, and the agreement between the seller and the brokerage. In some cases, higher-priced homes may be listed at a lower percentage because the larger sale price can still generate substantial compensation. In other situations, luxury properties may require more extensive marketing, professional media, staging coordination, and specialized expertise, which can justify a similar or even higher rate. Rather than focusing solely on the percentage, I would look at: • The total cost. • The services included. • The agent's experience and track record. • The marketing plan. • Your estimated net proceeds. A lower commission is not always the best value if it results in less exposure, weaker marketing, or a lower sales price. Likewise, a higher commission doesn't automatically mean better service. When interviewing agents, ask them to explain exactly what they provide and how their strategy will help you achieve your goals. The focus should be on the overall value and expected outcome, not just the commission percentage.

The percentage usually stays the same regardless of price, but it's negotiable. A $200K house and a $2M house might both be 5-6%, but the dollar amount is way higher on the expensive one. Some agents will negotiate a lower percentage on higher-priced homes because the payout is already big. Others won't budge. It's worth asking, especially if your home is on the higher end. Just remember, commission is always negotiable. Don't assume it's locked at whatever rate they first quote you.

Yes, commissions are typically percentages and as such vary depending on the sales price. Keith Jean-Pierre Managing Principal The Dapper Agents Operations In: NY, NJ, FL & CA

No the value of your home does not determine the fee for service or commission you will pay. Commission is always negotiable between seller & the real estate agent

Typically no, the value of your home does not influence the fee for service paid. Commission is always negotiable between the owner & the real estate agent

Yes the amount of commission changes with your home price, but the rate itself is always negotiable and can vary based on the property

The commission percentage usually stays exactly the same, but the total dollar amount you pay will increase as the sale price of your home increases.

Commission rates are not set by law and are always negotiable. They do not automatically change based on the home's value. In practice, commission structures can vary. Some higher-priced homes may be offered at a different percentage due to the scope of work, marketing costs, or market conditions, while others are not. There is no standard rule that expensive homes always have lower or higher commission rates. What matters most is understanding what services are included, how the home will be marketed, and how the agent is compensated, rather than focusing only on the percentage.

Depending on what is discussed and agreed upon in a listing agreement. Commission is generally based on a percentage, that is agreed upon between the seller and the listing agent. There is NOT an industry set rate as to what the commission is to be on a contract. To answer your question about more expensive houses, yes, the commission is normally higher.

You typically will pay for “professional services” as a percentage of the final sales price. So the total commission you pay is related to the value of the home in a way. However, you will agree to the commission rate when you sign the listing paperwork with your agent.

Not really - Brokerage fees are negotiable, but the old saying goes, you get what you pay for. It applies here as well

Commission rates are negotiated. The price of your home does not necessarily affect the commission percentage. In fact, the more assistance an agent needs to provide and higher level of skill your home needs to sell may determine what percentage is negotiated.

The short answer is no. However, there are a lot of different variables related to underpaying the customary commision that could affect the the highest possible sales price.

Hi Mark: Commissions are usually a percentage rate of the sale price of the home and are negotiable. There are even some agents that have a fee schedule based upon the level of service for each rate. Real Estate markets across the country are not all the same. Just as a caution, sometimes cheaper is not always better. Experienced, excellent real estate agents are worth every penny!

Fees charged do not depend on the value of the home but rather on the policy of the broker/agent/company that you are working with. With that said, the value of the home does impact fees from the standpoint of most fees are based on a % of the sale price. However, fees do NOT have to be based on a % of the sale price. there are so many variables to consider and some companies allow for flexibility, and others may not. Our code of ethics does not allow us to discuss fees between companies so we have little knowledge of how much other companies charge for services or their structure for such. I am a native of Buffalo and would welcome your contact to discuss further if desired.

They are always negotiable but there is no set amount based on the list or sale price.

Commission usually a percentage and the morre the home is the more the commission is. The less the home is the less commission. Commission is typically 6%.

Not necessarily the value, but the sale price yes.

Since real estate is local, so are the practices of working with an agent. Here in Raleigh NC the realty commision paid by a seller is a negotiated percentage of the Sfinal ale Price, not the value as you would see published in tax records.

In my experience, no. I rarely see certain price points at different commission percentage rates. Luxury homes vs. starter homes for example usually have similar commission rates.

Commission rates are negotiable. There are many variations of rate agreements from flat percentage to scale percentage or flat fee or scale fee. Usually the rate agreed upon for services is fixed so the only variation would be if the property sells for less then less commission if higher, then higher dollar commission.