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2023 Commission and Marketing
Breakdown
All Marketing Packages Come With Our Out-Of-State Concierge Service. LUKA MIHOVILOVIC eXp Realty | DRE 02001949 Table Of Contents Silver Package......................... 1 Gold Package......................... 2 Platinum Package................... 3 (626) 616-0457 | luka@teamluka.com | www.teamluka.com
How Much is the Real Estate Agent’s Commission?
When an agent is paid on commission, they get a percentage of the final sale price of the property they sold. The average commission for a real estate agent can vary, but it is generally around 6%.
Who Pays a Real Estate Agent’s Commission?
The seller is responsible for paying the real estate commission. A real estate agent will not see their share of the money until the deal is closed, all closing costs have been paid, and the agent’s sponsoring brokerage releases their cut.
Is there a Limit to a Real Estate Agent’s Commission?
There is no cap on how much a real estate agent can make. It is rare for a real estate commission to exceed 6%-7%, but rock star agents have made millions through high-volume sales of luxury homes. With real estate, you ultimately get what you give.
How Does the Real Estate Commission Get Split?
6% is split between the seller’s agent and the buyer’s agent. That amount is then shared with the agent’s broker, usually at a ratio of 60/40 in the broker’s favor.
Let’s say an agent successfully sells a home for $1M. The breakdown would look something like this:
6% total commission on the sale ($60,000) split between the listing agent and buyer’s agent 50/50 ($30,000)
60/40 split between agent and broker ($12,000)
How Commission Gets Split Between Real Estate Agents
The commission is split between the seller’s agent and buyer’s agent right down the middle. Usually, the commission is paid directly to the brokerage, who distributes it to the agent.
How Commission Gets Split with the Broker
The typical commission split between an agent and broker is 60/40 in the agent’s favor. Over time, however, the brokerage fee may decrease depending on an agent’s productivity and experience. Still, the agent will always pay a brokerage fee, even if it’s just 20% of their half.
Can Real Estate Agents Negotiate a Higher Commission Split?
An agent can negotiate a higher commission split with a brokerage the same way they would ask for a raise in a more traditional job. Performance, experience, productivity, and even better offers from other firms are solid arguments for negotiating a higher commission split.
What is the Average Real Estate Agent Commission in California?
The average California real estate agent commission rate is between 5-6%. However, commission on higher-priced home and property sales average 4-5% percent. The seller and agent usually negotiate the commission amount before entering into a listing contract.
SILVER PACKAGE
5% Commission
Strategically price your home based on current sales and listing data
Professional photography shoot of the property
A personal promotion of the property at the local MLS meeting
Creation of a custom, independent website and domain for the property
Exposure of listing on global MLS system and syndication to over 900 real estate websites
Advertising your home via email and direct mail campaigns, along with social media
Host OPEN HOUSES with light appetizers and beverages
MLS listing with 25 photos, a full property description to exemplify the selling points
Reverse Prospecting
Advertisement on Zillow, Realtor.com, Google
Video production
Weekly updates with details on marketing efforts
Pain Social Media Advertising on Facebook and Instagram
3D Matterport Virtual Home Tour
Targeted marketing
Out-of-State Concierge Service
1
GOLD PACKAGE
5.5% Commission
Everything in the Silver Package
International market reach-global exposure via Proxio, the international MLS
HD Video Production with drone footage
Provide and distribute 200 "Coming Soon" and "Just Listed" to our leased property database
"Noisy Neighbor" Gold Tier Open House with Food Truck
"Gold Tier" Paid Social Media Advertising
Social Media Contest and Trivia Promotion
LUXVT Marketing Option
Out-of-State Concierge Service
2
PLATINUM PACKAGE
6% Commission
Everything in Silver Package
Everything in Gold Package
Sellers' Home Warranty Coverage for the duration of the listing
"Noisy Neighbor" Platinum Tier Open House with Live Music, Food and Entertainment
Provide and distribute 500 "Coming Soon" and "Just Listed" to our leased property database
Exclusive advertising on Juwai.com
Complimentary Home Inspection Report
Complimentary Smoke/Carbon Monoxide Detector Installation
Water Heater Bracing
$500 towards repairs if requested by the buyer
Out-of-State Concierge Service
3