Commissions- And who pays them?


How does the commission work in a typical real estate deal and who pays it?


In Georgia, the commissions in a transaction are traditionally paid by the seller and are based off of a percentage of the contract/sold price of the property. The percentage is negotiable with 5-7% being the most common statistically. The total commissions paid out at the end of the transaction is usually split equally between the listing agent’s broker and the buyer agent’s broker. The agents then receive their split (another percentage) from their respective broker. Example- $200,000 property sold at 6% commission- 3% goes to each broker ($6000) . 60-40 split between agent and broker- Agent receives a gross check for $3600 ($6000 X 60%). The agent/broker split can differ greatly depending on the broker’s structure and the amount of transactions/money that the agent brings in to the brokerage.