How Do Real Estate Commissions Work? originally appeared on usnews.com Update 02/06/25: This story was published at an earlier date and has been updated with new information.

How do real estate commissions work? Most real estate agents make their money from commissions. In the United States, there's generally an agent representing the seller and one representing the buyer.

Commissions usually total somewhere between 2.5 and 3 percent of the home’s purchase price, per agent — on a $500,000 transaction, 2.5 percent comes out to $12,500 and 3 percent comes to $15,000.

The extra work is a worthwhile price to pay for greater transparency, said Jennifer Johnson, who focuses on real estate transactions as an attorney at Flaster Greenberg PC in New Jersey.

Thanks to a federal lawsuit that was recently settled, the way real estate commissions work will change in July (pending court approval). If you’re looking to save some money, here’s what you ...

How do real estate commissions work? Most real estate agents make their money from commissions. In the United States, there's generally an agent representing the seller and one representing the buyer.

Real Estate Agent Commissions Are Changing. Here's How It'll Work August 19, 2024 • Patrick Clark ...

How to negotiate real estate commissions: 3 pro tips Once you understand exactly what you’re paying for, you will be in a better position to ask for a discount.