How Does Realtor Commission in CA work?

Realtor Commission in CA

If you’re a home buyer in California, you won’t directly be paying for real estate commission in CA. Instead, the seller will pay the listing agent a total commission and that amount will be split between both agents. However to cover those costs will more than likely come from the sales price paid for the home, as many sellers look at what they are netting for their home.

Total Commission For Home Sellers in CA

Total commission means the total amount paid in commissions at the close of escrow. Agent commission in California should not be paid upfront, nor should a seller have to pay a huge fee along with a percentage to get listed on the MLS. This total commission is split between the buyer’s broker and the listing broker.

So if you pay 6%, which is a common percentage for realtors, then the commission should be split 3% per side. However, as a real estate agent, I usually see 2.5% Commission for the buyer’s agent and 3.5% for the listing agent.

Can you negotiate realtor commission in CA?

Absolutely! Located in Southern California and serving all counties, I offer my home owners the discount commission rate of 4% Total Commission. This means the listing fee is 2% and the buyer’s agent gets 2%. Home sellers still get the full service they deserve for their home without the high commissions.

Of course there are many companies out there that offer different programs. Not all the discount programs are full service or list on the MLS. Some even charge a few thousand dollars before listing your home. So make sure you do your research before listing your home.

Commissions Are Paid At The Close Of Escrow

Whether you paid 6% commission or negotiated realtor commission down to 4% total commission, realtor commission in CA are paid at the close of escrow. When everything is closed and done, the commission will be apart of the net sheet/closing costs the seller will sign off on before escrow is closed.

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