Video — Why Pay Real Estate Commissions?

Real estate transactions are complicated, and real estate agents are usually involved to ensure they are successful and legal. In many cases, there are 2 agents — one representing the buyers interests, one the sellers. In most cases, real estate agents are compensated with a percentage of the transaction, which links their payment to a successful job.

In most states, 6% has long been the common commission percentage. This is split — usually in half — when two agents are involved. Real estate commission rates are not set by the government, or by industry bodies. In most states, commissions are legally negotiable.

Keep in mind that point above - commission is linked to success. Think about the expertise and work you need them to do to understand how they earn the commission.