What Is the Florida Real Estate Commission?

If you’re looking to purchase or sell a home in Florida, you’re certainly aware that there are several expenses to consider.

For example, if you’re purchasing a property in Florida, you’ll need to make a down payment before you can begin making monthly mortgage payments. You may also be required to get mortgage insurance once you have received your mortgage loan.

If you’re planning to sell your property in Florida, you should start making modifications or look into staging services. You may also be required to pay escrow costs, remaining HOA dues, and other expenses.

In this scenario, both sellers and buyers must be aware of one particularly significant cost: 100% commission Real Estate brokerage in Florida

How Do Florida Real Estate Agents Make Money?

According to the National Association of Realtors, 89 per cent of sellers engaged a real estate agent to help them sell their houses last year.

The great majority of those real estate agents also charged their customers on commission.

The real estate agent determines the amount charged to certain clients. They may charge more due to their degree of experience, the high-end market in which they work, or because they specialize in serving a particular specialized customer.

Covers both the buyer’s and seller’s agent commissions. So, if a property sells for $300,000 and the agents charge 5%, they will receive $15,000 at closing. The typical real estate commission in Florida, on the other hand, is roughly 5-6 per cent of the home’s price.

Again, some competent real estate brokers may be able to justify charging 6-7 per cent or more for their services, but this is becoming increasingly rare and normally occurs mainly with extremely high-end properties or huge estates.

Low-commission real estate brokers are also becoming more popular. With these agents, you may find choices such as listing your house for as little as 1% of the asking price without compromising results. We believe that most customers will move in this way during the next five to ten years. In other words, house sellers will no longer have to choose between paying 6% to sell their property or using an FSBO (for sale by owner) service.

SimpleShowing charges a 1% listing fee, which saves Florida house sellers around $7,500 in commission. We provide skilled, local real estate agents, quality photography, an MLS listing, negotiating assistance, paperwork management, and contract support. Continue reading to discover more about how Realtor commissions work and how various brokerages charge the seller. If you want to learn more, you can acquire a free online house appraisal by clicking here.

Real estate agents do not receive a 100 per cent commission.

In the above scenario, the agents may receive $15,000 at closing, but they may not keep the entire amount.

To begin, if the buyer uses a different agency, the commission is shared between the listing and the buyer’s agents. In the previous example, if the commission were divided in half, the seller’s agent would keep $7,500, and the buyer’s agent would receive $7,500.

Second, if the agent works for a brokerage – and most do – they must usually compensate the broker for their assistance. The amount they must pay back to the broker is normally determined by the brokerage and its special rates or fees. Those that sell more properties each year may be permitted to keep a bigger percentage of their commissions in some instances.

Some brokers charge their agents a flat fee per sale or a monthly flat fee. The majority, however, demand a commission, which can easily range from 30-60% of the agent’s profit on a transaction. So, while you may pay the agents 5% of the sale price, they may have to share that with the other agent and then split the remainder with their broker.

Florida’s Real Estate Commission

Now that you know how real estate brokers let’s talk about the types of commissions you may anticipate paying in Florida.

In Florida, the average real estate commission is roughly 5%. That is the lower end of the average that we indicated before, but keep in mind that the Florida real estate market is now very hot.

In Florida, it pays to engage an expert agent who can capitalize on these changes.

As previously stated, you may significantly lower your real estate commission in Florida by selecting an agent who only charges 1% to sell or looking for an agent that gives incentives when you buy, such as a Homebuyer Refund.

In Florida, who pays the commission for a real estate agent?

In certain Florida real estate deals, one agent will work for both the buyer and the seller. Other times, the homeowner may handle the sale of their home; however, “for-sale-by-owner” is becoming less popular.

However, in Florida, most sellers and purchasers have their real estate agents. Each agent is responsible for looking out for the best interests of their different clients while also working collaboratively toward the common objective of concluding the sale of the house.

You’re probably aware that a seller’s agent will charge their client a commission after selling the house.

However, many Florida homebuyers hear this and feel it implies they don’t have to pay their agent. Many agents even sell themselves by informing prospective clients that their services are free.

As it turns out, this isn’t quite correct.

Instead, it’s probably more correct to say that both the buyer and the seller end up paying the real estate brokers, albeit in a somewhat convoluted manner.

For a moment, put yourself in the shoes of the seller’s representative.

What would you do if you knew you had to share your commission with someone else before passing on another huge amount to your broker?

How to Reduce the Real Estate Commission in Florida

On the surface, the Florida real estate commission appears to be rather basic, but you now know that a lot is going on behind the scenes. Even though it may appear excessive, agents must charge at least 5% to make a livelihood.

Unless they don’t?

At SimpleShowing, we are pioneering a new method of assisting homeowners in saving a significant amount of money when using expert brokers to sell their houses. SimpleShowing now operates in Orlando, Tampa, Miami, Fort Lauderdale, Atlanta, and Dallas, TX. Request a free home valuation to get started.