In California, selling your home comes at a cost. One of the costs that remains high, however, is beyond staging and repairs. California’s average real estate commission always tends to shock sellers, especially the first one. If you know how everything works, you will prepare better and not get shocked at the last moment.
Commissions affect your final profit. Having the information is empowering.
How Much is the Average Commission in California?
Typically, the average real estate commission in California is 5% to 6% of a home sale. This amount is typically divided between both the listing agent and the buyer’s agent.
A 5% commission on an $800,000 home is $40,000. That’s real money out of the deal.
How is the Commission Split?
Many people think the agent has the entire amount. That’s not how it works.
The commission is frequently split in such a way:
- About half of that is paid to the buyers’ agent
- The remaining goes to the agent representing the seller
- The agents then share with their brokerage
This partition is at the core of why commissions exist but it should not imply they are immutable.
Who Unties Real Estate commissions by Law?
No. The average commission in California, or in any state, is not a law nor a mandatory fee. It’s negotiable. If you are a seller, muscle the willingness not to believe it and take the first number thrown out there.
Agents might change those fees based on:
- Property value
- Market conditions
- Level of service offered
Everything is up for discussion.
The High California Commission: Why It Is
The state’s median residential price is above the national average. It’s a small number but it adds up fast. There are tons of paperwork, disclosures, and regulations to adhere to.
However, that does not equate to more work for higher prices. This is why some sellers ask themselves does the average real estate commission in California apply to every sale?
Can You Pay Less?
Yes, but with trade offs. Others hire a discount broker or services model. Some negotiate directly with conventional agents.
Here are some methods sellers use to cut costs:
- Negotiating commission rates
- Using flat-fee services
- Selling without an agent
So, like all things in life, each has its benefits and potential for harm.
See also: Owning a Caravan Park: Your Path to a Profitable Lifestyle Business
Before You Sign, What You Need to Ask
Prior to accepting any commission, ask straightforward questions:
- What services are included?
- Is the rate negotiable?
- What is the plan for marketing the home?
Clarity upfront prevents regret later.
Final Thoughts
California’s average real estate commission is high, but not out of reach. The buyer sellers who know about commissions are smarter at negotiation and protecting their profit.
Knowledge doesn’t just save money. It gives you leverage.
