California housing crisis affecting middle class the most: It's 'a broken system'

[pnwmom]

35. You think that's typical? It isn't. And most sales have split commissions between 2 agents,

and many have negotiated commissions. When the market is tight, the sellers negotiate to lower them.

Also, real estate agents (for the buyer and seller) usually can't keep their half (their 2.5 - 3%.) They have to share some with their brokerage.

https://www.zillow.com/advice-thread/What-is-the-going-real-estate-commission-rate-in-Seattle-WA/441737/

If you and your realtor decide that staging is beneficial for your sale (sometimes it's not achievable if you or tenants are living at the property during the sale), it is an expensive item that should be considered in the calculation for commission rate. For example, a 4.75% commission rate on a $1million home without staging services isn't really a "saving" if you compare that to a 5% commission rate that includes staging services presuming the staging services cost $2000/month. Most experienced real estate agents have connections with stagers who offer their services at a discount, so it can be a win-win situation if your real estate agent includes staging services in the overall commission rate.

Another complexity relating to real estate commission is that most if not all real estate agents must share a percentage of their earnings with their brokerages. Some agents have to share a large portion and others a small portion (or none if they own their own firm), thus some are in a better position to negotiate than others. One key fact – most real estate agents are a lot more willing to lower their commission rate if you're going to use them for your next home purchase. If you're an investor or own multiple properties, an agent is also more likely to lower his/her commission rate because of potential repeat business.