What is the standard NC real estate commission?

The short answer is there is no standard real estate commission. That being said, every real estate firm, every agent, and every market have individual requirements, preferences, and expectations. 

Buying and selling homes are certainly one of the largest purchases most people will make in their lifetime. Understandably with all that money on the line, consumers want to know how much money they should expect to pay in the process, know where their money is going, and the opportunity to negotiate such amounts.

Regulated by the Federal Trade Commission, antitrust laws are in place and enforced to make sure that all industries, not just real estate, welcomes healthy competition among companies to discourage the creation of monopolies. 

Although I only represent myself, not my firm as a whole, I hope this article offers transparency and insight on how you can best understand and if preferred, negotiate individual real estate commissions with your agent involved in your transaction. 

So how do you find what your real estate agent charges?

Both prospective home buyers and sellers should ask the real estate agent that they are looking to work with these helpful questions: 

Homebuyers: 

• Who pays your commission?

• What commission amount does your firm request? 

• Does that commission amount vary on purchase type--like resell home, new construction, land, etc.?

• Are there any additional fees that your firm requires and how are those collected?

Home sellers: 

• Who pays your commission?
• What commission amount does your firm request?
• What listing services do you offer? Are those services included in your seller commission or do I need pay additional money for those services?
• Does that include the buyer's agent commission as well? if so, how is that split? 
• Is it required I pay the buyer's agent commission?
• What if I want to buy and sell with you? Does that change your requested seller commission?
• Are there any additional fees that your firm requires and how are those collected?

There's no one right answer for a real estate firm or agent to any of these questions. It really depends on your goals, needs, and preferences. Finding the right real estate agent should be more than numbers, in my opinion, but transparency is always good sign that they are a good fit for you.

Here's my responses in bold and blue to the same questions. 

Homebuyers: 

• Who pays your commission? 99% of time, my buyer's agent commission is offered and paid by the seller/builder/land owner. 

• What commission amount does your firm request? On my firm's buyer's agency agreements, my firm requests: 2.4%-3% for buyer's agent.
  • Here's what I promise my clients as their buyer's agent:

    • Loyalty

    • Integrity with Your Funds
    • Skilled Care
    • Confidentiality
    • Disclosure of Information

    • Obedience

      I also strive to offer concierge level service and the go above and beyond these duties for my clients. 

• Does that commission amount vary on purchase type--like resell home, new construction, land, etc.? Yes. 

• Are there any additional fees that your firm requires and how are those collected? Yes. My firm also requires a $195 transaction fee for administration fees to be paid by the buyer/seller at the time of closing. However, for Community Heroes (doctors, nurses, teachers etc.), I pay the transaction fee on both sides for you. See the Promotions tab for the latest information. 

 Home sellers: 

• Who pays your commission? Both my listing service commission and the buyer's agent commission is requested to be paid by the  home seller. 
• What commission amount does your firm request? My firm suggests 6% total, but I ultimately discuss this amount with my home sellers and it's their choice. Typically, my sellers offer buyer's agents 2.4-3% and me 3%-3.6%.
• What listing services do you offer? Are those services included in your seller commission or do I need pay additional money for those services? 
  • I include the offering listing services in my commission:
    • Staging
    • Professional Photography
    • Professional Floorplans (PDF and 3D tours)
    • Expert Pricing 
    • Comprehensive Digital Marketing Plan
    • Open Houses
    • In addition to all the skill, care, and due diligence to get you to dollar for your home. 
• Does that include the buyer's agent commission as well? if so, how is that split? Typically, my sellers offer buyer's agents 2.4-3% and me 3%-3.6%.
• Is it required I pay the buyer's agent commission? No. But homes sold by Opendoor where they charge sellers 6%-12% commission and do not offer buyer's agent commission at all sit on the market longer.

Likely for two reasons. First, because the homes are not marketed at all and second, because buyers are already paying a lot at closing and may feel overwhelmed with the prospect of needing to pay their buyer's agent their commission as well at closing. 

• What if I want to buy and sell with you? Does that change your requested seller commission? I offer a reduced commission to my sellers in this case of 5% total: 2.6% for me and 2.4% for the buyer's agent. I'd still offer all the same listing services. 
• Are there any additional fees that your firm requires and how are those collected? Yes. My firm requires a $195 transaction fee for administration fees to be paid by the buyer/seller at the time of closing.

However, for Community Heroes (doctors, nurses, teachers etc.), I pay the transaction fee on both sides for you. See the Promotions tab for the latest information. 

I believe in transparency for the amounts my firm and I request from our clients. If you have further questions or negotiation requests on my client commissions, I'm happy to discuss with you. Reach out to me, Abigail Merrill, at abigail@livingraleighdurham.com or 919-638-6399.