Understanding Your REALTOR’S® Commission

Louisiana REALTORS® • June 4, 2022

REALTORS® play a critical and helpful role in the home buying and home selling process. When you put your home on the market, you, your REALTOR®, and their broker agree to a price for their services in securing a ready, willing, and able buyer. This commission is a percentage of the final sale price of the home. While the services, resources, and expertise of a knowledgeable, professional REALTOR® are invaluable, it is also important to understand how their payment structure works. Let’s take a closer look real estate commission.


How are REALTOR® Commission Rates Set?

Local real estate markets set their own commission thresholds based on service levels, client preferences, and cost tolerance. The listing broker and their client agree on the commission rate for the sale, as well as the commission rate for the buyer’s brokerage. Commissions tend to fluctuate over time based on market trends.


Can a REALTOR’S® Commission be Negotiated?

It is important to know that the commission rate is always negotiable. There is no set minimum or maximum, and this rate can be renegotiated at any time during the transaction. Typically, a commission rate for both the selling and buying brokers is established at the beginning of an agreement. However, this can be revisited based on different circumstances and scenarios.


Are There Different Commission Models for REALTORS®?

Depending on the specifics of your transaction, along with your wants and needs, there are different service levels and expectations that can be negotiated, along with corresponding compensation structures. From a full-service model that allows for commission rate negotiation to a reduced service/discounted fee approach with more flexible offerings, there is a compensation agreement that can be determined for your needs.


REALTORS® are bound by the NAR’s Code of Ethics which always places a priority on their client’s best interests. This level of service is what separates REALTORS® from other real estate agents. Understanding how their compensation is determined, as well as your options as a seller, can make your next partnership and transaction a smooth one.

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Consumer Guide Update: Buying Land and Building a New Home

By Louisiana REALTORS® • April 17, 2025
As previewed last week, NAR is pleased to share the latest consumer guide focused on buying land and building a new home. This guide covers how to find land for sale, explains construction loans, and weighs the pros and cons of building a custom home. As a reminder, all guides in this series are available for download—in both English and Spanish—on facts.realtor . Please allow a few days for the Spanish version of the latest resource to be translated and uploaded. For ease of reference, below is a list of the most recent guides: NEW: Buying Land and Building a New Home Deeds and Titles Alternative Listing Options Navigating Multiple Offers Homeowners Associations Thank you for continuing to engage with the “Consumer Guide” series and for sharing the resources with prospective clients to ensure they have the information they need to find success in their homebuying or selling journey. Remember that these guides are for informational purposes only and are not meant to enact or change any existing NAR policy. Be on the lookout for next week’s guide on Wednesday, which will cover property title theft.
5 Negotiation Secrets Smart Buyers Use to Get Better Deals

5 Negotiation Secrets Smart Buyers Use to Get Better Deals—And How a REALTOR® Can Help

By Louisiana REALTORS® • April 16, 2025
Negotiating a real estate deal can be overwhelming, especially for buyers who don’t have experience with the process. Here are five key negotiation strategies smart buyers use—and how working with a REALTOR® provides a competitive edge.

Consumer Guide Update: Deeds and Titles

By Louisiana REALTORS® • April 11, 2025
As previewed last week, NAR is pleased to share the latest consumer guide focused on deeds and titles. This guide covers the difference between a deed and a title, common types of deeds, and title searches and insurance. As a reminder, all guides in this series are available for download—in both English and Spanish—on facts.realtor . Please allow a few days for the Spanish version of the latest resource to be translated and uploaded. For ease of reference, below is a list of the most recent guides: NEW: Deeds and Titles Alternative Listing Options Navigating Multiple Offers Homeowners Associations Marketing Your Home Thank you for continuing to engage with the “Consumer Guide” series and for sharing the resources with prospective clients to ensure they have the information they need to find success in their homebuying or selling journey. Remember that these guides are for informational purposes only and are not meant to enact or change any existing NAR policy. Be on the lookout for next week’s guide on Wednesday, which will cover buying land / constructing a new home.
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