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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: Preparing for Homeownership

By Louisiana REALTORS® • February 19, 2025
As previewed last week, NAR is pleased to share the latest consumer guide focused on preparing for homeownership. This guide covers what prospective buyers should consider as they kick off the home purchase process, including the importance of credit scores, mortgage pre-approval, down payments, budgeting, and educational resources. 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: Preparing for Homeownership Escrow and Earnest Money Pricing Your Home Preparing to Sell Your Home Fire Damage and Policy Coverage Thank you for your continued engagement with the “Consumer Guide” series and for sharing the resources with potential clients to ensure they have the information they need to be successful 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 taxes.

Consumer Guide Update: Escrow and Earnest Money

By Louisiana REALTORS® • February 14, 2025
As previewed last week, NAR is pleased to share the latest consumer guide focused on escrow. This guide covers what homebuyers should know about earnest money deposits, including the general terms and use cases in real estate transactions. 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: Escrow and Earnest Money Pricing Your Home Preparing to Sell Your Home Fire Damage and Policy Coverage Flood Insurance Thank you for your continued engagement 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 preparing prospective buyers for homeownership.

2026 LR Officer Elections, RVPs & NAR Director Applications

By Louisiana REALTORS® • February 12, 2025
The Louisiana REALTORS® Board of Directors will conduct several elections this Spring. Interested candidates that meet the qualification who are looking to serve at either the state association level or the national association level are encouraged to view the criteria and submit an application. An application that is not submitted on the appropriate form or not submitted pursuant to the instructions shall not be considered as submitted timely.
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