Jan 3, 2023
If you’re planning to sell a house in Florida, then you probably already know that there are several different costs involved.
You may also have to pay for prorated property taxes, title fees, remaining HOA dues, and more. But there’s one fee that tops them all. Realtor commissions in Florida cost home sellers about $24,000 on average and twice that much in the most expensive cities in the state.
Listing agents in Florida charge their seller clients roughly 2.75% on average. Note, this does not include the buyer agent commission that you’ll need to pay. The total real estate commission paid by the seller is typically 5.5% – 6% of the final sales price of the home.
The rate that home seller were charged depends on the real estate agent’s brokerage as well as their experience level. The geographic market they work in and the specific clientele also play a role. For example, you’ll often see lower listing commission rates of 2.25 or 2.5% in more expensives areas of South Florida, including places like Jupiter, Palm Beach or Coral Gables where home values are generally above $1M. Again, the 2.5% listing fee does not include buyer agent commission.
As mentioned, the total real estate commission in Florida is typically around 5.5% – 6% of the home’s price. This includes both the buyer agent commission and the listing agent. So, if a home sells for $500,000, you’ll likely be paying $25,000 – $30,000 in commissions at time of closing.
Many home sellers regret the amount of commission that they pay to their agent, which has led to many low-commission brokerages growing in popularity.
The average total real estate commission in Florida is right around 5.75%. That’s the lower end of the national average that we mentioned above, but keep in mind that Florida’s real estate market has been fairly hot for the last several years.
In the earlier example, the total commissions paid by seller was $25,000 at closing, but the listing agent is not actually keeping the entire $25,000.
The buyer typically hires their own agent, so the total commission is split between both the listing agent and the buyer’s agent. Using the earlier example, if the commission was split in half, the seller’s agent (listing agent) would keep $12,500 and the buyer’s agent would get $12,500.
On occasion, in rare cases one agent will work for both the buyer and the seller in Florida. This is referred to as “dual agency.” Other times, the homeowner may handle the sale of their house on their own, which would save them the listing agent fee but not the buyer agent fee.
In the vast majority of cases, sellers and buyers both have their own real estate agents in Florida. Each agent is tasked with looking out for their respective client’s best interests while also working together toward the common goal of finalizing the sale of the home.
The seller covers the bill for both agents, which is paid at the time of closing, but realistically, the buyer could have purchased the home on their own (without a buyer agent) and saved roughly 2.5 – 3% on the price of the home.
While technically the seller pays the real estate agent’s commission in Florida, the cost of the buyer agent is baked into the price that the homebuyer is paying for the home.
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SimpleShowing offers a 1% listing fee versus the typical 3% charged by most big brokerages. You’d still need to pay a 2.5 – 3% buyer agent commission, but in the end, you’d still save 2% (or about $9,000 on average) when selling in Florida.
The average agent in the US closes 7 home transactions per year, while the top 5% of agents in the US closes 23 home transactions per year.
If an average agent in a typical Florida market, where home values are $350,000 closes 7 deals per year and the commission rate is 3%, the agent will earn $58,800 (assuming an 80% broker split). A top 5% agent who closes 23 homes per year in the same market will earn $193,200. By using a real estate commission calculator, you can determine the exact annual income based on number of transactions closed in a given year.
While Realtors certainly deserve compensation for the work they do, keep in mind that you can often negotiate the commission rate with your agent or find ways to lower or offset the commission fees.
At SimpleShowing, we are pioneering a new way of helping homeowners save a lot of money when they hire experienced agents to sell their homes. SimpleShowing is currently operates in the Orlando, Tampa, Miami and several of the top cities in Florida.
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