Explaining the 6% Commission in California

It is an issue that sellers tend to get shocked about when they begin to sell their first home.

Who usually pays for real estate commissions in California?

That would be the seller most of the time. And to make matters worse, it would be a whopping 6% of the final sale price of the home.

This is a hard realization moment for most sellers.

But where does the 6% go?

There is a listing agent that the seller hires who would technically get paid the whole 6%. Then that listing agent shares or offers 3% to whoever can bring their own buyer (buyer's agent).

However, that listing agent has a boss who is a licensed California Broker and is in charge of the overall Agency. Then that usual buyer's agent has their own California Broker. The Broker has to pay for their overhead plus any assistants and coordinators that are needed to help that listing agent. And of course, the expensive commercial real estate space which houses their respective offices.

In short, real estate commissions in California are rarely less than 6%.

Unless, you can list under the California Flat Fee MLS method, where you can probably sell your home for 2% to 3% overall, instead of 6%.

Feel free to call our Broker for further explanation at (213) 234-7574.

Dr. Will Puente

Locally Licensed California Broker

(213) 234-7574