Real Estate Commission:
Cost: 5% to 6% of Sale Price
Real estate commissions are the largest seller closing cost. Real Estate commissions are negotiable and range between 5%-6% of the sale price for full-service brokerages in Los Angeles. The commission is divided into two parts, half for the listing agent, and a half for the buyer’s agent. Sometimes sellers ask why they have to pay a double commission when they sell, but they forget that they did not pay a commission when they purchased. In Los Angeles commissions are back end loaded to make it easier for buyers to buy, if the buyer agent commission was moved to the buyer side, they wouldn’t be able to offer as much on the purchase price. I say it averages out to 1 commission per transaction.