What is typically included in a real estate commission?

The typical structure of a real estate commission is based on a percentage of the sale price of the property. This practice is common because it aligns the interests of the agent with those of the seller; the agent is motivated to sell the property for a higher price to receive a larger commission. This percentage varies, but it is often negotiable and depends on the local market conditions and the specific agreement between the agent and the client.

In contrast to this common structure, flat-rate service fees generally do not reflect the percentage-based commission model, which is why they are not typically included in a standard real estate commission. Payments to multiple brokers complicate the commission structure and can occur in certain scenarios, such as with co-brokerage agreements, but they do not represent the standard practice of how commissions are typically structured. Lastly, a one-time registration fee for sellers is not part of the commission; it might be a separate administrative cost charged by some services, but it does not factor into the commission that agents earn from a successful sale.