Over One-Quarter Of Recent Homebuyers Have No Idea How Much Their Agent Was Paid

With all the talk of agent commissions, Redfin’s analytics team decided to see just how much the average buyer knows when it comes to how much agents are paid. And it turns out, a decent portion of recent homebuyers had no idea how much their agent made in the sale.

According to a newly released report, nearly 20 percent of recent buyers have no idea who paid their agent and how the amount was determined. Some 28 percent have no idea how much their agent was even paid!

For would-be sellers, 39 percent think a 3 percent commission for a buyer’s agent seems “a little” or “very” high. But 36 percent of likely sellers said it seems “just about right” and 26 percent said it seems “a little” or “very” low. 

“Many Americans make the biggest purchase of their life without knowing precisely how the professional they hired to guide them through the transaction is getting paid,” said Redfin Chief Economist Daryl Fairweather. “Home sellers often have a candid conversation about fees with their agent before signing an agreement to work together. Buyers would benefit from doing the same. People feel awkward talking about money, but it’s important to understand what your agent is charging and have a discussion about whether you will need to ask the seller to cover your agent’s fee as part of your offer negotiation or pay for it out of pocket.”