Realtor Costs In America
from Self, October, 2023
Buying a home comes with a whole host of costs, from closing fees and down payments to initial mortgage payments and realtor fees; which form part of the final transaction for the home.
To understand just how much realtors fees are costing buyers on average, our study analyzed home price data from FRED [1] and research on commission rates from Real Trends [2] and Clever [3] to reveal how much realtors are making per transaction in America.
In order to gain an insight into the average realtor fee by state the analysis then studied state-level house price data from Zillow [4] and commission rate information from Clever [5].
Key Findings
The average home purchase in 2023 costs $26,493 in realtor fees, with the buyers and sellers paying $13,246.50 each as commission to their respective realtor(s).
On average realtors successfully help buy or sell 10 homes per year [6].
Realtors made an average of $15,361.65 more per home sale in 2023 than in 2000, however the commission rate has dropped from 5.42% in 2000 to 5.13% in 2023.
Hawaii is the most expensive state for realtor fees with a transaction costing $44,576 to the buyer and seller.
Realtors in Ohio have the highest commission rate at 5.81%, averaging $12,006 per transaction, with Georgia having the second highest commission rate (5.76%).
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