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Boston Real Estate Commissions Revealed

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Boston Real Estate Commissions Revealed

If you are paying 6% in real estate commissions you may be paying too much. Commissions are always negotiable. There is no set rate and it is a violation of anti-trust laws for agents or brokers to discuss commissions outside of their own company. In other words, we can not compare our rates or agree to all charge the same amount.

If you do some research you will notice that there aren’t any price lists out there. Most of us will negotiate and as a result, our rates may not be the same across the board.

The reason why real estate agents charge a percentage of the sale price of the home is because even 6% sounds better than 18 or 40 thousand dollars.

Boston condo for sale agents will say that you get what you pay for. I haven’t found that to be true. New agents tend to charge as much as experienced agents. Experience really matters. New agents rarely have a clue as to what it is they don’t know.

Negotiate with your real estate agent. If the agent will not negotiate go ahead and assume that they don’t know how to and hire someone who will negotiate.

Also, keep in mind that real estate agents are usually independent contractors who do not make any money until they sell a house and that sale closes.

I have used the fact that many homeowners believe that there is a going rate to my advantage. The rate is often more than I plan to charge and it enables me to start negotiating at a higher level.

Most real estate agents I know do work hard but many make it sound as though they are doing God’s work and selling real estate is the hardest and most important job there is.

It is important to keep our perspective.

Where is Ford Realty Located?

Ford Realty is located in 137 Charles Street in Beacon Hill

Ford Realty Seaport Condos – Condo for Sale Office

Boston condos for sale - Ford Realty Inc

Boston condos for sale – Ford Realty Inc

Updated: Boston Condos for Sale Blog 2024



Boston Real Estate Commissions Revealed

Thinking of selling your home? The average real estate commission in the U.S. in 2021 is just under 5%. Most of the time this commission includes both the seller’s and buyer’s agent costs combined and paid by the homeowner. All real estate commissions in the U.S. are fully negotiable.

Valid real estate commission information is hard to come by. There is only one legitimate research firm that reports on commission rates across the country, Real Trends. Also Realogy, the largest corporate group of various Realty brands in the U.S., occasionally publishes nationwide real estate commission reports. Other articles you will find online about real estate commission rates are conducted by biased real estate websites conducting their own surveys, but they do not provide any of the data or criteria they used, nor is their information verified by an independent party.

Realogy is a publically traded company and so their reports have a lot of accountability behind them. Recent Realogy reports have more or less confirmed Real Trends research. From Realogy, “As of December 31, 2019, approximately 710 company owned brokerage offices and approximately 52,200 independent sales agents working with these company owned offices.” They report that their average commission per side was 2.41%, which would typically equal a 4.82% commission rate for the seller.

While the average national real estate commission rate in 2021 is 4.94%, commission averages vary from state to state and even within geographic boundaries inside the same state. One rule of thumb for local commission averages is that they will be lower in large metro areas with higher real estate prices and higher in rural areas with lower prices or a smaller inventory pool.

Average Real Estate Commission in 2021

What is the average Boston real estate commission in 2021?

For the first time, the average real estate commission is under 5% at 4.94% in 2021.

Can Boston real estate commissions be negotiable?

Yes, Boston real estate commissions are negotiable

Have Boston real estate commissions been declining in the last 10 years?

Yes Boston real estate commissions have been declining in the last 10 years

Does Ford Realty Inc have discount real estate commission fees?

Yes, we only charge 2.5% for direct sales and 4% for a co-broke

average real estate commissions

All numbers are from Real Trends.

Boston Condos for Sale and the Bottom Line

List a downtown Boston condo for sale with Ford Realty and I’ll only charge a Boston real estate commission fee of 2.5% if we sell it directly or 4% if its a co-broker

Boston Condos for Sale



Boston Real Estate Commissions Revealed

Boston Real Estate Commissions: Updated Summer 2020

Boston’s real estate commission stats are hard to come by. One of my goals as a real estate agent in downtown Boston is to educate the public and provide transparency within the real estate industry on a number of topics – including commissions. Most of the information you can find online is dated or summary in nature, many without proper references.

Realogy Real Estate Data

Realogy Brokerage Group has, “As of December 31, 2019, approximately 710 company-owned brokerage offices and approximately 52,200 independent sales agents working with these company-owned offices.” They report that their average commission per side was 2.41%, which would equal a 4.82% commission rate for the seller (since the seller typically pays both sides of the commission and the buyer does not pay a commission). This is not perfect real estate commission sales data as Realogy is including a commission from home rentals (different rates, often lower than 5%) in the below total figures.

Our company owned real estate brokerage business derives revenue primarily from gross commission income received serving as the broker at the closing of real estate transactions. For the year ended December 31, 2019, our average homesale broker commission rate was 2.41% which represents the average commission rate earned on either the “buy” side or the “sell” side of a homesale transaction. Gross commission income is also earned on non-sale transactions such as home rentals.

The above information (two quotes) is coming from Realogy Holdings Corp. FORM 10-K for the fiscal year ending Dec. 31st, 2019.

Real Trends in the meanwhile is one of the only research firms in the country reporting on national real estate commission rates, and it is hit or miss to find their yearly report.

real estate commission average
All numbers are from Real Trends research company based in Colorado.
Chart made by

Real Estate Commissions Haven’t Changed Much in the Last 14 Years

With an average real estate commission rate of 5.02 in 2005 and 4.96 in 2019, there is almost no movement. It is really hard to suggest a trend with such a small difference over the last 14 years of reporting (a mere .06% difference).

6% Commissions are Unusual

While commission rates haven’t changed much in the last 14 years, they have changed a lot since the 1990s. 6% is not in the cards for most real estate agents, 5% is the new average commission rate.

How Will COVD-19 Impact Boston Real Estate Commissions

The above study was conducted before COV-19, thus no data so far on this, but once it’s published we ‘ll share it with you.


Orginal Real Estate Blog Post Oct 1, 2019

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