Types

• Commissions are generally paid as a percentage, but can also be paid as a specified dollar amount. The seller usually pays the commission for the seller's agent and buyer's agent. The commission is usually divided equally between brokerages.
  
  

Considerations

• Brokerage commissions are generally determined by the real estate office, agency, or market region, says Mortgage News Daily. Neither the brokerage nor the real estate agent pockets the entire commission. In most cases, the agent gets a percentage of the commission based on a split negotiated with the brokerage.
  
  

Expert Advice

• "By law, commission must be negotiated. Otherwise it's known as price fixing," says CNN Money. Its experts advise getting three to four commission estimates from other agents and using a "laddered approach" to negotiate. Offer a bonus for selling at the target price, and lower the commission accordingly.