Most real estate agents in Georgia get paid through commissions. Commissions are typically calculated as a percentage of a property’s sale price, though some brokerages will charge a flat fee. The average agent commission rate nationwide is 5.8% of the home sale price, according to HomeLight’s real estate transaction data of thousands of home sales each year. But how does that compare to the average real estate commission rate in Georgia? In this post, we’ll help you determine how much commission you might pay on your Georgia home sale and what options are available to earn the highest proceeds possible. According to top Georgia agent Madalyn Suits, who has 26 years of experience, you can expect to pay 6% in agent commissions when selling a home in The Peach State, with some variation based on location. On a property worth the current statewide median home sale price of $348,000, according to the Georgia Association of Realtors, that amounts to $20,880 in commission costs. Using an overall statewide average of 6%, here’s a breakdown of how much you might pay in real estate commissions based on what a home sells for in six of the largest cities in Georgia: HomeLight gathers agent commission data from cities throughout the U.S. To see if we have commission rates for your city, try our Agent Commissions Calculator. You might also be interested in our Home Value Estimator. Still curious about commission rates in Georgia? Here are the answers to common questions about real estate agent commissions: The commission is typically paid by the home seller, and the seller’s agent will then split the commission with the buyer’s agent. “It’s all gotten a little bit convoluted over the past couple of years, but I would say, typically, the commission is split between the listing agent and buyer’s agent,” Suits says. “What we have typically seen in Georgia is that the seller pays the commission, and the listing agent shares half of that with the buyer’s agent and or whoever brings the buyer. But on occasion, we’ve seen situations popping up when the listing agent will give whoever brings the buyer less.” The real estate commission will automatically be deducted from the sale proceeds at the time of closing. Until then, you won’t owe any money to the real estate agent. If you’re eager to find out how much you might make on your home sale after paying commissions and other closing costs, try our Net Proceeds Calculator. Although the seller pays the entire commission, the listing agent, who is representing the seller in a transaction, doesn’t keep it all. Part of their commission will go toward marketing your property with professional photography, open houses, offline marketing, and more. The commission is also typically split 50/50 with the buyer’s agent to compensate them for bringing a buyer to the sale and coordinating the buy side of the transaction. So, around 3% goes to the listing agent, and the other 3% goes to the buyer’s agent. Both the listing agent and the buyer’s agent will then share a percentage of their commission with their sponsoring broker. These split rates can vary; however, it’s common for the listing agent to give their broker anywhere from 30%-50% of their commission, depending on the agent’s level of experience, their market size, and brokerage agreement. The commission that’s paid by the seller will typically be split among each agent and the brokerages through which they hang their real estate license. Let’s say you sell your home for $200,000 with a 6% commission rate. You pay a commission of $12,000, and each agent has a 70/30 split agreement with their brokerage. Here’s how that might look: But after all the splits and marketing costs, Suits explains what percentage the listing agent might actually bring home. “Usually, the listing agent comes home with 1% of the original 3% commission, she says. “Generally, what happens is that 1% is spent on marketing and advertising, and then usually 1% is given to your office if you have staff and different things; this can depend on your brokerage,” says Suits. “Then the other 1% is usually what the agent is really putting in their pocket, and there are taxes and things out of that.” You can negotiate real estate agent commission rates, but don’t be surprised if your agent holds firm on how much they charge. A Consumer Federation of America report found that only 27% of agents are willing to negotiate the commission. One reason agents often don’t lower their rate is that it may reduce their ability to negotiate a higher sale price for the seller. An agent’s services often include photography and pricing analysis, so working with a lower-commission agent could also translate into a smaller marketing budget for your property, an inaccurate list price, fewer home promotions, and a lower likelihood of selling. “On the listing side, we have definitely seen that you get what you pay for. Generally, if [an agent has] discounted their commission upfront, they’re also gonna discount what they’re willing to do for you,” Suits says. “Are they still using their best photographer? Are they marketing the home? Are they willing to drag the listing out to get 20 offers versus getting three offers, or do they just want it done with it?” So, we’ve seen that on the listing side.” In her opinion, Suits believes agents who are discounting are likely also doing less business. “Which means they do not have a pulse on what is going on in the market right now. You are probably not getting your best expert. . . and again, I don’t want a surgeon that only does one or two surgeries. I want the surgeon who does a lot.” Exceptions can occur if you’ve already found a buyer. Let’s say you’re selling your Georgian Cottage-style home common in Georgia] home to a friend or have decided to sell to a family member, in that case, the agent would likely be willing to play the role of transaction coordinator and independent go-between for a reduced commission rate. Overall, commissions in Georgia are negotiable but do your research first. When asking an agent to lower their pay, you’re limiting the pool of agents willing to work with you. And the downsides to working with a low-commission agent can be steep. Without a top Georgia agent in your corner, you could dramatically undersell your home, have a rough selling experience, or fail to sell the home at all.What’s the average real estate commission in Georgia?
Georgia city
Median home price
Typical commission at 6%
Atlanta
$399,880
$23,993
Columbus
$211,335
$12,680
Augusta
$220,000
$13,200
Savannah
$317,725
$19,064
Athens
$362,670
$21,760
Sandy Springs
$639,960
$38,398
Who pays real estate commission fees?
When is the commission paid?
Does the agent get to keep the full commission?
How is the commission divided between agents?
Are Georgia commission rates negotiable?
If you’ve found your own buyer
