Real estate commissions in Florida: What to expect
A homeowner selling their property with the help of a real estate agent is typically on the hook for paying that agent’s commission. Similarly, the agent representing the homebuyer will also earn a commission on the sale. But how much are they paid — and by whom? Here’s a look at how much Realtor fees cost in the Sunshine State, and what’s generally included in Florida real estate commissions.
How much are Realtor fees in Florida?
In Florida, the total real estate commission (for both agents combined) averaged 5.37 percent in August, according to data from Clever Real Estate. The median price of a Florida home in the same month was $403,000, per Redfin. For a home sale of that price, a commission of 5.37 percent would amount to $21,641.
However, Clever data shows that the split between Florida agents is not exactly even — the listing agent (that’s the agent representing the seller) typically brings in 2.82 percent, while the buyer’s agent gets 2.55 percent. So if you sell your Florida home for the median price of $403,000 and are paying only your own agent, that would come to $11,365, and your buyer would owe their agent $10,277.
But the exact amount you’ll pay on a home sale in Florida may vary significantly by location, as median home prices fluctuate around the state. Here’s what buyers and sellers would pay in a few major cities, based on the above commission percentages:
| City | Median price | Total agent commission (5.37%) | Listing agent commission only (2.82%) | Buyer’s agent commission only (2.55%) |
|---|---|---|---|---|
| SOURCES: Redfin, Clever data as of August 2024 | ||||
| Miami | $600,000 | $32,220 | $16,920 | $15,300 |
| Jacksonville | $300,000 | $16,110 | $8,460 | $7,650 |
| Tampa | $445,000 | $23,897 | $12,549 | $11,348 |
What’s included in a real estate agent’s commission?
Whether you’re a buyer or a seller, a Realtor provides a variety of services over the course of the transaction.
When you’re selling a home, an agent’s services generally begin with researching comparable homes sold in your area in order to help you price your home competitively. During the initial stages of preparing your home to sell, your agent may connect you with a photographer to take listing photos and may also suggest a home staging professional to help the home look its best. During the marketing phase, your agent will prepare the official listing for your home, promote it on the local MLS as well as potentially on social media, and host open houses and private showings. He or she will also help assess offers and negotiate a final deal, including handling your closing paperwork.
When buying a home, on the other hand, your agent typically researches all homes for sale in your desired area that may fit your budget and lifestyle needs, accompanying you to see homes that interest you. When you’re ready to make an offer, your agent will prepare and submit the paperwork and handle negotiations. He or she may also help you find a home inspector and potentially even put you in touch with a mortgage broker or real estate attorney.
Who pays agent commissions in Florida?
For many years, commissions for both agents in a real estate transaction were paid by the seller, no matter what state the deal was taking place in. This meant the seller usually had to pony up somewhere between 5 and 6 percent of the home’s sale price, and the buyer paid their agent nothing. (At least not directly — the commission amount was often “baked into” a home’s asking price.)
A recent lawsuit settlement, however, means that buyers may now need to pay their own agent directly. Under the new rules, home sellers are not necessarily required to pay the commission for the buyer’s agent — though they still can if they choose to, as a way to sweeten the deal. Details will differ depending on the specific deal, but either way, if an agent is involved, there will be a commission fee to be paid.
Are Florida real estate agents worth it?
Agent commissions are a steep expense when considering the already costly nature of a real estate transaction. However, while a real estate agent is not required when buying or selling a home, having a professional by your side during such a complex financial transaction can have its benefits.
When you’re selling a home, there’s a great deal of work to be done, and going it alone (known as for sale by owner) means you will be the one doing it all, with no professional guidance. As a homebuyer, an agent can identify homes for sale within your budget — they will have access to listings you likely wouldn’t know about on your own — and negotiate the best deal possible with sellers. If you’re not comfortable with negotiations, this can be a significant benefit.
Saving on fees
Whether you’re buying or selling a Florida house, there are ways to keep your costs down. Consider these options:
- Negotiate the commission: Most things in real estate are negotiable, and that includes Realtor commissions. Try negotiating a lower fee with your agent — even a small amount can make a big difference, especially on higher-priced homes.
- Work with discount agents: Another way to cut costs on commissions is to try working with a discount agent. Companies like Redfin and Clever may charge a 1 or 1.5 percent rate instead of the traditional 2.5 or 3 percent.
- Sell on your own: Though the “for sale by owner” option involves a lot of work, you can always choose to sell a home without the help of a professional. This will save you a listing agent’s commission, but keep in mind that you might still need to pay the buyer’s agent.
- Sell to a cash-homebuyer: Working with companies that buy homes for cash in Florida can greatly reduce your out-of-pocket costs. You won’t pay any Realtor fees, nor will you have to pay to make any repairs or get your home sale-ready. These companies also close quickly, often in just a few weeks or less, and pay in cash. However, they typically pay less than full market value — meaning you’d get a lower price than you would with a traditional sale.
Find a Florida real estate agent
If you’re ready to sell your home in Florida, take the time to find the right local agent. Ask friends and family who have had a good real estate experience to provide a referral. It’s also a good idea to check out online reviews and take note of the names on yard signs in your area. Interview a few different candidates to find someone who you communicate well with and who understands your needs. With a financial transaction this significant, it’s important to find a professional who you can work with effectively to achieve your goals.
