Real estate commissions in Georgia: What to expect

Real estate agents’ commissions are often one of the biggest transaction expenses for homebuyers and sellers. In the past, the model for commissions was that the seller covered the cost of both agents — their own and the buyer’s. Given that each agent typically earns 2.5 to 3 percent of the home’s sale price, the combined cost of these could be a huge expense: For example, 6 percent on a $400,000 house comes to a whopping $24,000.

However, a recent lawsuit settlement has changed the structure of real estate commissions, and buyers may now have to pay their own agents directly, which has the potential to raise costs for buyers (and save money for sellers). Here’s a closer look at Realtor fees in Georgia, and how much homebuyers and sellers can expect to pay.

How much are real estate commissions in Georgia?

Real estate commissions are typically charged as a percentage of the home sale price. Given the rising cost of homes in Georgia, the cost for agents has also gone up.

The average total cost of agent commissions in the Peach State is 5.62 percent, according to recent data from Clever Real Estate. That’s a bit higher than the national average of 5.32 percent. With the state’s median home-sale price at $376,600 as of September 2024, according to Redfin, that puts the total commission cost for a median-priced home at about $21,165. However, that’s the price for both agents combined. Clever’s data shows that of that total, the listing agent (representing the seller) typically gets 2.91 percent ($10.959), and the buyer’s agent typically gets 2.71 percent ($10, 206).

Keep in mind, too, that median home prices can vary widely from city to city. Here are what commissions would look like in a few Georgia cities, assuming the percentages above.

What’s included in a real estate agent’s commission?

While paying for a real estate agent can be a large expense on top of the other costs of buying a Georgia home, agents offer a lot of value for the money. They’re especially useful for first-time buyers, inexperienced sellers and anyone buying or selling in a competitive housing market.

Agents representing homebuyers typically help with everything from house-hunting to negotiating the best possible price and contract terms. This can include finding properties that fit your criteria and budget, setting up showings, sharing knowledge about the local housing market, helping you write up an offer, and guiding you through contract negotiations and closing paperwork.

Listing agents help sellers prepare their property for sale and set the right asking price. They list and market your property, schedule showings, host open houses and more, eventually sorting through buyer offers and contract negotiations, as well as guiding you through closing.

Who pays agent commissions in Georgia?

While agent commissions have always been around, the way they work changed in August 2024 as a result of a federal lawsuit. Previously, the commission fees for both agents were covered by the seller, often with the cost “baked into” the sale price. Now, sellers may choose whether or not they wish to be on the hook for their buyer’s agent’s fee. (Many will still agree to pay, in the interest of making their listing more appealing or speeding up the sale.) It all depends on how your contract is written, so make sure it clearly spells out which party pays for which commission, and how much.

Are Georgia real estate agents worth it?

You don’t have to use a real estate agent when you buy or sell a home in Georgia. However, while they will have to be paid for their efforts, they can be of great service to both parties. Real estate agents are licensed professionals who are experts in their local market, and their job is to help you navigate the process successfully — whether that means buying a home that suits your needs and budget, or selling your home to a qualified buyer for the best price possible. While you can save money by going without one, the expertise and guidance they provide is usually worth the price.

Saving on fees

Buyers and sellers looking to save money on their home transaction have a few different options to consider:

• Negotiate commissions: Agent fees aren’t set in stone. Many agents are willing to lower their commission rates at least a bit, especially on a higher-priced home. Negotiating even a small decrease could save you big money.
• Use a discount agent: Many agents and brokerages, such as Redfin and Clever, offer discounted commission fees as low as 1 or 1.5 percent (rather than the typical 2.5 or 3 percent). Some agents will also work for a pre-determined flat fee rather than a percentage of the home price.
• Sell by owner: A for sale by owner transaction means you sell without a listing agent, so you don’t pay an agent’s commission. However, this route takes a lot of time and energy, and you may still need to pay the buyer’s agent commission.
• Sell directly to a homebuying company: There are many companies that buy houses in Georgia. These businesses move quickly, pay in cash and do not require the use of an agent — they often cover all closing costs, too. However, you’re likely to get a lower price than you would through the traditional sale process.

Find a Georgia real estate agent

It’s important to work with a real estate agent you can trust. When you are looking for a Georgia real estate agent, start by talking to friends and family. They can often provide referrals to agents who they’ve used and liked. Reading online reviews and checking out yard signs in your area can also be useful. Don’t be afraid to meet with and interview multiple agents before deciding on one. For a transaction this important, it’s worth taking the time to find someone you work well with.