• Meredith Adhate

How Do Commissions Work?

Here's a quick little rundown of the commission process


- The commission is almost always paid for by the seller's side. It is not an additional cost paid by the buyer.



- The seller and the seller's agent pick whatever commission percentage they'd like before the home is listed. In CT, commissions tend to be between 5-6%. There is no set rule for what a commission has to be but most people stay in line with trends.



- Part of the commission goes to the seller's side and part goes to the buyer's side. They do not have to be equal (i.e. the seller's agent could take 2.5% and give the buyer's side 3%)



Here's an example!


Home closes for $300,000 and the seller set the commission at 5%, split evenly between the two sides so the seller's agent's side gets 2.5% ($7500) and the buyer's agent's side gets 2.5% ($7500).


- As a buyer, you basically do not need to concern yourself at all with the commission. It's a factor primarily for the seller, agents, and lawyers.



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