And BTW Rich:
When you said 50/50 I assumed you meant the buyer paid 50% of the commission and the seller the other half of the commission. If not please clarify - because I really have never heard of a "typical" situation of this sort.
In California - I sold a home where I agreed the listing agent would receive a commission of xx and the selling agent would receive xx.... as time went on - I agreed to up my xx to the selling agent as an incentive to bring more buyers to the property...
Georgia like any other state is regulated by the federal anti-trust laws; and you wont get any agent to speak in "typical" or "standard" terms where commission is concerned. It isn't really necessarily 50/50 across the board in the other states either. But hopefully we will get some clear feedback from the forthcoming postings to your inquiry.
However, from a buyers perspective - it's pretty much the same. The buyer can typically expect the seller to pay commissions as set forth in the initial listing contract or be advised otherwise once negotiations begin. Again, typically - this would be with a for sale by owner seller; or limited brokerage listing situation.
If a buyer has a strong interest in a property - he/she/they should establish who is paying the commission right up front. Sellers should also note that if they are not paying the commission - buyers could go looking elsewhere... just a little reminder for those thinking of going FSBO.
What states actually have a 50/50 split? I haven't heard of one.
Historically, real estate agents work on behalf of buyer prospects in the hope this will translate into the purchase of a property. And, that the Listing Broker has negotiated a commission that will fairly compensate the Selling (Buyer's) Broker for their time and expertise. (In Georgia, Brokers - not agents - are paid commissions.) All too often, these home tours do not result in a purchase and no commission is earned.
I believe I should be compensated for my time, expertise and gasoline (not to mention the daily email updates provided to prospects). It is our policy to collect a nominal retainer during the initial buyer consultation. This fee is earned at the time of the appointment and not dependent on an outcome outside of my control.
But since I'm not a real estate agent, I can answer that!!! Rich, the "typical" is dropping from about 6% to about 5%. This is the commission the seller pays and is split with the buyer's agent. However, that is a national figure and I don't know the local figure. Here is my post from another person's question about selling.
"You need to know what they put in the MLS for the co-broke. If they charge you 6% commission and only put 2% in the MLS as the co-broke, very few other agents will show your home. If they put 4% in as the co-broke, you are getting your listing agent for very cheap and should have more buyers agents showing your home than usual but probably less marketing dollars spent than usual. Don't just assume that if you list for 6% that the fee is split 50/50. Also, do NOT take their word for it that the "standard" commission is 6%. If they say that, make them show you all the listings in your area and in your price range. If it is anything like Oak Park, 16 listings had a co-broke of 2.5%-x, 2 listings had a co-broke of 2.5%, one listing had a co-broke of 3% and one listing that had been on the market for over a year had a co-broke of 2%."
Rich, as a buyer, if you want to your agent to show you that house that has been on the market for a year with only a 2% co-broke, you might have to pony up the additional .5%.
Please also keep in mind, commission might be 10% for lots or condos. When you meet with a Buyer's agent, they can explain all of this to you. Even if they are a buyer's agent that charges YOU to show the property, they will NOT charge you to find out the rules and fees. For the most part, as a buyer, this isn't something you need to worry about. Just make sure you know what your signing before you sign anything.
While overall commissions can vary widely, the buyer's agent will typically get 50% or more of the commission.
Feel free to contact me anytime.