What is a common percentage range for real estate commissions?

The common percentage range for real estate commissions typically falls between 4% to 6%. This range is widely accepted in the industry and reflects the standard practice for most residential real estate transactions. Commission rates can vary depending on several factors, including the market conditions, the type of property, and the specific agreements made between the seller and the real estate agent. In many cases, a 6% commission is common, with the total amount usually split between the listing and buyer's agents.

The lower percentages, often seen in options regarding 1% to 3%, are generally not standard for typical real estate transactions, as they would likely not cover the service levels expected by clients. The higher ranges, such as 7% to 9% or even 10% or more, are less common and can be viewed as excessive unless justified by extraordinary services or unique market conditions. Therefore, the 4% to 6% range accurately represents the average commission structure observed in the real estate market.