When buying or selling a home in Los Angeles, one of the first questions many people ask is, “How much commission does a realtor take?” It’s an important factor to consider, especially in a competitive market like LA where property values can vary widely. Understanding how realtor commission works helps you make smarter decisions—whether you’re a buyer, seller, or even a first-time homeowner.
In this blog, we’ll break down what real estate commission is, how it’s structured in Los Angeles, what you can expect to pay, and how to make the most of your experience with a trusted Realtor in Los Angeles.
What Is Real Estate Commission?
Real estate commission is the fee paid to real estate agents or brokers for helping buy or sell a property. This fee is usually calculated as a percentage of the property’s final sale price.
Most people don’t pay this fee directly out of pocket rather, it comes out of the sale proceeds. That means if you’re selling a home, the commission is typically deducted from your final check at closing.
Who Pays the Commission?
In almost all real estate transactions, the seller pays the commission. This commission is then split between the buyer’s agent and the seller’s agent. While this might seem like a burden for the seller, the presence of both agents often leads to a smoother, quicker transaction and sometimes even a higher sale price.
How Much Commission Does a Realtor Take in Los Angeles?
The average real estate commission in Los Angeles is around 5% to 6% of the home’s sale price. This is usually split evenly between the listing agent (the seller’s agent) and the buyer’s agent. So, if the total commission is 6%, each agent typically gets 3%.
Let’s look at an example:
- Sale price of the home: $1,000,000 approx
- Total commission at 6%: $60,000 approx
- Split between agents: $30,000 to the listing agent, $30,000 to the buyer’s agent
It’s important to note that this money is also shared with the real estate brokers they work under. Agents typically take home only a portion of that amount after brokerage fees, marketing costs, and taxes.
Read More: How Realtors Help Real Estate Investors in Los Angeles
Is Realtor Commission in LA Negotiable?
Yes! Realtor commissions are not set in stone. While 5–6% is common, commission rates are always negotiable. Some experienced agents may charge a higher fee due to the quality of service they provide, while others may agree to a lower rate based on the scope of work, type of property, or market conditions.
It’s okay to have an open conversation with your real estate agent in Los Angeles about commission before signing any agreements. Ask what services are included, and don’t be afraid to shop around for the best fit.
Why Do Realtors Charge That Much?
At first glance, 5–6% may seem like a lot. But keep in mind that real estate agents handle a wide range of tasks, such as:
- Pricing the home accurately
- Creating a marketing plan
- Listing the home on MLS and online platforms
- Hosting open houses
- Handling paperwork and negotiations
- Coordinating with inspectors, appraisers, and escrow
A skilled Realtor in Los Angeles brings deep market knowledge, professional networks, and negotiation power to the table. This can make a major difference in how quickly a property sells and how much it sells for.
What Do Sellers Get for the Commission?
Here’s what you should expect from a full-service listing agent:
- Pricing Expertise: They’ll analyze recent sales and the current market to price your home right.
- Staging Advice: Many agents help stage homes or provide guidance to make the home more appealing.
- Marketing: High-quality photos, video tours, social media posts, email campaigns, and more.
- Negotiation: They’ll work to get you the best price and terms.
- Transaction Management: From offer to closing, your agent handles the paperwork and deadlines.
This is especially helpful in a competitive city like Los Angeles, where homes need to stand out to attract qualified buyers.
Do Buyers Pay Realtor Commission?
Typically, buyers do not directly pay their agent’s commission. The seller covers both sides. However, the cost is essentially built into the home price, so in an indirect way, buyers do pay.
Working with a realtor near me or a real estate agent in Los Angeles is highly recommended, even if you’re a buyer because:
- They can help you find homes that fit your needs and budget
- They’ll schedule viewings and advise you on neighborhood trends
- They’ll help you write a strong offer
- They handle negotiations and protect your interests throughout the process
Also Read: How Do I Find the Best Local Realtor?
What Happens If There’s No Agent?
Some homeowners try to sell without an agent to save on commission. This is called FSBO – For Sale By Owner. However, FSBO listings often face challenges:
- Lower visibility and fewer buyer inquiries
- Incorrect pricing
- Complicated paperwork
- Weaker negotiation outcomes
While it may seem like a good way to save money, most FSBO sellers end up hiring a realtor or accepting a lower price than they might have with professional representation.
How to Find the Best Realtor in Los Angeles
Choosing the right agent can have a huge impact on your real estate journey. Here’s how to find the best Realtor in Los Angeles:
- Check Experience: Look for someone with a proven track record in your area or property type.
- Read Reviews: Look at Google, Zillow, or Yelp to see what past clients are saying.
- Ask for a Marketing Plan: Make sure they have a strategy to promote your home or find you one.
- Interview Multiple Agents: Don’t be afraid to ask questions and compare.
- Check Their License: Confirm their credentials and if they’re a member of the National Association of REALTORS®.
Need a recommendation? You can explore trusted real estate professionals like Sharlot Arabshahi, a top-rated Realtor in Los Angeles known for results, honesty, and care.
Are There Flat-Fee or Discount Brokers in LA?
Yes, flat-fee listing services and discount brokers do exist in the Los Angeles area. These models offer limited services at a reduced commission, sometimes as low as 1% to 2%.
However, the trade-off is usually:
- Fewer services
- Less marketing
- Reduced negotiation support
If you’re comfortable handling much of the process yourself, this may be an option. But for most people, a full-service agent is worth the cost especially in a complex market like LA.
Final Thoughts: Is the Commission Worth It?
In most cases, yes.
A knowledgeable Realtor in Los Angeles can help you:
- Get more for your home
- Avoid costly mistakes
- Reduce the stress of buying or selling
Think of the commission not just as a fee, but as an investment in expertise, protection, and results. And remember it’s always okay to ask questions, negotiate, and understand exactly what you’re paying for.
Summary: Realtor Commission in Los Angeles
| Factor | Typical in LA |
|---|---|
| Average Commission Rate | 5%–6% |
| Who Pays It | Seller |
| Split Between Agents | 50/50 usually |
| Negotiable? | Yes |
| Do Buyers Pay Directly? | No |
| Flat-Fee Options? | Yes, but limited service |
If you’re planning to buy or sell a home soon, don’t hesitate to reach out to a qualified Realtor in Los Angeles like Sharlot Arabshahi. The right agent can make all the difference in a smooth, successful transaction.
