What is the Average Real Estate Commission in Georgia?

Buying and selling a house usually involves several costs, and the state of Georgia is no exception. Some…

Buying and selling a house usually involves several costs, and the state of Georgia is no exception. Some expenses involved in buying a home include a down payment, a mortgage, and insurance. If you sell a house in Georgia, you might pay for a presale inspection, escrow fees, and HOA dues, among others. While all these costs are vital, property buyers and sellers must be wary of one price: real estate commissions.

At 3 Options Realty, we have an experienced team of property managers ready to help you navigate the industry for a successful purchase or sale. We work with you throughout the process, eliminating the risk of infringements that result in hefty fines or, worse, legal action.

Average Realtor Commission Rate in Georgia

According to recent National Association of Realtors research, nearly 90% of home sellers use a property management company and real estate agent to help them sell their property. Although realtors and property managers play different roles, they offer critical services to aid in the sale or purchase of a home. Many realtors charge clients by flat commission depending on the house’s sale price and brokerage.

However, they might charge more than a reflection of the high-end market, experience level, specialized clientele, and brokerage model. The average national real estate commission rate is 5.4%, meaning if a house sells for $400,000, the seller will pay $21,600.

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The commission rate in Georgia is slightly higher than the national average at 5.8%. It is vital to note that this includes the buyer and listing agent fees. This may seem okay when the average home price is around $200K, but as the median home value nears $400K in Georgia, the number of low-interest real estate agents increases.

Tech-enabled discount agents allow prospective sellers to list their homes for as low as 1% without compromising service or results. As most homebuyers opt for online solutions, sellers question the importance of hiring an expensive listing agent.

How Real Estate Agents in Georgia Get Paid

Since many realtors work for a brokerage, they must pay the broker for insurance, support, contract guidance, and tech. Some brokers will charge a flat monthly fee or a flat fee per sale, but the majority charge a 5-30% commission on the total earnings. As mentioned, the real estate commission in Georgia is higher than the national average. Still, the real estate market in Georgia is thriving and isn’t lacking in top neighborhoods and cities.

Realtors in Georgia and most parts of the country offer essential services for a 6% commission. These services include listing homes on local MLS (multiple listing services), pre-listing pricing evaluation, professional photography, contract negotiation, a lockbox, and a yard sign. You can forego most of these costs by choosing an agent charging 1% to sell or offering incentives when you purchase a home.

If you are a prospective seller or buyer, you stand to benefit by hiring a reputable property management company to ensure everything is in tip-top condition. Contact us at 3 Options Realty and learn more about real estate and the costs involved. We guarantee exceptional property management services at pocket-friendly rates.