How does real estate commission work?

Real estate commissions work to offer compensation for the agents who represent the buyer or the seller in the selling of a home. The homeowner determines how their real estate agent can charge for commission in the listing contract. Over the last several decades, the agent commission structure has been around 6% of the sale price of the home. This is custom, not law. As an example, at TRELORA, we charge a flat fee of $3,000 in Colorado or $4,000 in Washinton to represent the buyer or the seller in a home transaction, regardless of the price of the home. We believe the way that real estate commission works has historically been for the benefit of the agent, not the homeowner.