Selling Agent Commission

Definition

The percentage of the sale price paid to agents—traditionally 5-6% split between buyer's and seller's agents because that's what we've always done.

Example Usage

We agreed to list at 6% total commission, with 3% going to the selling agent.

Origin

Industry standard developed by NAR in early 20th century

Fun Fact

These commissions are negotiable but rarely are because it's considered uncouth to discuss money, unlike literally any other transaction.

Source: NAR Commission Standards

Related Terms

Beginner

MLS

Multiple Listing Service—a database where real estate agents share property listings and cooperate on sales. The original social network, except everyone's trying to sell you houses.

🏠 Real Estate

Intermediate

conservancy

An organization dedicated to preserving natural resources, land, or historical sites through acquisition, management, and protective agreements—basically wealthy nature lovers buying up property so developers can't turn it into strip malls. These groups use conservation easements, donations, and purchases to maintain ecosystems, wildlife habitats, and scenic areas. It's environmentalism with a real estate portfolio.

🏠 Real Estate

Intermediate

setback

The minimum required distance between a building and the property line or street, dictated by zoning laws. Your municipality's way of ensuring you can't build right up to the sidewalk.

🏠 Real Estate

Intermediate

prepayment penalty

A fee charged for paying off a mortgage early, compensating lenders for lost interest income. It's the bank's way of punishing you for financial responsibility and denying them years of interest payments.

🏠 Real Estate

Intermediate

absorption rate

The rate at which available homes are sold in a specific market during a given time period. Think of it as the speed at which the market 'eats' inventory—crucial for determining whether you're in for a feeding frenzy or a slow dining experience.

🏠 Real Estate

Advanced

seller carry-back

When the seller provides financing to the buyer instead of requiring a traditional mortgage, essentially becoming the bank. It's either a creative solution or a sign someone couldn't qualify for actual financing.

🏠 Real Estate

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