Almost every real estate transaction involves real estate commissions.
The following table shows typical commission rates of 32 countries in 2002 and 2015 for residential transactions, which were summarized by Wall street Journal. (See Source)
| Country | 2002(%) | 2015(%) | Notes |
|---|---|---|---|
| Argentina | 6 | 5 | 2002: 6% commission, half paid by the buyer, the other half by the seller; buyer’s agent not required 2015: 3%-4% paid by the buyer and 1%-2% paid by the seller |
| Australia | 2.5 | 2 | 2002: 5% commission on the first $18,000, 2.5% exceeding that 2015: 2% paid by the seller; buyer’s agent not typical |
| Belarus | 10.5 | 2 | 2002: 6%-15% commission, averaging around 10%. Public information is scarce. 2015: 1%-3% paid by the seller; buyer pays a fixed amount of $1,500 |
| Belgium | 3 | 3 | 2002: 3% commission paid by the seller 2015: No change |
| Brazil | 5 | 5 | 2002: 5% commission, possibly lower for more expensive homes 2015: No change. |
| Canada | 4.5 | 3 | 2002: 3%-6% commission 2015: 3% paid by seller, with some markets as high as 5% |
| China | 7.5 | 2 | 2002: No set regulations and standards for a real-estate transaction in China. Commission fees vary from 5% to 10%. 2015: 0%-0.5% paid by seller. Buyer pays 1%-3% |
| Denmark | 3 | 2 | 2002: 2%-4% commission. Buyer pays 25% of sale price transfer tax; advertising provided by real-estate agent. 2015: 1%-3% paid by the seller |
| Finland | 4 | 2 | 2002: Fees run to about 5% of the sale price on condos, and 3%-4% on single-family homes. More expensive homes have lower commission fees. The government collects a value added tax (22% of the selling price). 2015: 2% paid by the seller, up to 3% in some regions |
| France | N/A | 5 | 2002: Only 50% of property sold are listed with a real-estate agent; transactions are kept very private. About half of homes sold by the owner. 2015: Two-thirds of sellers use a real-estate agent with commissions ranging from 4%-6% paid by the seller. Buyers will compete to pay these fees when inventory is tight |
| Germany | 4.5 | 4 | 2002: Negotiable rate that ranges from 3%-6% 2015: 3%-6% typically split between seller and buyer; in some markets, the buyer covers the full commission |
| Greece | 4 | 4 | 2002: 4% commssion, split evenly between buyer and seller. 2015: No change |
| Hong Kong | 1 | 2 | 2002: One agent may deal with both the buyer and seller. However, both parties typically have separate lawyer representation. 2015: After introduction of buyer’s agent, 1% paid by seller and 1% paid by the buyer |
| Indonesia | 5 | 4 | 2002: 5% paid by either buyer or seller. A buyer’s broker is required for real-estate transactions. 2015: 3%-5% paid by the seller |
| Ireland | 1.75 | 1.5 | 2002: In cities 1.5%-2%, and small towns 2- 3%; also properties can be sold through an auction system. 2015: 1%-2% paid by the seller |
| Israel | 4 | 4 | 2002: 4% commission rate equally split between buyer and seller’s agents. 2015: 2% paid by seller, 2% paid by buyer |
| Italy | 5 | 5 | 2002: Paid by both buyer and seller: each party pays 2%-3%. 2015: 2%-3% paid by seller, 2%-3% paid by buyer |
| Jamaica | 5 | 5 | 2002: 5% paid by the seller 2015: No change |
| Japan | 3 | 6 | 2002: 3% paid by the seller 2015: 3% paid by the seller, 3% paid by buyer |
| Malaysia | 2 | 2 | 2002: 3% on the first $100,000, then 2% of the remaining sale amount 2015: 2%, split between buyer and seller, sometimes paid by one side |
| Mexico | 7.5 | 7.5 | 2002: 5%-10%. Large emphasis on Multiple Listing service. 2015: 5%-10% paid by seller, depending on region |
| Netherlands | 1.75 | 1.5 | 2002: 1.5%-2%. Broker represents either the buyer or the seller but not both. The seller pays the fees. 2015: 1%-2% paid by the seller; buyer’s agent infrequent but if used, paid by buyer |
| Norway | 2.5 | 1.75 | 2002: 2%-3%. Broker represents both parties in the transaction 2015: 1.5%-2% paid by the seller |
| Philippines | 5 | 4 | 2002: 5%. Broker represents either the buyer or the seller, not both. 2015: 3%-5% commission, split or paid in full by one side of transaction |
| Russia | 7.5 | 4 | 2002: For Sale by Owner (FSBO) listings are very common. Reliable market information is difficult to acquire. 2015: 3%-5% paid by the seller; typically no buyer’s agents |
| Singapore | 1.75 | 1.5 | 2002: For-sale-by-owner listings are rare. 2015: 1%-2% paid by the seller |
| Spain | 5 | 5 | 2002: Commission depends on the property location, averaging 5% of total estate price. 2015: 5% paid by the seller |
| Sweden | 5 | 1.5 | 2002: 5% paid by seller. Higher commission charged for lower-priced units 2015: 1%-2% paid by the seller |
| Thailand | 4 | 4 | 2002: 3%-5% 2015: No change |
| Trinidad & Tobago | 4 | 3 | 2002: 3%-5% 2015: 3% commission more common |
| United Kingdom | 1.5 | 1.5 | 2002: 1%-2% is typical; in very competitive areas 0.5%-0.75%; in low-priced areas as high as 3.5%. 2015: 1%-2% paid by the seller |
| United States | 6 | 5.5 | 2002: 6%-7%. Advertising commonly provided by real-estate broker/agent. 2015: 5%-6% paid by the seller |
As shown in the table above, most advanced countries with established agent relationships pay commissions ranging from 3% to a maximum of 10%.
It is reasonable to see the average 4~6%, and in most countries, the seller pays to seller's agent and shares about 50% of it with the buyer's agent. Where it is normal for buyers pay the buyers commision separately, it is about half of the above rates in most countries.
In general, the lower priced properties has higher commission while the higher priced properties tends to have lower commissions. In the case of 5-6%, this includes advertising expenses.
