Commission Rates Explained – Simple Guide for Buyers & Sellers

If you’re looking at a house, you’ll soon see a line item called “commission.” That’s the fee the agent earns for helping you buy or sell. Most people think it’s a mystery, but it’s really just a percentage of the sale price. Knowing how it’s calculated can save you money and avoid surprises at the closing table.

Typical Commission Structures

In the UK, most agents charge between 1% and 3% of the final price. The split is usually 50/50 between the seller’s and buyer’s agents, so each side gets half of the total. For a £250,000 home, a 2% total commission means £5,000 – £2,500 for each agent. Some agents work on a fixed fee instead of a percentage, especially for high‑value properties. Fixed fees can be cheaper, but they often come with fewer marketing services.

Commission can also vary by property type. Flats in busy city areas often have higher rates because they sell faster, while rural houses might have lower rates due to longer marketing time. Some agents offer reduced rates for first‑time buyers or for sellers who list multiple properties with the same firm.

How to Negotiate or Save on Fees

The good news is commission isn’t set in stone. You can ask for a lower percentage, especially if you’re comfortable handling some tasks yourself—like taking photos or doing open houses. If you have a solid price in mind, let the agent know you’ll only pay a reduced fee if they meet that price.

Another way to cut costs is to choose a hybrid or online agency. They usually charge a flat fee and let you manage viewings and paperwork online. While you lose some of the personal touch, the savings can be significant, especially on lower‑priced homes.

Finally, read the contract carefully. Some agreements include extra charges for advertising, paperwork, or early termination. Ask the agent to explain any additional costs before you sign, and see if you can bundle or remove services you don’t need.

Understanding commission rates helps you budget better and gives you leverage in negotiations. Whether you’re buying your first flat or selling a family home, keep an eye on the percentage, explore alternatives, and don’t be shy about asking for a better deal. The right approach can shave thousands off the total cost and make the whole process smoother for everyone involved.