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According to a poll of FastExpert agents, the real estate commission in Idaho is 5.69%. This is slightly above the National average of 5.57%.
While 5% may feel like a small percentage, it has a big impact when discussing real estate transactions. For example, a 5% commission rate for a $500,000 house is $25,000.
Since almost 90% of people choose to work with a licensed real estate agent, it’s critical to understand what the Idaho real estate commission is and how it works.
What is the Idaho Real Estate Commission?
Real estate commission, also called realtor fees, is a percentage of the purchase price that is paid to the agents for their service. Agents typically do not receive a salary, and they are only paid when a sale is complete.
The seller pays the realtor fees.
While the fact that the seller pays the realtor fees may seem surprising, the cost is generally baked into the price of the home. Therefore, in a sense, the buyer also pays the realtor fees when completing the real estate transaction.
The Real Estate Agent Commission is Split
There are generally four parties involved in every real estate transaction: the listing agent, the listing agent’s brokerage, the buyer’s agent, and the buyer’s agent’s brokerage.
Let’s take a look at how this generally looks, and then we’ll break it down with a specific example for Idaho.
On a home that sells for $500K with a 6% real estate agent commission rate, the total realtor fees will be $30,000. This amount is usually divided in half and sent to each agent’s real estate broker, which each brokerage receiving $15K.
From there, the fees are then divided again, and the agents get paid. If the fees are split equally between the representing brokerages and each agent, then the listing agent’s brokerage, the listing agent, the buyer’s agent’s brokerage, and the buyer’s agent would each receive $7,500.
Commission rates and brokerage fees can vary based on the agent’s experience, the housing market, location, and a variety of other factors. While the sale of a $500K home may not play out exactly as outlined, this provides a basis for understanding the costs of each real estate transaction.
>>MORE: How Real Estate Agents Get Paid
Calculating the Commissions on an Average Idaho Home
According to Redfin data on Idaho, the median home value is $454K, and FastExpert data indicates an average commission rate of 5.69%.
Therefore, the total commission on the average Idaho home would be $25,832.
If the realtor fees are split equally, each brokerage will receive $12,916.
Now the brokerages must pay their agent.
If the listing agent’s brokerage splits the $12,916 commission equally, the brokerage and listing agent would each receive $6,458.
If the buyer’s agent’s brokerage splits the $12,916 commission equally, they also would each receive $6,458. However, if the buyer’s agent is more experienced, they may keep 70% of the commission. Therefore the buyer’s agent’s commission would be $9,041, and the brokerage would keep $3,875.
As a client, it’s important to have a general understanding of the realtor fees and what you’ll be required to pay. But likely, even more important, is choosing the right local agent who has your best interest at hand.
>>MORE: Finding local agents is easy with FastExpert
Average Income of an Idaho Real Estate Agent
The average income of an Idaho real estate agent is $97,000, which is the same as the National average, according to Indeed. Incomes can vary based on experience, number of homes sold, location, and the housing market. In Idaho, agents with less experience earn an average of $87,000, and agents with more than 10 years of experience earn an average of $115,000.
Highest Paying Cities for Idaho Real Estate Agents
- Boise – $125,114
- Eagle – $104,575
- Meridian – $96,293
- Pocatello – $91,404
- Nampa – $91,009
- Hailey – $90,893
- Arco – $90,805
- Twin Falls – $90,485
- Idaho Falls – $90,104
Real Estate Agents Work for You
Listing your home for sale or searching for a new home can be daunting tasks. There are many factors to consider, one of which is the real estate commission. However, working with a top real estate agent can turn daunting into a dream.
Top real estate agents work behind the scenes and advocate for your best outcome. If you are thinking of buying or selling a home, contact a FastExpert agent in Idaho today. We’ll help you through the process with ease so that you can concentrate on what matters.
Who Pays the Closing Costs in Idaho?
Closing costs are the fees paid at the closing of a real estate transaction. Each client has their own set of closing costs, which they can discuss with their mortgage broker prior to closing.
>>LEARN MORE: The Ultimate Guide to Closing Costs
Included in the closing costs is the commission for the real estate agents involved in the sale. In most cases, the seller pays the commissions for both their own agent and the buyer’s agent. The commission is then deducted from the proceeds of the sale.
What Are the Responsibilities of a Real Estate Agent in Idaho?
The Idaho Real Estate Commission sets forth the regulation on the duties and responsibilities of real estate agents in the state. These requirements are designed to protect both consumers and practitioners.
The duties of a real estate agent include, but are not limited to:
- Maintaining honesty and integrity in all dealings
- Acting in a manner that will preserve the confidence of the public
- Cooperating with other real estate professionals
- Following the rules and regulations of the Idaho Real Estate Commission
How to Find a Real Estate Agent in Idaho
FastExpert can help you find the perfect agent for your needs. Finding an agent in Idaho is easy with our agent directory. Simply enter your zip code, and we’ll provide you with a list of top-rated agents in your area.
You can then read agent reviews, view listings, and compare agent commission rates to find the best fit for you.
So, what are you waiting for? Get started today!