What is the Commission for Real Estate Agents in Florida?

The beloved Sunshine State has no shortage of gorgeous homes and estates. It can be a lucrative place to start your real estate career, but how much commission can you make? The reality is that it depends on several factors.

Here's a closer look at how real estate commissions work in Florida, how much you can potentially earn, and how to get started.

How Much Commission Do Florida Real Estate Agents Make?

According to a survey of Florida agents, the average total commission for real estate agents in Florida is about 5.37% of the sale price, which is slightly below the national average of 5.49%. Considering the median Florida home price is around $420,000, the total real estate commission for a typical deal would be $22,500.

While this is how much the average seller pays in real estate agent fees, buyer's agents and listing agents don't walk away with that much from each deal. There are several reasons why.

First, the commission is always negotiable, so the seller can (and will!) try to get a lower rate. And second, the commission in a Florida real estate sale is typically split several ways — meaning you won't get it all for yourself.

Another thing to consider: A federal lawsuit recently changed how real estate agents are paid. In October 2023, several large brokerages were forced to pay $418 million in damages for conspiring to inflate real estate commissions and change several long-standing rules put into place. For example, home sellers will no longer have to pay both agents as of August 2024. That could have a large impact on commissions.

How Much of the Total Commission Does the Real Estate Agent Get?

Commission checks are cut to each brokerage at closing: the one that represents the buyer and the one that represents the seller, typically 50/50. Then, the brokerages each pay a cut to the agents based on pre-arranged fee splits.

In Florida, real estate agents must be supervised by a licensed Florida broker. And the supervising broker will always get a cut of the commissions for the homes that agents sell. A 50/50 split is common for newer agents, but you might negotiate a 60/40 split to help you keep more of the money you earn.

To recap, the commission is typically split among four people: the listing agent, the listing agent's broker, the buyer’s agent, and the buyer's agent broker.

However, this could change. That court case we talked about earlier? It could result in real estate commissions falling by 25% to 50% in the coming years.

Florida Real Estate Agent Commission Example

Let's look at an example to see how this works in practice.

Using the 5.37% average commission rate, the total payout on a $420,000 sale would be around $22,500 — this is the total amount of commissions. Now, let’s assume you’re the buyer’s agent, and you have a 60/40 split with your broker. We’ll also assume the listing agent has a 60/40 split with their broker. (Which is typical.)

First, the listing brokerage and buyer’s brokerage split the commission 50/50. Both sides get $11,250. Then, the listing agent's broker and the listing agent split their share 60/40. And, you (as the buyer’s agent) and your broker split your share 60/40.

The commission payouts would be as follows:

• Listing agent's broker (40%): $4,500

• Listing agent (60%): $6,750

• Buying agent's broker (40%): $ 4,500

• Buyer's agent (60%): $6,750

How Discount Brokerages are Mixing Things Up

Discount brokerages (like Clever Real Estate, Redfin, or SimpleShowing) are offering to list homes for commission rates as low as 1%. This sounds like great news for sellers: they can list their homes for a fraction of the cost!

But there are several problems with discount brokerages:

• Agents aren’t willing to do much work for such low fees. So, the listing agent might put the home in the MLS, but they’re not going to invest their time, money, or effort in marketing the home.

• Buyers’ agents aren’t incentivized to show the property to their buyers. Of course, the buyer’s needs come first, but if you can find them an ideal home with a reasonable commission split for you, you’re more likely to be excited about showing them that home compared to one where you’ll get little-to-no commission.

• Even if the discount brokerage successfully sells the home, it probably won’t be for top dollar because none of the agents were excited about getting involved in that deal. Agents are more likely to work harder to get top dollar for a home with a reasonable commission.

Ultimately, you end up with underserved buyers and sellers. But because this is a fairly new idea, buyers and sellers need to be educated on why this doesn’t work out as well for them in practice as it does in theory.

Get Your Real Estate License in Florida

Are you ready to start earning commissions as a real estate agent in Florida? Before you get started, you’ll want to understand how much it costs to become a real estate agent.

Next, you’ll need to complete the required education. The good news is that you can do it online from the comfort of your home. Once completed, you'll need to pass the state real estate exam (which you can also take online) and find a sponsoring broker. Then, you can apply for your license and get to work earning that commission.

Start your Florida real estate courses online today!