Georgia real estate commission rates hover around 5.84%, according to a 2023 survey conducted by FastExpert. (For reference, the national average real estate commission rate is 5.57%.) But what does that mean for someone interested in becoming a real estate agent in Georgia?
Learn how your commission will be calculated, how commissions are typically divided between agents, and how the commission rates vary by property type as we do a deep dive into this topic.
How Real Estate Agent Commission Works in Georgia
It’s important to note that as a real estate agent, you will not receive a set salary. Instead, you will work on commission – or money you earn from each sale. You’ll share your commission with your brokerage – with a fixed or graduated commission split.
So, this means that the more you sell, the more you earn! The ability to maximize your earnings may be one reason you are drawn to the real estate industry.
Now, let’s look at the numbers – and how a real estate commission in Georgia is calculated.
How is real estate commission in Georgia calculated?
Real estate commission in Georgia is based on the property’s sale price. The agreed upon commission rate is multiplied by the sale price to determine the commission.
According to Zillow, the average home value in Georgia is currently $319,166. Since the average negotiated commission rate in Georgia is 5.84%, real estate agents will receive $18,639 for offering services related to the transaction. The buyer’s agent and seller’s agent will share this commission. Those agents’ brokerages will also receive a share of these proceeds.
Who pays the real estate commission in Georgia?
The seller typically pays the real estate commission in Georgia. Usually, the REALTOR® fees are deducted from the seller’s proceeds.
Does the real estate commission rate in Georgia fluctuate over time?
The real estate commission rate has remained relatively steady in Georgia – as in the rest of the country – at around 6%. It’s worth noting that some real estate agents negotiate their commission rates to land a client.
Average Real Estate Commission Rate in Georgia
The average real estate commission rate in Georgia is 5.84%. However, once you start working in the industry, you may realize that commission rates vary by city and property type. Of course, your cut of the commission will also vary depending on your agreement with your brokerage.
Did you know that 30% of REALTORs earned over $100,000 annually in 2021? (National Association of Realtors Member Profile)
Average Georgia real estate commission by city
Here’s what you can expect to earn in commission as a buyer’s or seller’s agent working in Georgia. Please note that the numbers are based on the average home value in Georgia’s top ten most populated cities.
Average Real Estate Commission for 10 Georgia Cities
| City | Average Home Value | 5.84% Real Estate Commission |
| Atlanta, GA | $380,298 | $22,209 |
| Columbus, GA | $152,559 | $8,909 |
| Augusta, GA | $177,088 | $10,342 |
| Macon, GA | $155,941 | $9,107 |
| Savannah, GA | $293,446 | $17,137 |
| Athens, GA | $306,127 | $17,878 |
| Sandy Springs, GA | $636,701 | $37,183 |
| Fulton County, GA | $426,152 | $24,887 |
| Roswell, GA | $607,235 | $35,462 |
| Johns Creek, GA | $654,944 | $38,249 |
Source for Average Home Value: Zillow. November 2023
Remember, this 5.84% commission is typically split between the real estate agents and their brokerages. Also, real estate agents are responsible for paying their income taxes out of these earnings.
Average Georgia real estate commission rate by property type
So far, we have only discussed residential real estate commissions. However, when you become a real estate agent, you have your choice of niches. For example, commercial real estate (office, multi-family, retail, and industrial) can be lucrative.
Commercial real estate commissions vary depending on property type, location, market conditions, and the deal’s complexity. Some Georgia commercial real estate commissions are based on a percentage of the sale (6%, for example). Other commercial commissions are graduated (5% up to $1M, 4% of $1M-$5M, for example). Finally, some commercial real estate agents negotiate for a flat fee.
It’s worth noting that there is no special licensing requirement to work in commercial real estate. However, once certified, you can take continuing education courses in Georgia and specialized training focused on this niche.
How Is the Commission Divided Between Agents?
We mentioned earlier that the 5.84% Georgia real estate commission is typically shared between the buyer’s agent and the seller’s agent. Here’s what that division looks like – using the current average home value for a house in Georgia.
Example of How Real Estate Commission Splits Work in Georgia for the average home value of $319,166
| Item | Amount |
| Sale price of home | $319,166 |
| Total commission paid to real estate professionals | $18,639 |
| Buyer’s agent commission (based on a 50/50 split) | $4,659 |
| Buyer’s agent’s brokerage commission | $4,659 |
| Seller’s agent commission (based on a 50/50 split) | $4,659 |
| Seller’s agent’s brokerage commission | $4,659 |
These numbers will help you imagine the income potential that awaits you as a real estate agent in Georgia.
Are you excited to become a real estate agent in Georgia? We understand why! Being a REALTOR® is a rewarding profession with unlimited income potential! Get started today by selecting an online real estate school to complete your required 75-hour pre-licensing course.
Colibri Real Estate (formerly Real Estate Express) is a leading real estate school in Georgia. Colibri Real Estate offers two ways to complete your Georgia real estate pre-licensing classes – online at your own pace or via virtual livestream classes led by an experienced real estate instructor.
We at Colibri are so sure we can help you pass the Georgia real estate licensing exam that we offer the Pass or Don’t Pay Guarantee.
Learn more about the Georgia real estate license requirements. Then, when you are ready, enroll in the Colibri Real Estate licensing course for Georgia.
Sources:
“Georgia Home Prices & Home Values.” November 16, 2023. Zillow. https://www.zillow.com/home-values/16/ga/.
Matarazzo, Steph. “Average Real Estate Agent Commissions by State (2023 Survey).” FastExpert. October 26, 2022. https://www.fastexpert.com/blog/real-estate-agent-commissions-by-state/.
