Idaho real estate commission rates average 5.69%, according to 2023 data gathered by FastExpert. (The national average real estate commission is 5.57%.) But what does that mean for someone interested in becoming a real estate agent in Idaho?
Learn how Idaho real estate commissions are calculated, how commissions are typically divided between agents, and the average commission in the ten biggest cities in the state as we analyze Idaho real estate commissions.
How Real Estate Agent Commission Works in Idaho
Most real estate agents do not receive set salaries. Instead, as a REALTOR®, you will earn commissions based on a percentage of the property’s sale price. The commission is typically shared between the seller’s and buyer’s agents – and their brokerages.
Learn more about real estate commission splits by reading How Do Realtors Get Paid? What Every Agent Needs to Know!
The great news about real estate commissions is the more you sell, the more you earn. In fact, you may be excited to get started in the real estate industry because of this unlimited earning potential.
You may wonder how much you will earn as a real estate agent in Idaho. Of course, those numbers depend on how much you sell, but we can give you a ballpark estimate of what you will earn for an average property.
How is real estate commission in Idaho calculated?
Idaho real estate commission is based on the property’s sale price. For example, if you agree to provide real estate services to your client for a 5.69% commission, you’ll multiply the final sale price by 5.69% to determine the commission. Of course, this money is typically split between the buyer’s and seller’s agent. The seller’s agent usually sets the buyer’s agent’s commission.
According to Zillow, the average home value in Idaho is currently $442,087. This is excellent news for real estate agents. Since Idaho’s average negotiated commission rate is 5.69%, real estate agents will earn $25,155 for overseeing the average real estate transaction.
Who pays the real estate commission in Idaho?
The seller typically pays the real estate commission in Idaho. The real estate agent fees are usually deducted from the seller’s proceeds.
Does Idaho’s real estate commission rate fluctuate over time?
The 6% commission model has been the norm in real estate for decades. While that rate may fluctuate by a few tenths of a percentage, it has hovered around 6% in Idaho and the rest of the country.
Average Real Estate Commission Rate in Idaho
The average real estate commission rate in Idaho is 5.69%. Of course, as in any state, Idaho home prices vary by location and the home’s size, condition, and amenities. While we cannot break down all possible income scenarios based on the specifics of each home, we can report the average Idaho real estate commission rate by city.
Average Idaho real estate commission rate by city
Here’s what you can expect to earn in commission as a real estate agent working in Idaho. Please note that the amounts are based on the average home value in Idaho’s ten most populated cities.
Average Real Estate Commission for 10 Idaho Cities
| City | Average Home Value | 5.69% Real Estate Commission
|
| Boise, ID | $468,086 | $26,634 |
| Meridian, ID | $510,138 | $29,026 |
| Nampa, ID | $390,497 | $22,219 |
| Idaho Falls, ID | $366,972 | $20,881 |
| Pocatello, ID | $313,283 | $17,826 |
| Caldwell, ID | $375,162 | $21,347 |
| Coeur d’Alene, ID | $552,824 | $31,456 |
| Twin Falls, ID | $347,768 | $19,788 |
| Lewiston, ID | $356,243 | $20,270 |
| Post Falls, ID | $489,489 | $27,851 |
Source for Average Home Value: Zillow. November 2023
Becoming a real estate agent in Idaho can be somewhat lucrative. However, it’s important to note that you won’t receive the entirety of the 5.69% commission. The seller’s agent shares this commission with the buyer’s agent. In addition, both agents share their portion of the commission with their respective brokerages. Real estate agents are also responsible for paying income taxes out of these earnings.
Average Idaho real estate commission rate by property type
So far, we have only discussed residential real estate commissions in Idaho. However, when you become a real estate agent, you can specialize in a niche, such as luxury properties, vacation homes, or commercial real estate. Commercial real estate includes office buildings, retail space, and industrial buildings.
Commercial real estate commissions in Idaho vary depending on location, property type, market conditions, the deal’s complexity – and the commission structure you negotiate with your client.
For example, some Idaho commercial real estate commissions are based on a percentage of the sale, the same as residential real estate commissions. Sometimes commercial commissions are graduated (for example, 5% up to $1M, 4% for transactions over $1M and up to $5M). Finally, some commercial real estate agents negotiate for a flat fee.
It’s worth noting that Idaho has no special license to work in commercial real estate. Once certified as a real estate agent in Idaho, you can take continuing education courses and specialized training focused on this niche.
How Is the Commission Divided Between Agents?
The 5.69% Idaho real estate commission is typically shared between the buyer’s and seller’s agents – with the seller’s agent setting the buyer’s commission. Then, each real estate agent shares their commission with their brokerage.
The brokerage’s percentage depends on the commission structure the agent agrees to when signing with the company. One typical arrangement is a 50/50 split, which means the agent and the brokerage each receive 50% of the commission earned from a transaction
Here’s how the 5.69% real estate commission is typically split. The following numbers are based on the current average price of a home in Idaho and a 50/50 commission structure.
Example of How Commission Splits Work in Idaho Real Estate for a $442,087 Property
| Item | Amount |
| Total commission paid to real estate professionals for a $422,087 property | $25,155 |
| Seller’s agent commission | $6,289 |
| Buyer’s agent commission | $6,289 |
| Seller’s agent’s brokerage commission (based on a 50/50 split) | $6,289 |
| Buyer’s agent’s brokerage commission (based on a 50/50 split) | $6,289 |
Are you ready to become a real estate agent in Idaho? As you can see, being a REALTOR® can be highly lucrative and one of the few professions with unlimited income potential. Plus, by working as a real estate agent, you’ll have the honor of helping your clients select their family’s home. As far as job satisfaction goes – it doesn’t get any better than that.
Colibri Real Estate (formerly Real Estate Express) offers exam prep packages to help you become a real estate agent in Idaho. This is perfect for aspiring real estate agents looking for added confidence before taking the Idaho real estate exam.
We at Colibri are so sure we can help you pass the Idaho real estate licensing exam that we offer the Pass or Don’t Pay Guarantee. If you don’t pass the Idaho real estate exam on your first try, we’ll refund the original purchase price of your exam prep package.
Today is the day to take the steps needed to become a real estate agent!
Sources:
- “Idaho Home Prices & Home Values.” November 29, 2023. Zillow. Idaho Home Prices & Home Values | Zillow.
- 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/.
