According to a 2024 survey by FastExpert, Florida’s real estate commission rates average 5.53% of a property’s purchase price, which is slightly below the U.S. average of 5.57%. If you’re considering a career as a real estate agent in Florida, this information can help you estimate how many properties you need to sell at a given price point to meet your income goals.
Read on to learn how to calculate real estate commissions in Florida. We’ll explain how these commissions are determined and who is responsible for paying them. Additionally, we will provide the average commission rates you can expect to earn in Florida’s ten most populated cities. We’ll also explore the potential impact of the proposed National Association of REALTORS® settlement on real estate agent salaries.
How Real Estate Agent Commission Works in Florida
Most real estate agents don’t earn a regular salary. Instead, they work exclusively on commission. This commission-based model has been the norm for listing agents since the 1950s. However, changes to this structure, especially for buyer’s agents, are expected due to the recent NAR lawsuit. Despite potential changes in commission structures in the Florida market in the coming months, the demand for real estate agents is expected to remain high.
Related: How Do REALTORS Get Paid? What Every Agent Needs to Know!
How is the real estate commission in Florida calculated?
Typically, seller’s agents agree to provide services to their clients for a set commission rate, which is often shared with the buyer’s agent. Once the transaction is complete, the commission rate is multiplied by the property sale price to determine the payment to the real estate professionals.
Some suspect this system may change now that seller’s agents can no longer advertise the buyer’s agent commission on an MLS. However, it remains to be seen how commission structures will evolve as a result of the NAR settlement. Seller’s agents may still share their commissions with agents who bring buyers for their listings, or the seller (or buyer) may agree to compensate the buyer’s agent directly.
Real estate agents following the traditional structure will still be compensated based on the property’s sale price. According to Zillow, the average home value in Florida is currently $398,077. With Florida’s average negotiated commission rate of 5.53%, real estate professionals earn approximately $22,014 to oversee the average transaction.
Who pays the real estate commission in Florida?
In Florida, the seller typically pays the real estate commission. However, this fee structure may change due to the recent NAR settlement, potentially leading to more buyer agents being paid directly by their clients. Buyer’s agents will now be required to have a written agreement with their clients that outlines compensation.
Does the real estate commission rate in Florida fluctuate over time?
Despite recent headlines and growing competition from online real estate companies, commission rates in Florida and across the U.S. have remained relatively steady at around 6%. However, real estate commission rates have always been negotiable.
Average Real Estate Commission Rate in Florida
The average real estate commission rate in Florida is 5.53%.
According to data collected by Colibri Real Estate, the average income of a real estate agent in Florida is $79,537.
Average Florida real estate commission rate by city
Below is the average home value in Florida’s ten most populated cities. Based on a 5.53% commission rate, here’s how much real estate professionals may expect to earn by selling an average property.
Average Real Estate Commission for 10 Florida Cities
| City | Average Home Value | 5.53% Real Estate Commission |
|---|---|---|
| Jacksonville, FL | $302,349 | $16,720 |
| Miami, FL | $581,538 | $32,159 |
| Tampa, FL | $385,025 | $21,292 |
| Orlando, FL | $389,090 | $21,517 |
| St. Petersburg, FL | $383,372 | $21,200 |
| Port St. Lucie, FL | $399,977 | $22,119 |
| Cape Coral, FL | $383,112 | $21,186 |
| Hialeah, FL | $453,501 | $25,079 |
| Tallahassee, FL | $292,189 | $16,158 |
| Fort Lauderdale, FL | $529,097 | $29,259 |
As mentioned, this 5.53% commission is typically split between the buyer’s and seller’s agents and brokerages.
Average Florida real estate commission rate by property type
So far, we have focused on residential real estate commissions in Florida. However, some real estate agents specialize in commercial real estate or other niches, such as investment properties or condos.
Some commercial real estate transactions use the standard 6% commission rate, while others employ a graduated structure (e.g., 5% up to $1M, 4% for $1M-$5M). Additionally, some commercial real estate agents in Florida negotiate a flat fee. Commissions vary depending on the property’s location, market conditions, and the deal’s complexity.
If you focus on commercial real estate in Florida, taking as many continuing education courses and specialized training as possible can help you better serve your clients in this niche.
How Is the Commission Divided Between Agents in Florida?
The 5.53% real estate commission is typically divided between the buyer’s and seller’s agents and their respective brokerages. Here’s an example of how this commission split might look for an average transaction.
Example of How Commission Splits Work in Florida Real Estate for a $398,077 Property
| Item | Amount |
|---|---|
| Sale price of home | $398,077 |
| Total commission paid to real estate professionals | $22,014 |
| Seller’s agent commission (based on a 50/50 split) | $5,500 |
| Seller’s agent’s brokerage commission | $5,500 |
| Buyer’s agent commission (based on a 50/50 split) | $5,500 |
| Buyer’s agent’s brokerage commission | $5,500 |
We hope these figures provide a clear understanding of how much you might earn on an average transaction as a real estate agent in Florida.
Becoming a real estate agent can be a rewarding full-time career or a lucrative side gig with unlimited income potential. The sooner you begin the licensing process, the sooner you can start earning impressive commissions. Sign up today for your pre-licensing courses with Colibri Real Estate School.
Colibri Real Estate’s Florida real estate classes are convenient and affordable. Our online, self-paced courses allow you to complete your studies anytime, anywhere. You’ll receive a quality education designed by local experts, preparing you to become a top-producing real estate agent in Florida.
Key Takeaways
- Florida’s average real estate commission rate is 5.53% of a property’s sale price. This rate is comparable to the national average and can help prospective agents estimate their potential earnings.
- Typically, the seller pays the real estate commission in Florida. However, due to recent NAR settlement changes, buyer agents may increasingly be paid directly by their clients, requiring written agreements outlining compensation.
- Following traditional commission structures, real estate agents in Florida can expect to earn approximately $22,014 on an average home sale valued at $398,077. This figure is based on the average home price and commission rate.
- Agents specializing in commercial real estate or other niches, such as investment properties or condos, may encounter different commission structures. Continuing education and specialized training can enhance an agent’s ability to serve clients effectively in these areas.
Sources:
1. “Florida Home Prices & Home Values.” August 5, 2024. Zillow. FloridaHome Prices & Home Values | Zillow
2. Matarazzo, Steph. “Average Real Estate Agent Commissions by State (2024 Survey).” FastExpert. January 23, 2024. https://www.fastexpert.com/blog/real-estate-agent-commissions-by-state/.
