Louisiana real estate commission rates are an average of 5.2% of a property’s purchase price, according to a 2024 survey conducted by FastExpert. This is below the U.S. average real estate commission of 5.57%. For those looking to become real estate agents in Louisiana, this insight can guide you in calculating the number of properties at a certain price point you need to sell to reach your income goals.
Continue reading to learn how to calculate real estate commissions in Louisiana. We’ll cover how these commissions are determined and who pays them. Additionally, we will share the average commission you could expect to earn in Louisiana’s ten most populated cities. We’ll also discuss the potential impact of the proposed National Association of REALTORS® settlement on real estate agent salaries.
How Real Estate Agent Commission Works in Louisiana
Most real estate agents do not receive a regular salary; they work entirely on commission. This commission-based compensation model has been standard since the 1950s. However, changes to this structure, especially for buyer’s agents, are expected due to the recent NAR lawsuit. Despite potential shifts in commission structures in the Louisiana market in the coming months, real estate agents will continue to be in high demand. The more transactions you manage, the more income you will generate.
Related: How Do REALTORS Get Paid? What Every Agent Needs to Know!
How is the real estate commission in Louisiana calculated?
Typically, seller’s agents agree to provide services to their clients for a set commission rate. This commission 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 how much is paid 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, how commission structures change as a result of the NAR settlement remains to be seen. Seller’s agents still may share their commissions with agents who find buyers for their listings. Or, in some cases, 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 Louisiana is currently $202,170. Since Louisiana’s average negotiated commission rate is 5.2%, real estate professionals receive $10,513 for overseeing the average transaction.
Who pays the real estate commission in Louisiana?
In Louisiana, the seller typically pays the real estate commission. However, this fee structure may change due to the recent NAR settlement, leading to more buyer agents being paid directly by their buyer 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 Louisiana fluctuate over time?
Despite recent headlines and growing competition from online real estate companies, commission rates in Louisiana and across the U.S. have remained relatively steady at around 6%. Real estate commission rates have always been negotiable.
Average Real Estate Commission Rate in Louisiana
The average real estate commission rate in Louisiana is 5.2%.
According to data collected by Colibri Real Estate, the average income of a real estate agent in Louisiana is $114,889.
Average Louisiana real estate commission rate by city
Below is the average home value in Louisiana’s ten most populated cities. Based on a 5.2% commission rate, here’s how much real estate professionals earn by selling an average Louisiana property.
Average Real Estate Commission for 10 Louisiana Cities:
| City | Average Home Value | 5.8% Real Estate Commission |
|---|---|---|
| New Orleans, LA | $247,672 | $12,879 |
| Baton Rouge, LA | $224,028 | $11,649 |
| Shreveport, LA | $138,808 | $7,218 |
| Metairie, LA | $290,358 | $15,098 |
| Lafayette, LA | $218,803 | $11,378 |
| Lake Charles, LA | $195,444 | $10,163 |
| Bossier City, LA | $217,631 | $11,317 |
| Kenner, LA | $226,741 | $11,791 |
| Monroe, LA | $141,980 | $7,383 |
| Alexandria, LA | $131,399 | $6,833 |
Source for Average Home Value: Zillow. July 2024
As mentioned, this 5.2% commission is typically split between the buyer’s and seller’s agents and brokerages.
Average Louisiana real estate commission rate by property type
So far, we have focused on residential real estate commissions in LA. However, some real estate agents focus on commercial real estate – or another niche in real estate, such as investment properties or vacation homes.
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 Louisiana negotiate a flat fee. Commercial real estate commissions vary depending on the property’s location, market conditions, and the complexity of the deal.
If you focus on commercial real estate in Louisiana, take as many continuing education courses and specialized training as possible to help you better serve your clients in this niche.
How Is the Commission Divided Between Agents in Louisiana?
The 5.2% 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 Louisiana Real Estate for a $202,170 Property
| Item | Amount |
|---|---|
| Sale Price of home | $202,170 |
| Total commission paid to real estate professionals | $10,513 |
| Seller’s agent commission (based on a 50/50 split) | $2,628 |
| Seller’s agent’s brokerage commission | $2,628 |
| Buyer’s agent commission (based on a 50/50 split) | $2,628 |
| Buyer’s agent’s brokerage commission | $2,628 |
We hope these numbers give you some understanding of how much you may expect to earn on an average transaction as a real estate agent in Louisiana.
Becoming a real estate agent is a rewarding full-time career or side gig with unlimited income potential. The sooner you begin the licensing process, the sooner you can start earning these impressive commissions. Sign up today for your pre-licensing courses with Colibri Real Estate School.
Colibri Real Estate’s Louisiana real estate classes are convenient and affordable. Our online, at-your-own-pace courses allow you to complete your studies anytime – and anywhere. You’ll receive a quality education designed by local experts that will prepare you to become a top-producing real estate agent in Louisiana.
Key Takeaways
- The average real estate commission rate in Louisiana is 5.2%.
- Real estate commissions in Louisiana are typically shared between the buyer’s and seller’s agents and their brokerages. The commission rate is negotiable and generally calculated as a percentage of the property’s sale price.
- Due to the recent National Association of REALTORS® (NAR) lawsuit, changes to commission structures, especially for buyer’s agents, are anticipated. Despite these potential shifts, real estate agents in Louisiana will remain in high demand, and the more transactions they manage, the higher their income potential.
- The average income of a real estate agent in Louisiana is $114,889, with commissions varying by city and property type.
