Nebraska real estate commission rates average 5.71% of a property’s purchase price, based on a 2024 survey by FastExpert. This rate exceeds the U.S. average real estate commission of 5.57%. For those aspiring to become real estate agents in Nebraska, this information can help you estimate how many properties you need to sell at a specific price point to achieve your income goals.
Read on to learn how to calculate real estate commissions in Nebraska. We’ll explain how these commissions are determined and who pays them. Additionally, we will provide the average commission you could expect to earn in Nebraska’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 Nebraska
Most real estate agents do not earn a regular salary; they work solely on commission. This commission-based model has been the standard since the 1950s. However, changes to this structure, particularly for buyer’s agents, are anticipated due to the recent NAR lawsuit. Despite potential shifts in commission structures in the Nebraska market in the coming months, the demand for real estate agents will remain high.
Related: How Do REALTORS Get Paid? What Every Agent Needs to Know!
How is the real estate commission in Nebraska 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 Nebraska is currently $265,435. With Nebraska’s average negotiated commission rate of 5.71%, real estate professionals earn approximately $15,156 to oversee the average transaction.
Who pays the real estate commission in Nebraska?
In Nebraska, 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 Nebraska fluctuate over time?
Despite recent headlines and growing competition from online real estate companies, commission rates in Nebraska 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 Nebraska
The average real estate commission rate in Nebraska is 5.71%.
According to data collected by Colibri Real Estate, the average income of a real estate agent in Nebraska is $185,966.
Average Nebraska real estate commission rate by city
Below is the average home value in Nebraska’s ten most populated cities. Based on a 5.71% commission rate, here’s how much real estate professionals earn by selling an average property.
Average Real Estate Commission for 10 Nebraska Cities
| City | Average Home Value | 5.71% Real Estate Commission |
|---|---|---|
| Omaha, NE | $284,747 | $16,259 |
| Lincoln, NE | $282,943 | $16,156 |
| Bellevue, NE | $286,680 | $16,369 |
| Grand Island, NE | $242,637 | $13,855 |
| Kearney, NE | $298,037 | $17,018 |
| Fremont, NE | $242,046 | $13,821 |
| Norfolk, NE | $240,736 | $13,746 |
| Hastings, NE | $175,867 | $10,042 |
| Columbus, NE | $265,743 | $15,174 |
| Papillion, NE | $401,252 | $22,911 |
As mentioned, this 5.71% commission is typically split between the buyer’s and seller’s agents and brokerages.
Average Nebraska real estate commission rate by property type
So far, we have focused on residential real estate commissions in Nebraska. However, some real estate agents specialize in commercial real estate or other real estate niches, such as investment or agricultural properties.
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 Nebraska 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 Nebraska, 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 Nebraska?
The 5.71% 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 Nebraska Real Estate for a $265,435 Property
| Item | Amount |
|---|---|
| Sale Price of home | $265,435 |
| Total commission paid to real estate professionals | $15,156 |
| Seller’s agent commission (based on a 50/50 split) | $3,789 |
| Seller’s agent’s brokerage commission | $3,789 |
| Buyer’s agent commission (based on a 50/50 split) | $3,789 |
| Buyer’s agent’s brokerage commission | $3,789 |
We hope these figures clearly explain how much you might expect to earn on an average transaction as a real estate agent in Nebraska.
Becoming a real estate agent can be 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 Nebraska 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 Nebraska.
Key Takeaways
- The average real estate commission rate in Nebraska is 5.71%, higher than the U.S. average of 5.57%.
- The recent NAR lawsuit may change commission structures, particularly for buyer’s agents. This could potentially lead to buyer agents being paid directly by their clients.
- With the average home value in Nebraska at $265,435, real estate agents earn approximately $15,156 per transaction, making it a lucrative career or side gig with unlimited income potential.
- For those focusing on commercial real estate or other niches, continuing education and specialized training are crucial for better serving clients and maximizing earnings.
Sources:
1. “Nebraska Home Prices & Home Values.” July 22, 2024. Zillow. Nebraska Home 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/.
