The average realtor commission in Utah is around 5.36%, the equivalent of about $29,581 in realtor fees based on the average home sale price in Utah. It is essential to be familiar with the average commission fee where you live to prepare yourself for the cost of selling your home. Understanding how much money you will walk away with after the sale of a house is critical to making an informed decision.
Even though $29,581 may sound excessive, realtors work hard to sell your home. In addition, the commission is often split between four representatives, so your agent will only receive a small portion of the commission.
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What is a Fair Price for Real Estate Agents in Utah?
When you’re beginning to think of finding a realtor to sell your property, you are probably wondering what is a fair amount to pay them. In Utah, the average commission fees are around 5.36% of the sale price, but this can range from 4.6% to 6.12%. For example, a Utah home that sells for $551,884 could have the following possible real estate agent fees:
Realtor commissions can be negotiated. Be upfront with your agent and respectfully discuss what the options are regarding the commission. Whatever agreement you come to with your real estate agent in Utah will be dependent on what you both think is fair. But to understand commission fees, consider the factors that impact an agent’s fee percentage:
- Split Commission: Realtors split their commissions with the buyer’s agent and their respective brokerages. The listing agents especially only get a percentage of the total fees.
- Risk: Being a realtor comes with a lot of risks when listing houses. The realtors must pay for marketing before the negotiations are complete. They only get paid after the sale is complete.
- It is hard to find clients: Many costs go into finding clients. A lot of the real estate agent’s time and money go into finding clients to purchase a home.
However, finding the right agent is worth the cost of the commission. Homes that are not marketed well or priced right sit on the market or are unable to sell. Have peace of mind and search our real estate agent directory to find the best real estate agents for a successful sale.
Many real estate companies, including our real estate agents, are determined to make the process easier for clients and agents. Home sellers can match with the realtors directly and reduce the cost and time to find clients. .
How Much Does it Cost to Get a Realtor in Utah?
The average realtor fee in Utah is 5.36% of the sale price. The exact numbers will, of course, depend on the sale price of your home. The seller is usually responsible for paying the realtor fees from the proceeds upon the sale completion. You aren’t required to pay agents this fee until the house is sold. But you need to remember that sellers are expected to pay both the listing agent’s fee and the buyer’s agent’s fee.
The table below provides an example of how the realtor commission fees are related to the seller’s profit at the end of a home sale in Utah.
|Realtor fees (at 5.36%)
|Seller closing costs
|Seller net profit
How is the Realtor Commission Split in Utah?
When you complete a successful home sale in Utah, the listing agent is entitled to 1.34% of your total sale price. But wait! If the listing agent only gets 1.34%, why is the commission fee a whopping 5.36%? That’s because the fees are usually split four ways. While the exact breakdown may differ among brokerages, the buyer’s and seller’s brokerage divides the commission in half and splits it between the agent and broker.
This table is an example of the way commission rates are split among each of the parties after a home sale in Utah:
|Seller’s agent takes home
|Seller’s agent’s broker split
|1.34% (~50% of the seller’s agent’s commission)
|Buyer’s agent take home
|Buyer’s agent’s broker split
|1.34% (~50% of the buyer’s agent’s commission)
Who Pays Utah Realtor Commission Fees?
Like most real estate, the seller is required to pay the realtor’s commission fees in Utah. This includes the fees for all parties participating in the sale. The realtor fees are a part of the home costs; most of the time, they are paid from the proceeds of the home sale. This means that home sellers aren’t required to pay real estate commissions until after the home is sold. Then, both the buyer’s and seller’s agents and their respective brokerages will be paid.
As a seller, you might feel a bit salty that you are responsible to pay all the agent commission fees. It’s natural to wonder why that responsibility always falls on the seller. Even though the buyer’s agent is “working” for the buyer, they are technically helping market the seller’s home. Therefore, the buyer’s agent fees are considered part of the advertising costs for the home. By offering an attractive price for the buyer’s agent commission, realtors have a good reason to show clients your home.
Negotiating Lower Realtor Fees
When you’re trying to sell your home in Utah, you always have the option of negotiating lower commission rates with your real estate agent. Some negotiation is expected and you aren’t required to accept the rate the agent gives you. However, some rates are set by the brokerage and individual agents don’t have much wiggle room. Additionally, most agencies in an area will already offer comparable rates. But with the current seller’s market in Utah, homeowners have an advantage. Listing prices are increasing and sellers can be choosier when picking an agent to work with. This may give them a bit more negotiating power when discussing realtor fees.
Selling Without a Realtor
Putting your home for sale by owner (FSBO) in Utah allows you to avoid the listing agent commission fee. This cuts the commission rate in half (the seller still has to pay the buyer’s agent and brokerage fees).
Even though the savings are attractive, you should know that selling your home on your own can be very risky and time-consuming. You’d be responsible for finding buyers and carrying out negotiations on your own, all while trying to list your home and sift through the legal paperwork. When you opt for FSBO, you lose access to the market expertise that comes with a professional realtor.