You’ve decided you’re ready to sell your house. Congratulations! There are many commission options to choose from, and this guide is meant to help you choose the best for your situation. 

It is important to not only find a realtor that you trust and work well with, but it’s also important to understand their list of services and the commission that you will pay them when the transaction is complete. 

What is the typical commission for a realtor in Oklahoma?

The most common realtor commission payout in Oklahoma is between 5-6%. Currently, in most transactions the home seller pays the entire commission which is split between the seller and the buyer realtor. 

On a $400,000 home sale, the buyer and seller realtors split a commission of $20,000-$24,000. This often represents the largest hidden cost involved in a home sale.

Many sellers today are realizing that these high commission rates are simply unnecessary. So what other options are there? Let’s dive in.

Typical Realtor Commission Rates in Oklahoma

There are basically three commission options to consider when preparing to list your home for sale in Oklahoma.

1. Traditional, or full 3% commission
2. Low Commission or Discount Real Estate Agent, which can include anything under 3%
3. For Sale By Owner (FSBO), where you have no realtor and pay no commission

Let’s dive into typical commission rates that you’ll find. 

Among these three groups there are also varying levels of services that the agents will perform as part of their representation of you and your home. 

You’ll discover that among the Traditional and Low Commission/Discount groups, there are realtors that offer varying degrees of service.

Pro Tip: You don’t need to pay 3% list fee to receive full service.

The traditional 3% commission listing realtor

The traditional 3% fee for real estate listing agents was set back in the 1950’s, and has remained relatively unchanged since then. Most realtors continue setting their fee at 3%.

Due to a lack of transparency, most consumers today don’t realize this is what they’re paying. A study in 2019 identified that only 32% of Americans were able to correctly identify commission fee amounts on home sales. This translates into millions of dollars paid as commission fees that most consumers are not aware of. 

We believe that greater price transparency can lead to efficient outcomes and lower prices for homeowners.

Oklahoma Discount Realty or Low Commission Realty 

Discount and Low Commission realtors comprise the group between FSBO and the traditional 3%. Many realtors that are discount do offer Full Service, so be sure to look for that! This is a GREAT way to save money and still maintain representation throughout the process.

If you are seeking basic realtor support, without full service, then a Flat Fee realtor option may be your best fit.

Keep in mind that although the listing fee may be discounted, if there is an agent representing the home buyer then you as the seller are also responsible for that commission. In Oklahoma the buyer agent commission fee ranges from 2.5%-3% typically.

How does 1% realty work?

A 1% list commission realtor is an agent that charges 1% of the final sale price for their commission.

At JMR Realty, we believe in providing full service, and transparency in our pricing. After all, it’s your money and your investment in your future. Listing at 1% means you can save more of your equity you have built up.

When you are looking for a realtor to represent you, make sure to clearly identify the services that they are bringing to the table.

Full service real estate agents should represent you from start to finish, help you navigate pricing, negotiations and help you make sure your home is presented in the most professional manner possible to buyers. 

How does a Flat Fee MLS listing work?

A flat-fee commission model typically means that for a flat rate, a realtor will perform a set of services for you to assist you in your home sale.

Flat fee MLS agreements can be viewed more like a partnership, also called a ‘limited service’ agreement.

This option is best for home sellers that have both the time and the experience to be able to navigate their way through the selling & contract process. 

Flat fee sellers also have the opportunity to save more money on their home sale, since the price is paid up front and is not a percentage of the sale price. 

Flat fee representation is not for everyone, so it’s important to understand if this makes sense for your situation. It’s also important to ask before signing up for a flat fee real estate agreement whether the broker will be available to answer questions throughout the process.

What’s FSBO (for sale by owner)?

FSBO stands for ‘For Sale By Owner’. These homes are sold without the active assistance of a realtor. Most homes that are FSBO typically sell to someone that the homeowner already knows, such as a family member.

The challenge with this route is that most home sales today are sold using the MLS database online. Zillow, Realtor.com, and mlsok.com all rely on the MLS feed. 

Of these popular sites, only Zillow allows homes to be listed without realtor representation. This means that FSBO homes miss out on a large audience seeing their home.

There are limited situations where this is appropriate for homeowners, however we have seen that many homeowners find the lack of internet visibility and agent support to damper their opportunity at a sale. 

One option that FSBO home sellers have is to pay a flat fee realtor to list your home on MLS. This is the best of both worlds; you can still maintain control over the selling process and reap the benefits of increased exposure on the MLS. Read more about Flat Fee MLS Listing for FSBO homes here.

Can I list on MLS without a realtor?

No, it is not possible to list on MLS without a realtor. You need to decide what level of representation makes sense for your situation. If you want full service representation, then choosing a “full service for 1%” realtor will help you save money and get full representation. If you just want to be listed on MLS without realtor representation, then flat fee listing is your best option.

How do I choose a low cost realtor?

Most consumers choose the first realtor they speak with. Especially for first time home sellers, it is important that you educate yourself on the process of home selling, what it will cost you, and the people that can help you with your real estate needs. As mentioned above, searching for a realtor in a way where you are asking about their services and their commission will help you find the best match.

Questions to ask yourself as you start the process of finding a realtor to represent you: 

・Process: What’s the process of buying or selling a home? What do I need to do, and what does my realtor do? 

・Pricing: Where does the money go? How much will this cost, and how can I save money? 

・People: Who are the people that can help me accomplish what I need? 

At JMR Realty, we’re on a mission to help consumers better understand the process of buying and selling real estate. We know this is one of the biggest decisions you’ll make in your life.

Our pricing is clear and transparent, and we want to help you understand all along the way what to expect with your real estate transaction. For more information, check out our list of 6 costs to anticipate when selling your home.

It takes a team to buy or sell a home, and we believe we’re the people to help you get there. We bring to the table our valued local Oklahoma partners to help you achieve your goal of home buying, selling, or both.

We value the opportunity to help you save money on your next home sale!