Berkshire Hathaway HomeServices is one of the largest luxury real estate brokers in the country, with over 45,000 agents. These agents work entirely on commissions, which they split with their brokers.
At 60/40, the typical Berkshire Hathaway commission split is in line with other national brokerages. Experienced agents can negotiate more favorable splits, and commission agreements can vary by location.
No set commission applies to all Berkshire Hathaway real estate agents because brokers don’t set these rates — agents negotiate them with their clients. The fee you pay as a seller or buyer will depend on what’s negotiated in your listing or purchase agreement (the contract you sign with your agent).
In a typical real estate transaction, realtor fees are 2.5–3% of the purchase price of a home.
However, you could save with a low-commission agent, including one from Berkshire Hathaway, if you find them through Clever Real Estate. These agents offer full services for just a 1.5% listing fee. Find the top 1.5% agents near you.
Berkshire Hathaway fees for sellers
Berkshire Hathaway agent fees are negotiated between the seller and their listing agent and agreed to in writing in the listing agreement.
A standard listing fee is 2.5–3% of the home’s final sale price. Nationally, the average real estate commission rate is 2.77%. So, on a $500,000 home, the listing agent’s commission would be about $13,700.
For this price, a Berkshire Hathaway realtor’s services include:
- Determining a list price
- Arranging professional photography
- Listing and marketing the home
- Scheduling showings and open houses
- Helping you navigate the appraisal and inspection
- Negotiating offers with buyers
- Completing all necessary paperwork
“It is the realtor/broker who assumes risk in the transaction for the … seller, and the agent needs to be compensated for their time, knowledge, and experience,” said Mike Zschunke, a Berkshire Hathaway associate broker in Arizona.
| State | Avg. listing fee |
|---|---|
| Alabama | 2.77% |
| Alaska | 2.65% |
| Arizona | 2.74% |
| Arkansas | 2.73% |
| California | 2.61% |
| Colorado | 2.91% |
| Connecticut | 2.89% |
| Delaware | 2.73% |
| Florida | 2.65% |
| Georgia | 2.88% |
| Hawaii | 2.65% |
| Idaho | 2.88% |
| Illinois | 2.60% |
| Indiana | 2.69% |
| Iowa | 2.93% |
| Kansas | 2.93% |
| Kentucky | 2.70% |
| Louisiana | 2.84% |
| Maine | 2.76% |
| Maryland | 2.74% |
| Massachusetts | 2.89% |
| Michigan | 3.05% |
| Minnesota | 3.12% |
| Mississippi | 2.73% |
| Missouri | 2.90% |
| Montana | 2.88% |
| Nebraska | 2.93% |
| Nevada | 2.88% |
| New Hampshire | 2.76% |
| New Jersey | 2.59% |
| New Mexico | 2.78% |
| New York | 2.78% |
| North Carolina | 2.83% |
| North Dakota | 2.93% |
| Ohio | 3.14% |
| Oklahoma | 2.78% |
| Oregon | 2.65% |
| Pennsylvania | 2.75% |
| Rhode Island | 2.76% |
| South Carolina | 2.67% |
| South Dakota | 2.93% |
| Tennessee | 2.75% |
| Texas | 2.82% |
| Utah | 2.88% |
| Vermont | 2.76% |
| Virginia | 2.59% |
| Washington | 2.75% |
| Washington, D.C. | 2.95% |
| West Virginia | 2.73% |
| Wisconsin | 3.27% |
| Wyoming | 2.88% |
| National average | 2.77% |
Berkshire Hathaway fees for buyers
Berkshire Hathaway fees for buyers are also negotiable and can vary by office. Typically, the buyer’s agent fee is 2.5–3% of the home’s final sale price, with a national average of 2.67%.
Buyer’s agent services include:
- Finding properties that match your criteria and budget
- Booking showings to tour homes
- Learning more about a house by contacting the listing agent
- Helping you determine a home’s fair market value
- Negotiating with the seller and their agent
- Attending the home inspection
- Representing you to the seller, listing agent, and real estate attorney
- Attending the final property walk-through
- Coordinating the closing process
Traditionally, the seller has paid the buyer’s agent commission and advertised the rate in the home listing. But thanks to a 2024 lawsuit settlement with the National Association of Realtors (NAR), home buyers are now responsible for their agent’s fees.[11]
The real estate commission changes mean home buyers now negotiate the fee directly with their agent. They must also agree to the fee in writing — a move that 41% of those who support the change say will increase fairness and transparency in real estate transactions.
Many sellers still cover the buyer’s agent fees through seller concessions. The buyer would then pay the realtor fees that these concessions don’t cover.
“I let (the seller) know upfront that they will most likely be asked to pay buyer agent fees and to be ready for it, but let’s make them ask for it,” Zschunke said.
“I personally have not seen any change in overall compensation. Just the fact that we are required to have more documentation stating that the conversation took place.”
| State | Avg. buyer’s agent fee |
|---|---|
| Alabama | 2.91% |
| Alaska | 2.57% |
| Arizona | 2.70% |
| Arkansas | 2.68% |
| California | 2.57% |
| Colorado | 2.83% |
| Connecticut | 2.56% |
| Delaware | 2.68% |
| Florida | 2.71% |
| Georgia | 2.77% |
| Hawaii | 2.57% |
| Idaho | 2.79% |
| Illinois | 2.58% |
| Indiana | 2.66% |
| Iowa | 2.69% |
| Kansas | 2.69% |
| Kentucky | 2.71% |
| Louisiana | 2.59% |
| Maine | 2.53% |
| Maryland | 2.39% |
| Massachusetts | 2.64% |
| Michigan | 2.98% |
| Minnesota | 2.63% |
| Mississippi | 2.68% |
| Missouri | 2.87% |
| Montana | 2.79% |
| Nebraska | 2.69% |
| Nevada | 2.79% |
| New Hampshire | 2.53% |
| New Jersey | 2.33% |
| New Mexico | 2.82% |
| New York | 2.58% |
| North Carolina | 2.63% |
| North Dakota | 2.69% |
| Ohio | 2.73% |
| Oklahoma | 2.82% |
| Oregon | 2.57% |
| Pennsylvania | 2.62% |
| Rhode Island | 2.53% |
| South Carolina | 2.67% |
| South Dakota | 2.69% |
| Tennessee | 2.67% |
| Texas | 2.82% |
| Utah | 2.79% |
| Vermont | 2.53% |
| Virginia | 2.76% |
| Washington | 2.58% |
| Washington, D.C. | 2.50% |
| West Virginia | 2.68% |
| Wisconsin | 2.44% |
| Wyoming | 2.79% |
| National average | 2.67% |
Average commission calculator
Home sellers could pay tens of thousands of dollars in real estate agent commission, making it their largest expense.
Our real estate commission calculator can help you prepare by estimating what you’ll pay. Simply enter your home sale price, state, listing agent’s commission, and the buyer’s agent commission (if you decide to cover it).
Are there fees besides the commission?
Realtor commissions are the only Berkshire Hathaway fees that sellers and buyers must pay. These agents work on commission only, and you’ll negotiate the rate directly with your agent before they perform any services.
How to get lower Berkshire Hathaway agent fees
Negotiate directly with an agent
According to a recent NAR study, only 22% of sellers discuss commission rates with their agent and successfully negotiate a lower fee.[12] But because the commission fee for Berkshire Hathaway agents is negotiable, don’t be afraid to try for a lower rate.
The agent’s flexibility will likely depend on their office. Most will probably stay in the standard 2.5–3% range. If they can lower it, they may only do so by about half a percent. Be sure to negotiate the rate before signing a listing agreement, which will specify the agreed-upon fee.
Use these negotiation strategies to increase your chances of success:
- Find out the local commission rates. Commission rates differ depending on the state, city, or neighborhood. Do your homework so you can negotiate with confidence.
- Understand your leverage. You may have more room to negotiate if your home is priced high or in a desirable location — especially in a challenging housing market.
- Talk to multiple agents. Different agents and brokerages will have unique pricing and service models, so interview a few potential agents to find one that meets your needs.
- Make home improvements. Simple updates, such as repainting or landscaping, can make your home more appealing and easier to sell, which may encourage agents to lower their rates.
- Create value for the agent. Think about how you can reduce your agent’s workload or costs, such as by skipping open houses or 3D tours.
- Work with an experienced agent. Experienced agents with a more favorable Berkshire Hathaway commission split may be more willing to negotiate a lower rate because they’ll keep more commission from the sale.
- Use one agent for two transactions. By helping you sell one home and buy another, the agent earns a higher total commission, so they’re more likely to reduce their rate.
» Read our in-depth guide to negotiating realtor fees.
Find a low-commission agent
Some Berkshire Hathaway agents have already agreed to lower commission rates. Clever Real Estate has negotiated 1.5% rates with realtors from reputable national firms, including Berkshire Hathaway. You’ll pay half the typical rate for the same traditional services.
Saving on realtor commission fees can be significant. A 3% commission on a $500,000 home would be about $15,000, while a 1.5% commission cuts that in half to $7,500.
- Answer 5 simple questions about your sale
- Get matched with 2 to 3 top local agents in minutes
- Choose the best fit and save up to 50% on listing fees
What is the Berkshire Hathaway commission split?
Some sources list the Berkshire Hathaway commission split as starting at 60/40, with 60% of the commission from a sale going to the agent and 40% going to the brokerage.
Experienced Berkshire Hathaway agents with high sales volumes can negotiate more favorable splits of 80/20 or even 90/10 in some cases.
Ultimately, the Berkshire Hathaway commission split is negotiated between the agent and the broker, and it may be affected by other factors like the region where the broker is located.
Here’s what a 60/40 split would look like: A Berkshire Hathaway agent sells a home for $500,000 for a 3% realtor fee ($15,000). The agent gets to keep $9,000, and they pass on $6,000 to Berkshire Hathaway.
But why would an agent give up a percentage of their commission? Most individual realtors are only able to close deals by partnering with a brokerage, like Berkshire Hathaway, as they are legally required to work under a licensed broker.
In addition to overseeing deals, there are additional perks that brokers typically offer their agents. Realtors working under a brokerage often get access to marketing materials, tech tools, sales resources, and even office space in some cases.
Because of this, commission splitting is a standard practice in real estate that allows both parties to share in the profits of a sale.
» LEARN: How do realtors get paid?
Other Berkshire Hathaway fees for agents
Royalty fees
Berkshire Hathaway charges an ongoing 6–7% royalty fee on profits. This is typical since most major franchises charge a fee to their brokers, and it is the responsibility of the broker to collect and pay this fee.
The franchise fee is usually deducted from the commission before it is split between the broker and the agent.
For example, if the commission is $10,000, then $700 (7%) would be deducted for the royalty fee, and the remaining $9,300 would be split between the broker and the agent.
Monthly fees
Other Berkshire Hathaway fees for agents can be $295–625 per transaction, depending on the office and location.[13] This fee can add up for high-performing realtors.
FAQ
How much a Berkshire Hathaway real estate agent makes depends on their commission rate, commission split with their broker, and local market.
Berkshire Hathaway agents may start with a 60/40 commission split, meaning that they keep 60% of their commission and pass the other 40% along to the Berkshire Hathaway broker.
This split can change over time and become more favorable for the agent if their sales increase and they gain more experience.
No — Berkshire Hathaway agents get paid entirely by commission. This can be a serious motivator for agents who have confidence in their ability to sell.
Because Berkshire Hathaway specializes in luxury real estate, the amount that agents could potentially earn from their commissions is much higher than it would be if they were selling starter or middle-class homes.
Berkshire Hathaway doesn’t deal exclusively with high-end property, but it does make up the bulk of its business.
While Berkshire Hathaway has a favorable starting commission split of 60/40 for new agents, it can be difficult to sell luxury real estate with little to no experience.
Agents with other brokers may make less money per sale, but they’ll be in a better position to learn the ins and outs of the complicated real estate transaction process before jumping into a specialized form of real estate.
Berkshire Hathaway has a global network of over 45,000 real estate agents in more than 1,400 offices.
Related reading
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