Real estate: Location, location, commission

Market conditions can drive compensation practices

In today’s rugged economy, location can be a key driver in real estate commission rates throughout California, say agents and brokers across the state.

Commissions can run up to 7 percent in regions saddled with foreclosures and sales of bank-owned homes, for example, while a more typical range in the luxury market of Pacific Palisades is 5 percent to 6 percent, and in some rural areas agents report commission rates on the order of 5 percent, said agents and brokers interviewed for this article.