What factor typically influences the commission paid to real estate agents?

The commission paid to real estate agents is typically influenced by the sale price of the property. This is because commissions are usually calculated as a percentage of the final sale price. The higher the sale price, the greater the commission the agent earns. Most real estate transactions involve a standard commission rate, often ranging between 5% to 6% of the sale price, which means that as the value of the property increases, so does the commission.

While factors like the time taken to sell the property, the number of agents involved, and the location may have ancillary effects on negotiations and market strategies, they do not directly influence the commission structure as clearly as the sale price does. The sale price provides a straightforward calculation for determining commission, making it a fundamental factor in agent compensation.