# Broker commission

The success fee a broker earns at closing, paid by the seller out of the price.

Buyers do not pay it directly but feel it in the asking price, and it explains why a broker pushes back hardest on the last few percent of a negotiation. A finder's fee is the opposite arrangement and worth telling apart. It buys an introduction instead of a process, and it is usually owed by whoever wanted the introduction, which on an off-market deal is the buyer. Agree the number and the trigger before the introduction, because afterwards the leverage has moved. Sellers should get the rate, the minimum, and the [tail period](https://searchspheresource.com/glossary/tail-period) in writing before signing an engagement, since the tail is what obliges them to pay a commission on a buyer who appears months after the listing ends. The largest listing marketplace puts the typical range at ten to fifteen percent of the price up to about a million dollars and a reduced percentage above that, with flat fees common at the smallest end. Your [engagement letter](https://searchspheresource.com/glossary/engagement-letter) is still the only rate that binds you.

In numbers: An 8% success fee on a $4M sale is $320,000, paid from the seller's proceeds at close.

Source: https://searchspheresource.com/glossary/broker-commission
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