Real estate agents typically receive a commission for their services when they help a client buy or sell a property. The commission is usually a percentage of the final sale price of the property and is split between the buyers agent and the sellers agent. The exact percentage of the commission can vary depending on the location of the property, the size of the property, and the experience of the agent. In Alabama, the average total real estate commission is 5.44%, which includes a 2.72% listing commission and a 2.72% buyers agent commission. The commission rate is typically negotiable, and there are no federal or state laws that set commission rates. However, its important to note that a lower commission could mean less advertising for the property, as the marketing dollars for a property generally come from the agents commission. All of the details about a real estate agents commission should be outlined in the contract that the client signs when they hire an agent.