Real estate commissions are fees paid to real estate agents for their services in helping to buy or sell a property. Typically, this commission is a percentage of the property's sale price, often ranging from 5% to 6%. This fee is usually split between the buyer's agent and the seller's agent, incentivizing both parties to work towards a successful transaction. These commissions are generally paid by the seller at closing, meaning the seller deducts the commission from the sale proceeds. Understanding real estate commissions is important for both buyers and sellers, as it impacts the overall cost of the transaction and the net profit from the sale of the property.