Are you ready to unlock your earning potential in the Louisiana real estate market? Whether you’re an aspiring agent looking to build a new career or a homeowner curious about the costs of selling, understanding real estate commissions is your first step toward success.
In this guide, we’ll break down everything you need to know about the average real estate commission in Louisiana—from how rates are determined to the impact of recent industry changes. Let’s dive in and explore how you can thrive in this dynamic market.
Key Takeaways
- Know the Average: The average real estate commission rate in Louisiana is 5.2%, slightly below the national average.
- Understand the Split: Commissions are typically shared between the buyer’s and seller’s agents and their respective brokerages.
- Stay Informed: Recent legal settlements have changed how commissions are negotiated and disclosed, specifically for buyer’s agents.
- Maximize Your Income: Real estate offers unlimited earning potential; the more transactions you close, the more you earn.
How Real Estate Agent Commission Works in Louisiana
Real estate commissions are the lifeblood of the industry, fueling the careers of dedicated professionals across the state. Unlike a traditional salary, most agents work entirely on commission. This means your income is directly tied to your hard work and success, a model that has empowered agents since the 1950s.
Commission Structures and Splits
In a typical transaction, the commission is a percentage of the property’s final sale price. This total commission (often around 5-6%) is usually split four ways:
- Listing Brokerage
- Listing Agent
- Buyer’s Brokerage
- Buyer’s Agent
For example, let’s consider a $207,502 home, which is the average home value in Louisiana according to Zillow. Image a seller agreed to a 5.2% commission, and that the seller’s agent agreed to split that commission evenly with the buyer’s agent. When the home sells, the listing brokerage and buying brokerage would each receive $5,395 each. From there, the agents would be paid, according to their agreement with their brokerage.
The Impact of the NAR Settlement
You may have heard about the recent National Association of REALTORS® (NAR) settlement. This has brought significant changes to how commissions are handled.
- Decoupled Commissions: Listing agents can no longer advertise buyer agent compensation on the Multiple Listing Service (MLS).
- Negotiability: Commissions have always been negotiable, but these changes make that transparency even more critical.
- Buyer Agreements: Buyer’s agents must now enter into written agreements with their clients before touring homes, clearly outlining their compensation.
Despite these shifts, the demand for skilled real estate agents in Louisiana remains high. Navigating these changes is just another opportunity for you to demonstrate your value and expertise to clients.
Who Pays the Real Estate Commission in Louisiana?
Historically, the seller has paid the full commission for both agents, deducted from the sale proceeds at closing. While this is still a common practice, the landscape is evolving post-NAR settlement.
Changes in payment responsibilities
With new regulations, there is more flexibility—and complexity—in who foots the bill.
- Seller Concessions: Sellers may still choose to offer a concession to cover the buyer’s agent fee to attract more buyers.
- Buyer Responsibility: If a seller chooses not to offer compensation, the buyer may be responsible for paying their agent directly.
- Negotiation: Who pays what is now a key point of negotiation in the purchase offer.
Example:
Imagine a buyer wants to purchase a home in Baton Rouge. If the seller does not agree to pay the buyer’s agent commission, the buyer might include a clause in their offer asking the seller to credit them that amount at closing, or they might pay their agent out of pocket.
Average Real Estate Commission Rate in Louisiana
Knowledge is power. Understanding the numbers helps you set realistic income goals and build a solid business plan. According to recent data from Fast Expert, the average real estate commission in Louisiana is 5.2%.
Comparing to the national average
This rate is slightly lower than the national average, which often hovers around 5.57%. However, Louisiana’s unique market dynamics and affordable cost of living still make it an attractive place to build a real estate career.
Average Louisiana Real Estate Commission Rate by City
Location matters. Home values fluctuate significantly across the state, which directly impacts your potential commission check. Here is a look at what agents might earn on an average transaction in Louisiana’s most populated cities, based on a 5.2% commission rate.
| City | Average Home Value | Estimated Total Commission (5.2%) |
| New Orleans | $236,989 | $12,323 |
| Metairie | $315,941 | $16,429 |
| Kenner | $265,697 | $13,816 |
| Baton Rouge | $224,744 | $11,686 |
| Bossier City | $222,026 | $11,545 |
| Lafayette | $218,173 | $11,345 |
| Lake Charles | $199,558 | $10,377 |
| Monroe | $146,292 | $7,607 |
| Alexandria | $141,851 | $7,376 |
| Shreveport | $132,659 | $6,898 |
Source: Zillow Home Value Data (December 2025).
Factors Influencing Real Estate Commissions in Louisiana
While 5.2% is the average, your actual rate isn’t set in stone. Several factors can influence the final commission percentage on any given deal.
Market conditions
In a “hot” seller’s market where homes sell quickly with multiple offers, sellers might negotiate a lower commission rate because they perceive the agent’s job as easier. Conversely, in a buyer’s market where homes sit longer, sellers may offer higher commissions to incentivize agents to show their property.
Property type
- Residential: Typically follows the standard 5-6% model.
- Commercial: Commission structures can vary widely, sometimes using a graduated scale (e.g., 5% on the first $1M, 4% on the remainder) or flat fees.
- Vacant Land: Often commands a higher commission rate (sometimes up to 10%) because land can take much longer to sell and requires more marketing effort.
Agent experience
Top-producing agents with a proven track record may refuse to lower their rates, leveraging their expertise and marketing reach as justification. Newer agents might be more flexible to secure clients and build their portfolio.
Comparison of Louisiana Real Estate Commissions with Other States
How does Louisiana stack up against its neighbors? Understanding regional differences provides valuable context for your business. Here are the average commissions of nearby states, according to Fast Expert.
- Mississippi: Real estate commissions in Mississippi often hover around 5.62%.
- Texas: The average real estate commission in Texas is 6.0%.
- Florida: The average real estate commission in Florida is 5.53%.
Generally, Louisiana offers a balanced environment—accessible entry for new agents with property values in hubs like New Orleans that support healthy commissions.
Strategies for Negotiating Commissions
Real estate commissions are negotiable. Here are some simple strategies for earning a fair commission for the work you provide to your clients.
- Articulate Your Value: clearly explain why you are worth your fee. Highlight your marketing plan, negotiation skills, and past successes.
- Be Confident: Remember, you are a professional providing a complex service. Your expertise protects your client’s financial interests.
- Complete Training: Your future clients will hire you to negotiate the best deal on your behalf. Prepare for these encounters by earning a certification through the Real Estate Negotiation Institute (RENI). You can purchase a stand-alone course or get a discounted course plus all the CE you’ll need by purchasing a CE membership with Colibri Real Estate.
Frequently Asked Questions About Real Estate Commissions
Is the 6% commission standard dead?
There is no “standard” commission. Rates have always been negotiable. However, most residential real estate commissions have hovered around 6% for decades.
Can I negotiate the commission rate in Louisiana?
Absolutely. Commission rates are not set by law or any regulatory body. They are fully negotiable between the agent and the client.
Do I have to pay a commission if I buy a house?
Post-NAR settlement, you might. If the seller isn’t offering a concession to pay your agent, you will need to agree on a compensation fee with your buyer’s agent directly.
Start Your Path to Real Estate Success Today
The Louisiana real estate market is full of opportunity for those willing to seize it. With a clearer understanding of the average real estate commission in Louisiana, you can see the potential for a rewarding and lucrative career.
Don’t wait to build the future you deserve. At Colibri Real Estate, we are dedicated to leading people to achieve more and thrive in their careers.
Ready to get started? Explore our Louisiana pre-licensing courses and take the first step toward your new career today.
Disclaimer: This guide is for general informational purposes only, based on a September 2025 survey of Colibri Real Estate School alumni and publicly available industry sources. While Colibri Real Estate School strives for accuracy, we make no guarantees regarding the completeness, reliability, or applicability of the information. Earnings and outcomes vary widely based on factors like location, experience, and market conditions and should not be considered guarantees. This guide does not constitute professional advice. Users should consult additional sources for personalized guidance.
