Kentucky Real Estate Commission
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If you’re considering selling your property in Kentucky, you’re undoubtedly wondering how much real estate commissions will cost you. The average real estate commission in Kentucky is 5.7%, which is higher than the national average of 5.57% but still similar to the rest of the region. In this guide, we are going to lookup what the Kentucky real estate commission is, how to get the KY license, the cost, and the continuing education requirements before becoming a realtor.

How Real Estate Agent Commission Works

Average listing commission2.72%
Average buyer’s agent commission2.72%
Total average commission5.44%

A home sale is often handled by two real estate agents:

  • The seller’s agent (sometimes known as the listing agent) is the person who represents the home seller.
  • The buyer’s agent is the individual who represents the person who is purchasing the home.

According to our study, the average commission rate for listing agents is 2.72% of the final home price, while the average commission rate for buyer’s agents is 2.72%, for a total of 5.44%.

Who Pays Realtor Fees in Kentucky?

Home sellers in Kentucky pay real estate commission fees out of the total sale proceeds for both agents involved in a transaction. Offering to cover the buyer’s agent’s commission is a great way to entice agents to show your home to their clients.

Clever can connect you with a top listing agent in your region if you want to save money on commissions. You’ll pay only 1.5%, which means you’ll have more money in your pocket at the end of your sale.

How Much are Realtor Fees in Kentucky?

Kentucky’s average real estate commission is 5.44%, which is slightly higher than the national average of 5.37%. You will pay this out of the sale proceeds as the seller.

Fees are flexible and can vary from city to city. They alter throughout time as well, depending on market conditions. In reality, realtor fees in Kentucky have decreased from 5.8% in 2021 to 5.8% today.

This decline could be attributed to greater rivalry for business among Kentucky realtors, or to the abnormally hot seller market we’ve seen in recent years. However, it appears that the hot market is already behind us.

According to some experts, national housing sales could fall by 7-16% in 2023, although Kentucky may be able to prevent the drop. In fact, Louisville might see a combined sales and price increase of 14% in 2023. If this occurs, Kentucky real estate commission percentages are likely to remain unchanged.

Always consult with a local realtor — or many of them — to determine a suitable rate for your area.

How Real Kentucky Agents and Brokers Set Commission Rates

Kentucky realtors base their fees on a number of factors, including:

  • What’s competitive in the area
  • How much work it takes to sell the home
  • If it’s a seller’s or buyer’s market
  • If you’re a repeat customer

Most agents will not openly admit that their rates are changeable, but most of the agents we’ve spoken with concede that their rates are flexible – to a point.

Although there is considerable leeway, realtors use their fees to cover a variety of important costs, so they can only go so low. Their initial commitment includes not just time and effort, but also the following:

  • Taxes: Real estate agents must pay a self-employment tax of 15.3% on all commissions earned
  • Association dues and MLS fees: $250–650 annually
  • State license fees: $120–130 annually
  • Administrative staff: Assistants can help with bookkeeping, scheduling, and other day-to-day operations
  • Marketing costs: Professional photos, advertising, open houses, and staging

They demand a fair commission in exchange for all of that early labor and financial investment. Also, keep in mind that the listing agent does not receive the entire commission. They must split it with the buyer’s agent and their broker, which means they will most likely only receive roughly 1.36%.

How Can I Save on Realtor Fees in Kentucky?

There are a few ways to save on realtor costs that may need some creative thinking:

  • Negotiate with a traditional real estate agent or broker
  • Work with a discount real estate broker
  • Sell without a realtor

Negotiate with a traditional realtor

Kentucky agents may agree to a smaller commission if their efforts are reduced or if they can rely on you for recurring business. If you shop around with multiple agents, you’ll have an idea of how much real estate agents make in your area, which you may use to negotiate the best potential price.

Negotiating may be awkward and unpleasant. If you’d prefer to avoid it, Clever Real Estate can help you choose an agent. They’ve already agreed to a 1.5% listing fee with seasoned Kentucky agents, so you don’t have to.

Work with a discount real estate broker

Some brokerages provide upfront discounts on realtor fees. These businesses can help you save money, but some come with hazards or poor customer service. Do your homework to comprehend what you’ll get for the lower price.

Sell without a realtor

Selling without a realtor is the ultimate method to save money on realtor fees, but we don’t advocate it for most Kentucky sellers. You will not have to pay a listing commission, but you will have to complete all of the work of a listed agent on your own. Furthermore, you’ll want to pay the entire buyer’s agent commission to encourage other agents to show your home to their clients.

How to Get Your Kentucky Real Estate License

Obtaining your Kentucky Real Estate License is the first step toward becoming a Kentucky real estate agent. This procedure can now be completed almost entirely online. The Kentucky real estate licensing exam must still be taken in person, but the remainder of the procedure can be completed fully online! Let’s take a short look at the things you require!

Kentucky Real Estate License Requirements

The following are the qualifications for becoming a real estate agent in Kentucky:

  • Be a citizen of the United States or a lawfully admitted alien
  • Be 18 years of age or older
  • Must have obtained a high school diploma or equivalency certificate (GED)

Now let’s go over the process of getting your Kentucky real estate license:

Step #1. Real Estate Pre-Licensing Course

To begin, you must successfully finish a 96-hour pre-licensing course. The majority of people opt to complete their pre-license education course online. Most online courses are self-paced and include study tools such as real estate practice examinations and flashcards. Some even offer a “guarantee” that if you complete their course, you will pass the exam on your first try. These advantages are entirely dependent on the education provider and package you select, so be sure to select the course that best meets your requirements.

Remember that the goal of these courses is to prepare you to pass your exam and become a better agent, not just to check a box and complete a requirement.

Step #2. Fingerprinting and Background Check

Following completion of the mandatory pre-licensing course, you must complete your fingerprints and background check. Before becoming a licensed real estate agent in Kentucky, the Kentucky Real Estate Commission requires all applicants to undergo a background check.

To begin, go to your nearest law enforcement office and get your fingerprints taken. It is advised that you get your fingerprints taken at a police station or sheriff’s office.

Step #3. Kentucky Real Estate License Exam

After you’ve finished your pre-license education, you’re ready to take the Kentucky Real Estate Exam. The examination costs $100 per attempt.

The Kentucky Real Estate Exam consists of 130 multiple-choice questions. There are 80 in the National section and 50 in the State part. You will have 240 minutes (4 hours) to finish the exam. The time for the National segment is 150 minutes (2.5 hours), and the time for the State section is 90 minutes (1.5 hours).

The Kentucky Real Estate Sales Associate Exam requires a score of 60/85 on the National section and 38/50 on the State section to pass.

Step #4. Real Estate License Application

The final step in obtaining a Kentucky real estate license is to submit your licensing application.

This application will cost you $130. The passing score report/license application will include a list of all materials that must be submitted to the Commission in order for a license to be issued. Fill out the application and return it to the Kentucky Real Estate Commission’s office with the necessary payment in the form of a cheque or money order. The application will be handled once all required documents are received.

Step #5. Application Review

After you pass your exam, all you have to do is wait for your background report to come back as a pass. This process should take roughly 1-2 weeks in most circumstances. Following that, you should receive an email from KREC with a licensing document.

Kentucky Real Estate Continuing Education Requirements

All actively licensed real estate agents in Kentucky must complete the following continuing education requirements each education cycle (every 2 years).

  • Complete 12 hours of continuing education approved by the commission.
  • Of the 12 hours, 6 must be in law, the other 6 can be elective.
  • 6 hours must be completed each year, credit will not be given if the same course is completed in the education cycle. 3 hours each year must be in law.
  • Completion of the continuing education requirement must be before December 31st of each calendar year.
  • If more than 6 hours of education are completed in the first year of the education cycle, the excess hours can roll over to the next year.
  • Licensees are not required to complete continuing education courses during the first 2 calendar years of initial license issuance in Kentucky.
  • The Kentucky Core Course is required to be completed once every 4 years. No other CE courses will substitute for the Core Course. 

What Commission Do Most Realtors Charge?

The typical standard commission is 6% of the purchase price of a home, divided equally (3%) between the buyer’s and seller’s agents. However, the average proportion has been decreasing over the years, and according to Clever, the average Realtor commission is 5.37 percent.

How Much Does the Average Realtor Make in KY?

According to Indeed user earnings, real estate brokers earn an average of $84,459 per year.

How Much Does It Cost to Get a Real Estate License in Kentucky?

The FBI criminal background check charge is $18 and the Kentucky Sales Associate exam fee is $100.

What Does the Kentucky Real Estate Commission Do?

According to Kentucky Revised Statutes, the Kentucky Real Estate Commission serves the public interest by regulating, inspecting, and licensing Kentucky real estate sales associates and brokers.

What State Has the Highest Paid Realtors?

The highest realtor salary in Connecticut is $47,384. The lowest realtor salary in Kansas is $23,427. Realtors earn an average of $38,290 per year in the United States. Realtors earn an average hourly wage of $18.41 in the United States.

How Much Do Top 1% Realtors Make?

Each real estate firm establishes its own criteria for top producers, but it’s safe to assume that to qualify, a top producer must sell at least one home per month. According to the BLS, top producers start at roughly $112,610 per year. 1 Mega-stars might earn up to $500,000 each year.

Is It Hard to Make 100K as a Real Estate Agent?

You can undoubtedly succeed as a real estate agent and earn $100,000 or more each year! In fact, 26% of real estate brokers earn more than $100,000 per year. While 10% earn more than $200,000 every year. So earning $100,000 a year as a real estate agent is not out of the question.


While Kentucky’s average real estate commission is 5.7%, this is only a starting point for talks. If you deal with a buyer’s agent, you may be able to negotiate a cheaper commission fee. However, keep in mind that a reduced commission implies the listing agent has less incentive to sell your house quickly and for top money.


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