I charge 4% for a full service listing of a home. A majority of real estate companies tend to ask 5 to 6%. The reason I charge 4% is that I pay 2.5% of that 4% to an agent who will bring a buyer. My services as the listing agent are actually 1.5%. Because I am the Broker and I keep my  overhead low, I am able to pass the savings onto my clients! Here is how it goes:
Home PriceHarvey Homes fee (at 4%)    Typical Real Estate company (at 6%)         Savings that Harvey Homes will put back into
  your pocket

$250,000$10,000$15,000$5,000

$300,000$12,000$18,000$6,000

$400,000$16,000$24,000$8,000

$500,000$20,000$30,000$10,000

$600,000$24,000$36,000$12,000

$700,000$28,000$42,000$14,000

$800,000$32,000$48,000$16,000

$900,000$36,000$54,000$18,000

$1,000,000    $40,000$60,000$20,000
Here is how the commission is divided up in the typical real estate transaction. This is based on a $400,000 home.
Harvey Homes keeps as the listing Agent      What Harvey Homes Pays to a Buyer's Agent to bring a buyer      Harvey Homes total commission
  1.5%= $6,000+2.5%=$10,000=$16,000