In most home sales, the seller covers the realtor fees for both their listing agent and the buyer's agent. Each agent typically receives 2.5–3% of the home's sale price, for a total commission rate of 5–6%.
So, if your home sells for $500,000 and you pay each agent 3%, the realtor fees would cost $30,000 total.
But "who pays" isn't the whole story. The seller writes the check at closing, yet buyers fund it indirectly through the sale price — and since the 2024 NAR settlement, the buyer's agent fee is now negotiated deal by deal instead of being set by the seller.[1]
Realtor fees are the single biggest cost of selling a home, and they're negotiable. Companies like Clever Real Estate pre-negotiate 1.5% listing fees with top local agents, saving sellers about $7,000 without giving up full service. Find the best 1.5% agents near you, and save thousands in realtor fees.
Who actually pays realtor fees in a home sale?
The seller usually pays all realtor fees in a home sale, covering the commissions for both the listing agent and the buyer's agent.
Who's legally obligated
The seller signs a listing agreement that contractually obligates them to pay their listing agent — typically 2.5–3% of the sale price.
Since the August 2024 NAR settlement, buyers also sign a buyer-broker agreement obligating them to pay their own agent. That fee can be transferred to the seller via concession in the offer, but the buyer is legally on the hook if the seller refuses to cover it.
Who writes the check at closing
In most deals, the seller still writes the check. The title company deducts the full commission from the seller's proceeds at closing and pays each brokerage directly — the listing brokerage gets its half, the buyer's brokerage gets its half. The seller never sees that money.
That's been the default for decades. The NAR settlement didn't ban it; it just made the buyer-side portion negotiated case by case.
In Palm Beach County, Florida, agent Sharon Ross sees the post-settlement shift playing out in plain terms: "Houses are sitting much longer for sale now, and buyers expect seller concessions." Her advice to sellers — be willing to offer them, or the house sits too long.
One warning before you try to save money by cutting the buyer’s-agent fee: it can backfire. Kate Wilhelms, director of marketing and operations at Gateway Realty Group in St. Louis, says the sellers who resist the most “are the ones who misheard ‘you don’t have to pay anymore.’ Decreasing buyer-side compensation doesn’t really save money — on the contrary, it kills deals in the background.” A concession that scares off buyer-agent showings can cost you far more than the 2–3% you were trying to trim.
Who actually funds the commission
Even when the seller offers to pay via a seller concession, the buyer funds it through the sale price.
On a $400,000 home with a 5.5% total commission, $22,000 comes out of the seller's proceeds. But the home was almost certainly priced with that commission baked in. A seller netting $400,000 from the deal would list closer to $423,000 to absorb the agent fees. Buyers fund it through their mortgage and pay it back over 30 years with interest.
💼 Impact of the NAR lawsuit settlement
In 2024, the National Association of Realtors (NAR) settled a lawsuit that changed how buyer's agent fees are handled.[2]
Key outcomes of the settlement include the following:
- Listing agents can no longer advertise buyer’s agent fees in MLS listings. This change shifts the responsibility to buyers and their agents to negotiate fees directly — rather than the seller dictating the buyer’s agent’s compensation.
- Buyer’s agency agreements are mandatory. Before representing clients or showing properties, buyer’s agents must obtain a signed agreement detailing the services and fees. This mandate aims to increase transparency for buyers.
- Sellers in most markets still concede. In practice, sellers in most markets still concede 2–3% to attract buyer-agent showings. The negotiation is just more explicit now. But the rate is now part of the offer back-and-forth, not a precondition.
Buyer-broker agreements: what to watch for
The buyer-broker agreement is the contract that obligates you to pay your buyer's agent if the seller doesn't cover it. Post-NAR, you can't tour homes with an agent without one.
What it is
It's a service agreement — the buyer hires the agent, and the agent earns a commission when the buyer closes on a home.
The contract specifies the commission rate, the duration of the relationship, the geographic and property-type scope, and what happens if the seller's offered concession comes in below the agreed rate. That last clause is the one most buyers miss.
The “make the seller pay” trap
Some agents tell buyers to sign at 3% with the assurance that “the seller will pay anyway.” That's true until it isn't.
Here's the math. You sign a buyer-broker agreement at 3% on a $500,000 home — a $15,000 commitment. The seller offers a 2% concession in the deal — $10,000. You're on the hook for the $5,000 gap unless you renegotiate with your agent or walk from the deal.
This isn’t hypothetical. Ashley Oshinsky watched it play out with her own buyers:
Before you sign, ask the agent to specify in writing what happens if the seller's offer comes in below your agreement rate.
Clauses to check before signing
These are the clauses to read carefully:
- Duration. Push back on anything longer than 90 days for a single transaction. Refuse open-ended exclusivity.
- Geographic scope. Should be limited to your home-search area, not the whole state.
- Property-type scope. Some agreements exclude FSBO listings and new construction. If you're considering either, confirm coverage in writing.
- Termination clause. Must include a way out if the relationship isn't working. At-will is best.
- Compensation terms. Explicit on what happens if the seller's concession is less than the agreed rate.
How much do realtors charge?
Each realtor typically charges 2.5–3% of the home's purchase price. The national average commission rate is 2.88% for listing agents and 2.82% for buyer's agents, based on a February 2026 survey of 533 real estate agents nationwide.
Sellers often pay both fees, so their realtor fees often total 5–6%, with a nationwide average of 5.70%.
Here's what that looks like on a $500,000 home sale:
| Commission rate | Cost on a $500,000 home | |
|---|---|---|
| Listing agent | 2.5–3% | $12,500–15,000 |
| Buyer’s agent | 2.5–3% | $12,500–15,000 |
| Total realtor fees | 5–6% | $25,000–30,000 |
Even at the top of the market, the rate isn’t fixed. Rene Perez Jr., managing broker of ContextRE Inc. in the San Francisco Bay Area, recently sold a $4.38 million home in San Jose where the buyer’s agent requested a 3% commission — about $131,000.
“Conceding that amount was unnecessary,” Perez says. He counseled his sellers to counter at 2%, and the buyers accepted — still roughly $87,000 on one transaction, but about $44,000 less than the original ask. His blunt read on why so many sellers overpay: “The industry is based on fear.” Sellers, he says, hear from friends and other agents that they won’t be able to sell unless they concede — and most never test whether that’s true.
Average realtor commission by state
Realtor fees vary by state. Several regional factors impact commission rates, such as:
- Home sale prices
- Market trends
- Supply and demand
- Average time to sell
- Marketing expenses
- Cost of living
- Your property's characteristics (e.g., location, condition)
Find the average realtor fees in your state:
| State | Total commission | Buyer commission | Seller commission |
|---|---|---|---|
| Alabama | 5.96% | 3.00% | 2.96% |
| Alaska | 5.52% | 2.78% | 2.73% |
| Arizona | 5.82% | 2.92% | 2.90% |
| Arkansas | 5.66% | 2.84% | 2.82% |
| California | 5.47% | 2.74% | 2.73% |
| Colorado | 5.70% | 2.73% | 2.98% |
| Connecticut | 5.56% | 2.67% | 2.90% |
| Delaware | 5.66% | 2.84% | 2.82% |
| Florida | 5.57% | 2.82% | 2.75% |
| Georgia | 5.66% | 2.86% | 2.80% |
| Hawaii | 5.52% | 2.78% | 2.73% |
| Idaho | 5.70% | 2.73% | 2.98% |
| Illinois | 5.54% | 2.72% | 2.81% |
| Indiana | 5.50% | 2.85% | 2.65% |
| Iowa | 5.84% | 2.88% | 2.96% |
| Kansas | 5.84% | 2.88% | 2.96% |
| Kentucky | 5.66% | 2.84% | 2.82% |
| Louisiana | 5.66% | 2.84% | 2.82% |
| Maine | 5.56% | 2.67% | 2.90% |
| Maryland | 5.41% | 2.64% | 2.77% |
| Massachusetts | 5.56% | 2.67% | 2.90% |
| Michigan | 6.20% | 3.11% | 3.09% |
| Minnesota | 5.84% | 2.88% | 2.96% |
| Mississippi | 5.66% | 2.84% | 2.82% |
| Missouri | 5.93% | 2.98% | 2.96% |
| Montana | 5.70% | 2.73% | 2.98% |
| Nebraska | 5.84% | 2.88% | 2.96% |
| Nevada | 5.70% | 2.73% | 2.98% |
| New Hampshire | 5.56% | 2.67% | 2.90% |
| New Jersey | 5.20% | 2.50% | 2.70% |
| New Mexico | 5.82% | 2.92% | 2.90% |
| New York | 5.69% | 2.76% | 2.93% |
| North Carolina | 5.52% | 2.73% | 2.80% |
| North Dakota | 5.84% | 2.88% | 2.96% |
| Ohio | 5.90% | 2.80% | 3.10% |
| Oklahoma | 5.82% | 2.92% | 2.90% |
| Oregon | 5.52% | 2.78% | 2.73% |
| Pennsylvania | 5.77% | 2.80% | 2.97% |
| Rhode Island | 5.56% | 2.67% | 2.90% |
| South Carolina | 5.88% | 2.97% | 2.91% |
| South Dakota | 5.84% | 2.88% | 2.96% |
| Tennessee | 6.05% | 3.10% | 2.95% |
| Texas | 5.88% | 2.95% | 2.93% |
| Utah | 5.70% | 2.73% | 2.98% |
| Vermont | 5.56% | 2.67% | 2.90% |
| Virginia | 5.50% | 2.75% | 2.75% |
| Washington | 5.90% | 3.15% | 2.75% |
| Washington, D.C. | 4.50% | 2.50% | 2.00% |
| West Virginia | 5.66% | 2.84% | 2.82% |
| Wisconsin | 5.84% | 2.88% | 2.96% |
| Wyoming | 5.70% | 2.73% | 2.98% |
| National average | 5.70% | 2.82% | 2.88% |
| 💰 See how much you could save on commission in your state. Compare 1.5% agents near you | |||
What do realtor fees cover?
The fees compensate agents for the time they devote to your real estate transaction.
For buyers, agents typically provide the following services:
- Educating you on the home-buying process and market trends
- Connecting you to lenders for pre-approval and financing
- Finding properties that meet your needs and budget
- Scheduling showings and attending open houses
- Writing and submitting offers
- Assisting with paperwork and explaining legal terms
- Helping you set up inspections and the appraisal
- Negotiating deals and facilitating closing
For sellers, realtor fees typically cover services such as:
- Offering pre-listing advice, such as improvements to enhance the property value
- Analyzing market conditions to time the sale effectively
- Researching comparative sales with a CMA report and developing a pricing strategy
- Arranging for high-quality photos, virtual tours, and 3D home modeling
- Crafting a compelling listing description
- Listing the property on the multiple listing service (MLS)
- Marketing your property listing
- Networking with other realtors to find potential buyers
- Negotiating deals and facilitating closing
Always check with your agent up front to learn which services they do and don't include in their standard fees. This way, you and your agent will be on the same page.
Closing costs vs. commissions
Closing costs are the bucket of all transaction fees, typically 2–6% of the sale price. Commissions are one line item within seller-side closing costs — not a separate category.
Here's how the costs split between buyer and seller:
| Closing costs (buyer side) | Closing costs (seller side) |
|---|---|
| Loan origination | Realtor commissions |
| Title insurance | Transfer taxes |
| Escrow fees | Prorated property tax |
| Recording fees | Title insurance (in some states) |
| Prorated taxes | Recording fees |
For the full breakdown of seller-side closing costs, see our cost-to-sell-a-house guide.
Are realtor fees negotiable?
Yes, realtor fees are negotiable. But success can vary widely depending on factors such as market conditions, home demand, and the realtor’s willingness to adjust their rates.
Here’s the thing most sellers miss, though: the hard part is asking. In our July 2026 survey of 500 recent home sellers, just 33% of those who used an agent tried to negotiate their commission — but of the sellers who did ask, 93% got at least some reduction. Only 7% ran into an agent who wouldn’t budge at all. The problem is that a quarter of sellers (26%) didn’t even know the rate was negotiable; they assumed it was fixed.[3]
Michael Perna, who leads The Perna Team in Metro Detroit and has sold more than 8,000 homes in 24 years, sees the same pattern from the agent’s side.
If you're considering negotiating realtor fees, prepare by understanding the typical rates in your local market and evaluating your leverage (e.g., having a highly desirable home that will sell fast, using the same realtor to buy and sell a house).
What doesn’t work: claiming “another agent will do it for less” without proof, threatening, or trying to renegotiate after signing.
Perna’s bigger point is that sellers underestimate how much is on the table: “The biggest misconception is that fees aren’t negotiable. Every fee is negotiable — the commission, who pays the commission, who pays for the title policy, the transfer tax. Every area has fees ‘commonly paid by’ the seller or buyer. But commonly isn’t law. Everything’s a negotiation.”
One tactical note from Chuck Vander Stelt, a broker at Quadwalls Real Estate in Northwest Indiana: don’t spend your leverage on the wrong side of the deal.
In other words, push hardest on your own listing fee — that’s where a discount does the least damage to your sale.
Realtor fee negotiation ideas
Some negotiation tactics are more successful than others.
What works:
- Higher home value. Above $500,000, the commission dollar amount becomes significant enough that a half-point reduction is real money — and worth fighting for.
- Selling and buying with the same agent. Most agents will discount on a “double-end” deal where they earn on both sides.
- Move-in ready, easy listings. Less work justifies a lower commission. Be honest about whether the home is one of these.
- Newer or volume-driven agents. Newer agents are often willing to offer discounts to build their portfolios. Brokerages like eXp Realty are built around volume and tend to be more flexible than boutique firms.
- Multiple agent quotes. Get listing presentations from three or four agents. Let them compete.
What doesn't work: claiming “another agent will do it for less” without proof, threatening, or trying to renegotiate after signing.
Want the step-by-step? Our negotiating realtor fees guide has the full playbook.
How to reduce realtor fees
Negotiating realtor fees isn't the only way to save on realtor commission. Here are two alternative approaches.
Use a discount brokerage
One of the best ways for home sellers to save money on realtor fees is to work with a discount real estate brokerage.
These companies offer built-in savings on listing fees — no negotiation necessary. In addition, their agents provide all the same services that traditional realtors offer.
Here are the best discount brokerages for home sellers:
The top discount brokerages have agents who provide the same support and service as traditional realtors.
Sell for sale by owner (FSBO)
When you sell your home without a realtor, you don't need a listing agent, which means you can save on listing fees (2.5–3%), although you'll still likely need to pay a buyer's agent fee.
Remember that selling FSBO requires you to handle all the tasks a listing agent typically manages, which can be challenging and time-consuming. Also, many FSBO sellers just aren't successful. Consider these statistics:
- FSBO sales represent only 5% of all home sales.[4]
- FSBO homes sell for a median of $360,000, well below the median sale price of $425,000 for all homes.[4]
So, while selling FSBO can save you money on fees, it's crucial to weigh that benefit against the work you'll have to do and the potential for a lower sale price.
What if the seller won't cover your buyer's agent fee?
You have options, roughly in order of increasing pain.
Your real options
- Ask for a partial concession. Even a 1–1.5% reduction of the buyer's agent fee covers most of the gap. Sellers in slow markets often agree.
- Bake it into the offer as a closing-cost credit. Frame it as a closing-cost concession, not a commission rebate, because that's how the form treats it. Some lenders cap the credit; check first.
- Negotiate down with your own agent. On higher-value homes, many agents will accept a lower commission rather than lose the deal.
- Walk away. If the home is overpriced AND the seller won't budge on commission, that's two red flags.
Frequently asked questions about realtor fees
They come out of the seller's proceeds at closing. The title company deducts the full commission from the seller's net, then pays each brokerage directly — listing brokerage gets its half, buyer's brokerage gets its half. Each brokerage then splits with the individual agent according to their internal commission split.
The national range is 5–6% total, split between the listing and buyer's agents. State averages vary; see the state table above for the breakdown. Above $500,000 in home value, the rate is genuinely negotiable. Below that, your leverage is thinner. “Fair” depends on the level of service — a flat-fee MLS listing and a full-service agent aren't comparable products.
The dual-pay model emerged so that cash-poor buyers could afford to use representation. Post-NAR, it's shifting — buyer-agent fees are now negotiated separately. But sellers still typically cover both because (a) it incentivizes more buyer-agent showings, and (b) buyers fund it indirectly through the sale price anyway.
The builder typically pays. Most builders have an internal sales team and pay buyer-agent commissions from their marketing budget — usually 2–3%. Important: most builders require your buyer's agent to be present at your first visit. If you walk into the model home alone, you may forfeit representation. Tell your agent before you tour.
Check your termination clause. Most include a “for cause” exit (agent not performing) or a notice period — commonly 30 days. Some include a “tail” clause requiring you to pay commission if you buy a property the agent showed you within X months of terminating. Read this clause before you sign.
Methodology
This guide draws on two separate proprietary surveys plus interviews with licensed agents. Here’s exactly where each number comes from.
National commission averages. Average commission rates were gathered in a February 2026 survey of 533 active real estate agents across the United States. The survey asked about typical commission rates for buyer and seller agents in local markets. We asked agents about the typical buyer-side and seller-side commission rates in their local markets and averaged the responses nationally.
State-by-state averages. The state table is not a slice of the national survey. Each state figure comes from its own survey of local agents licensed in that state, conducted on a rolling schedule and updated as new responses come in. Because the state surveys are fielded at different times and reflect local market conditions, a given state’s average won’t always move in lockstep with the national number, and the two datasets can carry different “as of” dates. Each state’s full sample size, survey date, and sourcing are documented on that state’s dedicated page.
Seller behavior and attitudes. Data on how sellers negotiate, what they know about the 2024 NAR settlement, and how they view discount brokers comes from a July 2026 survey of 500 U.S. adults who sold a home they lived in within the past two years, fielded through Pollfish. Percentages are based on the relevant question base (for example, negotiation stats are based on the 366 respondents who sold with an agent).
Expert input. Direct quotes come from licensed real estate brokers and agents we interviewed directly in Q3 2026, each identified by name, title, brokerage, and market.
Why trust us
Real Estate Witch is a real estate research and education publication that has helped millions of home buyers and sellers understand what they’re paying and how to pay less. We’re owned by Clever Real Estate, a nationwide low-commission brokerage service (a relationship we disclose wherever Clever appears in our comparisons).
Who wrote and edited this guide
This article was written by Steve Nicastro and edited by Jon Stubbs.
Steve is Real Estate Witch’s Content Lead and a former licensed real estate agent in Charleston, SC, where he closed more than $6 million in transactions. He spent six-plus years as a personal finance writer at NerdWallet, and his work has been cited by the Associated Press, USA Today, and U.S. News. His focus areas include real estate commissions, selling without an agent, and finding the right realtor.
Jon Stubbs has written and edited real estate and personal finance content for more than 20 years, with a focus on the costs of buying and selling a home. He’s sold a home himself without an agent, and his commission research has been referenced by outlets including CNN and The New York Times.
How we collect our data
Our commission figures come from proprietary surveys of active, licensed real estate agents: a February 2026 survey of 533 agents nationwide for the national averages, plus separate state-level surveys behind each state’s page.
Our data on seller behavior comes from a July 2026 survey of 500 U.S. adults who sold a home in the past two years. We pair that data with primary sources like the National Association of Realtors and with direct interviews of practicing agents.
The agents we interviewed for this guide
- Ashley Oshinsky — Broker/Owner, Higher Living Real Estate (Metro Detroit, MI)
- Michael Perna — The Perna Team (Metro Detroit, MI); 24 years, 8,000+ homes sold
- Rene Perez Jr. — Managing Broker, ContextRE Inc. (San Francisco Bay Area, CA)
- Kate Wilhelms — Director of Marketing & Operations, Gateway Realty Group (St. Louis, MO)
- Chuck Vander Stelt — Broker, Quadwalls Real Estate (Northwest Indiana)
Our editorial process
Every guide is written or reviewed by someone with direct real estate experience, fact-checked against primary sources, and updated as markets and rules change. We don’t let advertising relationships influence our ratings or recommendations, and we disclose any conflict of interest (including our ownership by Clever Real Estate).
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