Negotiating realtor fees is a key focus in real estate, especially after the recent National Association of Realtors (NAR) lawsuit. The settlement introduced more commission transparency, giving home sellers and buyers opportunities to save money but also creating challenges as they navigate the changes.
There are two strategies to negotiating realtor fees following the NAR lawsuit, says Glenn Phillips, CEO of Lake Homes Realty.
"You can find agents who offer low commissions but limited value," says Phillips. "The second, better strategy, is to work with a skilled agent and make their job easier by presenting a picture-perfect home and managing tasks they’d otherwise handle. This gives the agent something of value in exchange for negotiating their commission."
Experts agree that, if done right, negotiating realtor fees can save you thousands of dollars. But the process can be challenging, especially with some agents unwilling to budge.
Below, we break down the best tips provided by real estate experts on negotiating realtor fees.
» Want to skip the stress of negotiating? Real Estate Witch connects you with top-rated local agents who charge a low 1.5% listing fee. Fill out this form to get started and start saving thousands on your home sale!
7 tips for negotiating realtor fees
Keep these tips in mind as you talk to your real estate agent about commission fees:
- Know your local average commission rate
- Understand the factors affecting commission rates
- Shop around for the best real estate agents
- Negotiate the buyer’s agent fee
- Work with the same agent twice
- Make strategic improvements
- Trim your marketing costs
1. Know your local average commission rate
You need data on local real estate agent commission rates to effectively negotiate with agents.
Nationwide, realtors charge about 5.32% of the home’s sale price on realtor fees, 2.74% going to the seller’s agent and 2.58% going to the buyer’s agent.
However, rates vary significantly by state and market. For example, the average real estate commission in Wisconsin is 5.78% of the home sale, for a typical fee of $17,719, while California's average is lower at 4.99%, but higher home values push the typical fee to $38,585.
“Knowing the average commission rates in your area is key to successful negotiations,” says Brett Johnson, an active Colorado real estate investor and licensed real estate agent.
“Sellers who know the norms can push for reductions or trade specific services—like staging or professional photography—for a lower overall rate," he says "You can actually save money without having to cut corners if you approach it right.”
Local market variations
Rates also vary by neighborhood and property type. In luxury markets, there's often more flexibility because the home is priced higher. At the same time, starter-home areas tend to have more standardized rates, explains Cesar Villaseñor of Click Cash Home Buyers.
“A smart strategy is researching recent local sales and their commission structures," says Villaseñor. "This knowledge becomes powerful leverage in negotiations.”
Key tip: Focus on value
Villaseñor also cautions that while knowing average rates is important, you shouldn’t focus solely on price. “Sometimes, a slightly higher rate from an agent with an outstanding track record can lead to a better sale price, making it worthwhile in the end.”
By understanding local norms and leveraging this knowledge, you can position yourself for more effective negotiations and potential savings.
» Find the average commission rates in your state
2. Understand the factors impacting rates
Let’s dive into the key factors shaping realtor commission rates:
Market temperature
In a hot market, agents may be more open to lowering their commission. Why? Homes sell faster and with less effort, so they can afford to trim their fees while still closing multiple deals.
“The market's really interesting right now," says Alexei Morgado, a Florida-based realtor and founder of Lexawise. “Sellers have leverage in inventory-short markets, especially for mid-priced homes. Agents know they’ll spend less on marketing and secure a faster sale, so they’re often willing to negotiate.”
Season
Real estate activity ebbs and flows with the seasons. Winter is typically a slower time for listings, while summer sees a surge in buyers.
“Picture the market like a festival in summer, bustling with buyers and sellers,” Morgado explains. “In winter, agents may lower their fees to attract business, giving sellers an edge in negotiations.”
Property value
High-value homes often make commission negotiations easier. Why? The dollar amount matters more than the percentage.
For example, 1% of a $1 million home is still a lucrative deal compared to 2-3% on a $200,000 home. “Luxury properties often attract specialized agents who are more confident in their ability to sell quickly, making them more flexible on rates,” says Villaseñor of Click Cash Home Buyers.
Unique situations
Certain types of properties and locations offer more opportunities for negotiation. “Properties in top school districts or trendy neighborhoods give sellers an edge because agents compete for these listings,” says Morgado.
“Similarly, new construction projects often allow for wiggle room, as developers with multiple units prefer to secure deals at lower rates rather than miss out entirely," he says.
By understanding these factors and the motivations behind agent flexibility, you can position yourself to secure the best commission rate for your property.
3. Shop around for the best real estate agent
The real estate market is full of options, from traditional agents and brokerages to low-commission and tech-driven services. You don’t have to settle for the first option or pay more than you’re comfortable with.
“Sellers should keep an eye on how the recent NAR settlement is reshaping the market,” says Levi Rodgers, Real Estate Broker and Founder of VA Loan Network. “Low-commission platforms and tech-driven services are gaining ground, offering more transparent and flexible options.”
Start by researching agents and selling options in your area. Meeting with at least two or three agents lets you compare their expertise, strategies, and commission rates, ensuring you find someone who aligns with your selling goals.
For a more streamlined approach, consider using an agent-finding service like Real Estate Witch. These platforms connect you with top-rated, full-service agents who offer competitive rates, saving you time and potentially thousands of dollars in commissions.
» Fill out this form to find top-rated, full-service agents today
4. Negotiate the buyer's agent fee
Historically, when selling a home, the seller would pay the commission for both their own agent and the buyer’s agent. However, new rules introduced in 2024 have altered this responsibility, creating opportunities—and challenges—for both buyers and sellers.
Buyer's agent fee: What’s changed?
The NAR settlement has shifted how buyer’s agent fees are handled:
- Buyers and agents now negotiate fees directly.
- Sellers are no longer required to offer a buyer’s agent fee upfront.
Instead, sellers can provide concessions, often shown as a percentage on MLS platforms. If the buyer’s agent fee is lower than the concession, the buyer keeps the difference, potentially saving money.
These updates create more flexibility and transparency, but also introduce new complexities to the home-selling process.
Adapting to the new rules
Many sellers still choose to offer compensation to buyer’s agents to ensure competitive offers and robust buyer interest.
As Brandi Brooks, a Memphis-based realtor, explains: “Sellers are asking questions about the impact of not offering a commission. Once they hear my explanation, they're still offering the buyer's agent a commission, especially with homes sitting longer on the market.”
At the same time, some sellers are opting to negotiate strategically, says Teal Clise, a Baltimore-based agent.
"We advise [clients] to prepare to pay compensation but not disclose the amount upfront," she says. "This puts our clients in a much more advantageous position. Buyer’s agents should earn their keep—bringing strong, competitive offers rather than expecting big compensation for subpar ones.”
Key takeaways
To stay competitive in a changing market, experts say that sellers need a strategic approach:
- Be open to concessions or negotiating buyer’s agent fees.
- Understand local market conditions and buyer preferences.
- Know your property’s value and how it affects your leverage.
Flexibility and clear communication are key to success in 2025.
5. Work with the same agent on multiple deals
If you’re selling your current home and buying a new one, consider using the same agent for both transactions. This arrangement can benefit both you and the agent while giving you leverage to negotiate a better commission rate.
For you, it means working with someone who already knows your preferences and needs, streamlining the process. For the agent, it offers the chance to earn commissions from two deals without finding another client.
As Glenn Phillips, CEO of Lake Homes Realty, suggests: “Agents appreciate when homeowners make their job easier or bring added opportunities. Offering to work with one agent for both transactions is a value exchange that could lead to better commission terms.”
Because the agent gains from this dual opportunity, they may be willing to reduce their fees. For example, they might lower their listing fee from 2.5% to 2%, saving you money on your home sale while still benefiting from two commissions. It can be a win-win scenario for both parties.
6. Make strategic home improvements to boost value
A more appealing home can motivate your agent to offer a reduced commission. Improvements don’t have to break the bank, either. Simple fixes like applying a fresh coat of paint, cleaning carpets, or tidying up the garden can significantly improve your home’s marketability.
“Price is what you pay, but value is what you get. Sellers should focus on simple improvements that enhance their home’s appeal without overspending," says Yoann Dorat, a South Florida real estate agent with over 15 years of experience.
Additionally, consider a pre-inspection to identify critical repairs or updates that might deter buyers. Addressing these issues not only makes your home easier to sell but also strengthens your position when negotiating a lower commission rate.
» The most important repairs to make before selling
7. Trim your marketing costs
Agents often spend considerable resources marketing homes—scheduling open houses, hiring professional photographers, and running social media ads. If you want to reduce commission fees, consider trimming some of these marketing expenses.
For instance, skipping high-cost extras like drone photography or 3D tours can save your agent money upfront, and they may be more open to negotiating their commission in return.
This approach is particularly effective in competitive markets where less marketing effort is required. It's all about identifying which marketing strategies are truly necessary to sell your home, and working with your agent to find cost-effective solutions.
By focusing on essential marketing efforts and eliminating unnecessary expenses, you can negotiate lower commission rates while still positioning your home to sell effectively.
🙋 What if I feel uncomfortable negotiating?
You don’t have to negotiate! You can skip the negotiating and choose the best agent for you based on other factors such as experience and local success. Alternatively, you can forgo the agent and sell your home through another method, like using a discount real estate brokerage or selling for sale by owner.
Alternatives to realtor commission negotiation
If negotiating commissions doesn’t get you the terms you want, consider these alternatives to save on your home sale:
- Use a discount real estate broker: Discount brokers offer reduced fees and many services of traditional agents.
- Try agent finding services. These services connect you with top-rated agents at pre-negotiated discounted rates. For example, Real Estate Witch matches you with top-rated local agents from major brands and regional brokerages.
- Sell for sale by owner (FSBO): Skip the listing agent and save on commissions, but be prepared to handle the process yourself. Learn about FSBO pros and cons.
- List with a flat fee MLS company: Get your home on the MLS for a low upfront fee while managing the sale yourself. Explore flat fee MLS services.
- Sell to an iBuyer: Receive a fast, cash offer for your home with flexible closing options. Understand how iBuyers work.
- Sell to a cash home buyer: Perfect for distressed properties or fast sales, but expect offers below market value. Learn about cash home buyers.
Each of these alternatives has trade-offs, so research thoroughly to find the best fit for your situation.
Realtor fees calculator
Use this calculator to see what your selling agent’s commission might look like based on your terms.
Related articles
How Much Do Real Estate Agent Commissions Cost? Learn what the average real estate agent fee is by state or nationwide.
The Best Discount Real Estate Brokers: Discount brokers offer many of the services of a full-service brokerage with fewer fees. Which discount real estate broker is right for you?
What Companies Offer the Lowest Real Estate Commission Fees? These companies offer great rates without any negotiating.
Top 2% Real Estate Commission Companies: Getting a 2% real estate commission can save you thousands of dollars on your home sale! Read about the top 2 percent commission realtors here.