Negotiating realtor fees can significantly lower the cost to sell a home.
The traditional seller's agent fee is 3% of the home's sale price. On a $400,000 home sale, even a reduction of 0.5% would save you $2,000.
However, negotiating can be tricky. You have to do more than ask for a lower rate — you need to give your agent a compelling reason to cut their commission.
"I always recommend that [sellers] focus on a value-based conversation rather than just price. If a seller can offer a clean, market-ready property in a hot area — and they’re realistic about pricing — I’m more open to discussing a flexible commission structure, especially if the property will likely move quickly," says Shane Parker of S&P Realty.
In this article, we'll help you prepare for negotiating realtor fees, from understanding industry standards to identifying the key leverage you can use to secure a better rate.
🙋 What if I feel uncomfortable negotiating?
You don’t have to negotiate! Instead, you can find a real estate agent who already offers a lower commission rate.
An easy way to find low-cost agents is through a service like Real Estate Witch. We connect you with top-rated agents from reputable brokerages like RE/MAX and Compass. You'll get traditional, full service. The only difference is you'll pay a 1.5% listing fee instead of the usual 3%, saving $7,000 on average.
Find top local agents, and get a guaranteed lower commission rate.
7 tips for negotiating realtor fees
Keep these tips in mind as you talk to your real estate agent about commission fees:
- Know the local average commission rate
- Understand the factors affecting commission rates
- Talk to multiple 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
“Knowing the average commission rates in your area is key to successful negotiations,” says Brett Johnson, a Colorado real estate investor and licensed agent.
Nationwide, the average real estate commission for the seller's agent is 2.74%.
However, rates vary significantly by state and market. For example, the average listing fee in Wisconsin is 3.31% of the home sale price, while California's average is 2.54%.
📍Find the average realtor commission in your state
Consider 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. 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.”
Realtor fees calculator
Use this calculator to see what your seller's agent’s commission might look like at the usual 2.5–3% vs. a lower rate, like 1.5%. You may also want to cover the buyer's agent fee as a concession, which averages around 2.5%.
💸 If you want a guaranteed lower listing fee, you can fill out a 5-question form, and we'll send recommendations for 1.5% agents to your inbox. Each agent is local, top-performing, and hand-picked based on your specific home sale.
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.
"We tend to see more commission negotiation during the slower seasons — typically late fall and winter," says Parker, a Michigan realtor with S&P Realty.
“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
Many sellers (81%) contact just one agent instead of interviewing multiple professionals.[1]
The real estate market is full of options, from traditional brokerages to low-commission agents. You don’t have to settle for the first option or pay more than you’re comfortable with.
Start by researching agents and selling options in your area. Meeting with at least 2–3 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 short form to compare multiple top-rated agents.
4. Negotiating realtor fees for the buyer's agent
Historically, when selling a home, the seller would pay the commission for both their own listing 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.[2]
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 real estate commission 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 negotiating realtor commission in 2025.
» Find an expert realtor to help you negotiate the sale, including the buyer's agent fee.
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 for negotiating realtor commission down.
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.
Glenn Phillips, CEO of Lake Homes Realty, explains: “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.”
"If a seller is also buying with us, ... we’ll absolutely look at the total business and make adjustments [to the commission rate]," adds Parker.
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.
Can you negotiate realtor fees?
Yes, realtor fees are always negotiable, but successfully negotiating them can be challenging.
- Only 19% of sellers who initiated a discussion about commission found their agent willing to negotiate
- 5% encountered agents unwilling or unable to negotiate
- 15% of sellers didn't know commissions could be negotiated at all[3]
These statistics highlight that while negotiation is possible, it often requires awareness and initiative from the seller.
How to negotiate real estate commission comes down to understanding the factors that are more likely to lead to a lower rate.
Several factors influence an agent's willingness to negotiate fees. Agents may be more flexible in competitive markets where they need to attract clients, or when dealing with high-value properties that promise substantial commissions even at lower rates. Also, if a seller is well-prepared, with a market-ready home and realistic pricing expectations, agents might be more inclined to offer reduced fees.
Alternatives to negotiating realtor fees
If negotiating commissions doesn’t get you the terms you want, consider these alternatives to save on your home sale.
How to pay less in realtor fees
- Use a discount real estate broker: Discount brokers offer reduced fees and many of the same services as 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.
How to avoid realtor fees when selling
- Sell for sale by owner (FSBO): Skip the listing agent and save on commissions, but be prepared to handle the process yourself. Learn about selling without a realtor.
- 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.
Avoiding realtor fees can have major trade-offs, including a lower sale price.
For example, FSBO homes sell for an average of $55,000 less than homes represented by an agent.[1] And cash buyers typically pay up to only 70% of a home's value. Research thoroughly to find the best fit for your situation.
For most people, the best option is to work with a full-service agent who offers a lower rate upfront.
