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.
Realtor fees are one of the highest costs for home sellers, but there are ways you can save.
For example, companies like Clever Real Estate negotiate discounted rates with top agents from brokerages such as Keller Williams, Century 21, and RE/MAX. You get the same full service for just a 1.5% listing fee, saving sellers $7,000 on average. 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.
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.[1]
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.
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 |
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 | 5.51% | 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 | 5.71% | 2.73% | 2.98% |
| Connecticut | 5.57% | 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 | 5.51% | 2.78% | 2.73% |
| Idaho | 5.71% | 2.73% | 2.98% |
| Illinois | 5.53% | 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 | 5.57% | 2.67% | 2.90% |
| Maryland | 5.41% | 2.64% | 2.77% |
| Massachusetts | 5.57% | 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 | 5.94% | 2.98% | 2.96% |
| Montana | 5.71% | 2.73% | 2.98% |
| Nebraska | 5.84% | 2.88% | 2.96% |
| Nevada | 5.71% | 2.73% | 2.98% |
| New Hampshire | 5.57% | 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 | 5.53% | 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 | 5.51% | 2.78% | 2.73% |
| Pennsylvania | 5.77% | 2.80% | 2.97% |
| Rhode Island | 5.57% | 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 | 5.71% | 2.73% | 2.98% |
| Vermont | 5.57% | 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 | 5.71% | 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 upfront to learn what 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 like market conditions, the demand for homes, and the realtor's willingness to adjust their rates. Only 19% of sellers who discuss rates with their agent successfully negotiate a reduced commission.[2]
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).
Realtor fee negotiation ideas
Some negotiation tactics are more successful than others.
What works:
- Higher home value. Above $500,000, the dollar amount of commission 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 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 discount to build their portfolio. 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.[3]
- FSBO homes sell for a median of $360,000, well below the median sale price of $425,000 for all homes.[3]
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, in roughly increasing order of pain.
Your real options
- Ask for a partial concession. Even a 1–1.5% reduction off 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
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.
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