Selling your home is a big deal and, let’s be honest, it can take a serious bite out of your wallet thanks to realtor commission that often hovers around 5-6% of your home’s selling price. That’s $20,000-30,000 for the average-priced U.S. home!
Luckily, these fees aren’t carved in stone. There are ways to bring them down and keep more money in your pocket.
We’ve researched the best tactics for reducing realtor fees. From teaming up with discount agents to rolling up your sleeves and negotiating the fees, we're here to guide you through your options.
Real Estate Witch helps you connect with top agents from renowned firms like RE/MAX and Keller Williams who offer a reduced listing fee of just 1.5%. This could translate into thousands of dollars in savings on commissions. To find out how much you could save, simply answer a few questions to get started today!
How to save big on realtor fees in 2025
1. Find a top low commission realtor
Saving money on your home sale is easier when you choose a low commission real estate company. They offer competitive rates (1.5-2% listing fee), compared to the national average rate of 2.74%.
However, not all low-commission agents provide the same value for the money. Options for low-commission realtors include full-service and limited-service realtors. Here's a quick comparison below:
- Full-service low commission realtors offer the same range of services as traditional agents but at a lower cost. These include in-person consultations, pricing strategies, professional photos, managing showings and open houses, and assisting with offers, negotiations, and paperwork.
- Limited-service agents are cheaper than full-service agents, but typically provide fewer services, often focusing just on essential tasks like listing your property on the MLS, leaving other responsibilities like hosting showings, photography, and negotiation up to you.
Unsure of where to look? The top low commission agents to consider include:
- Redfin offers a 1.5% listing fee but may involve some trade-offs, such as less experienced agents and reduced hands-on support, which might not suit everyone's needs.
- Clever Real Estate also offers a 1.5% listing fee but stands out by ensuring quality is not compromised. It connects you with top-rated, experienced agents in your area, maintaining high service standards without inflating costs.
To get the best value, carefully choose a low commission realtor who matches your specific needs and ensures you don't sacrifice quality for cost.
2. Shop around for agents
Always let potential agents know that you’re interviewing multiple realtors. They may be more willing to cut you a deal if they know your business is at stake or it could go to their competitors.
It’s smart to shop around for practical reasons, too. Some brokerages have strict policies that prevent agents from lowering their commissions. You might need to meet with several agents to find one who has the flexibility — and willingness — to offer you a better rate.
If finding and interviewing multiple agents sounds overwhelming, Real Estate Witch can help. We've already done the hard work of pre-vetting agents in your area. Our partner agents are full-service realtors who work at top brands like RE/MAX and Keller Williams. Fill out this short survey to get matched with an agent today!
3. Negotiate a lower rate
Just as you can haggle over the price of a new home purchase, you can also negotiate realtor fees.
Negotiating fees can be a financially savvy strategy that yields significant savings on real estate transactions. This is especially true after the NAR lawsuit, which has increased transparency in commission structures.[1]
Despite the potential for big savings, industry data reveals that only 22% of home sellers last year discussed and successfully negotiated lower commissions with their agents.[2]
To secure a better deal, sellers have two main options: choose agents who offer lower commissions or enhance the value they bring to the table (for example, maintaining a well-presented home that's likely to sell fast can provide leverage to negotiate lower rates with top agents).
Buyers often decide about a home within seconds, so making a strong first impression is crucial. Consider a fresh coat of paint and improved landscaping to enhance its curb appeal.
If you have an older or hard-to-sell property, consider more significant upgrades that could make it more attractive, such as installing new garage doors or updating the siding.
You can also offer to be more flexible with buyers. Offering after-hours showings and being open to pricing adjustments can be inconvenient but might help your home sell quicker. Additionally, moving out while keeping the home staged with furniture can facilitate easier showings.
Communicate to your agent that you're prepared to do whatever it takes to ensure a swift and smooth sale.
Being informed about the average commission rates in your state and local market conditions can also strengthen your negotiation position. Additionally, offering to pay for certain services yourself, such as home staging or professional photography, may encourage agents to agree to lower their fees.
💬 Saving on realtor fees: What real sellers think
On Reddit, users discuss various ways to sell property without paying the usual 5-6% realtor fee:
- One suggestion is to sell without a realtor, list on Zillow, and offer a commission to buyers' agents. However, this method relies on a hot market to attract offers and emphasizes using standard forms and getting legal checks to ensure accuracy.
- Another user shares their positive experience of selling a home without realtors, with a title company handling all transactions, saving money for both the buyer and seller.
However, some warn that while avoiding realtor fees might seem like a good idea, sellers often overlook the benefits a skilled realtor can bring, such as securing a higher sale price and managing complex transactions.
The discussion also looks at using discount or flat fee brokers and the importance of negotiating commissions effectively. While some prefer DIY selling, especially in favorable markets, others emphasize the extensive advantages professional agents provide, which can justify their fees.
4. Sell without a realtor
Selling your home without an agent, or "for sale by owner" (FSBO), can be a highly effective way to reduce realtor fees. By eliminating the listing agent, you could save the typical 2-3% commission that would normally go to them.
However, managing an FSBO listing requires significant time and effort, with no guaranteed results. In fact, many FSBO sellers actually end up selling their house for far less than if they'd hired an agent in the first place. For example, one study by Clever Real Estate found that sellers using an agent sell for nearly $50,000 more on average than those who do not.
Perhaps that's a major industry study found that only 6% of sellers went the FSBO route in 2024.[2] Still, FSBO may be advantageous in particular situations.
Who FSBO works best for
FSBO may be right for you if you have experience in marketing, negotiation, or law. It's also well-suited for sellers in competitive markets where homes receive quick offers, or for owners of highly desirable properties that are likely to attract buyers easily.
However, it's still highly recommended to list your home on the Multiple Listing Service (MLS) through a flat fee MLS listing service. Additionally, consulting a real estate attorney can ensure that all legal aspects of your sale are correctly managed, reducing your legal risk.
🏠 What are flat fee MLS listing services?
Only licensed agents can list properties on the local MLS, which is essential for visibility as it syndicates listings to major websites like Redfin and Zillow.
If you opt for the FSBO approach but still want broad exposure, consider using a flat fee MLS service. For a few hundred dollars, these services will list your home on the MLS, ensuring it appears on major real estate sites just like those sold by agents.
However, be aware that flat fee MLS services generally provide only the listing service without additional agent support like pricing, showings, negotiation, or closing assistance (they might offer some basic add-ons such as photos or for-sale signs.)
5. Buy and sell with the same agent
What’s better for a real estate agent than earning one commission? Earning two!
If you plan to sell your house and buy another, you may have extra leverage when negotiating with your agent. Let them know you’re interested in using them for both transactions—but only if they offer a lower commission on your sale (or purchase).
This setup allows the agent to earn a commission on both your sale and your next purchase, giving you a stronger position to negotiate reduced fees. The possibility of a double commission can often motivate agents to accept a lower rate – even if it means slashing the rate from 3% to 2% or lower on your home sale.
Alternative option: Sell to a cash home buyer
You can eliminate realtor commissions entirely by selling your home to a real estate investor or a cash home buyer, often referred to as a "We Buy Houses for Cash" company.
This method involves no agents, saving you the 5-6% commission typically associated with traditional sales. Selling to a cash buyer also offers several other advantages, such as the possibility of a fast, all-cash transaction, no need for home inspections or appraisals, and overall convenience.
Just know that you won’t receive the full market value for your home. Cash home buyers usually pay less than what you might get from traditional buyers.
» MORE: The best cash home buyers of 2025
FAQ
Are real estate commissions negotiable?
Yes, real estate commissions are negotiable. The National Association of Realtors (NAR) lawsuit has increased transparency, making it easier to discuss lower rates. To negotiate effectively, understand your local average commission rate, and offer value like a well-prepared home or handling some tasks yourself. Exploring multiple agents and comparing service models can also provide leverage. Alternatively, services like Clever Real Estate connect you with top-rated agents at reduced rates, such as 1.5%, simplifying the process while ensuring savings.
How much are realtor fees?
Average realtor fees are typically 5-6% of the final sale price, though this average is falling across the U.S. This commission is commonly split between the listing and buyer's agents, with each usually receiving around half. To put it into perspective in terms of actual dollars: on a home priced at $250,000, a 5% commission totals approximately $12,500; for a $500,000 home, this rate would result in a commission of $25,000.
Who pays realtor fees?
Traditionally, the seller pays the realtor fees from the sale proceeds because both agents facilitate the sale: the listing agent markets the home, and the buyer's agent brings in the buyer. However, recent industry changes from the NAR lawsuit settlement are shifting this norm. Now, buyers and sellers often negotiate realtor commissions more transparently, which may lead to some buyers sharing some of these costs.
When do you pay realtor fees?
Realtor fees are typically deducted from the sale proceeds at closing. These fees are then distributed to the brokerages representing the listing and buyer's agents. Each brokerage subsequently pays their respective agents based on the agreed-upon commission split.
Related reading
Real estate commission rates for 2025: Learn how much the typical home seller pays in real estate commission nationwide. We also break down how rates vary by state and region, and where rates are trending.
Who pays realtor fees? Does the seller really pay the buyer’s agent? Who pays the agent's brokers? This guide answers all those questions and more.
These companies offer the lowest realtor commission: If you’re looking to save on real estate commission, these companies offer the lowest rates — and the best service.
Overview of Flat Fee MLS Service: A flat fee MLS service sounds like a great deal, but it comes with big tradeoffs you need to know beforehand.