Does the home seller or buyer pay realtor fees? Sellers pay the entire cost in most transactions. So, if your home sells for $500,000 and each agent earns 3%, the realtor fees would total $30,000, paid by the seller at closing.
Key takeaways
- The listing agent's fee averages 2.88% of the sale price and the buyer's agent fee averages 2.82%, and both are typically deducted from the seller's proceeds at closing.
- Under the NAR settlement that took effect in August 2024, buyers sign a written agreement setting their agent's fee before touring a home, and if the seller doesn't cover that fee, the buyer owes it at closing.[1]
- Sellers can agree to pay the buyer's agent commission (most still do), but the buyer has to ask for it in the offer rather than find it advertised in the listing through the Multiple Listing Service (MLS).
Commissions have long been the highest cost of selling a home. But they're completely negotiable and there are easy ways to reduce realtor fees. Below, you'll learn more about who pays realtor fees, what the fee actually covers, what to do if the seller refuses to pay your agent, and how much room there is to negotiate it.
Just remember that you don't have to negotiate fees on your own. Discount brokerages have already pre-negotiated lower listing fees (1-2%) with top-rated local agents. Fill out this short form to find the best low commission agents and save thousands in fees today.
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. Since August 2024, the buyer's portion has been negotiated in each offer rather than set by the seller in advance.
When the seller pays it
The seller pays both agents in most deals. The title company deducts the full commission from the seller's proceeds at closing and pays each brokerage directly, so the seller never touches the money. On a $500,000 sale at the 5.70% national average, that comes to just under $30,000.
The seller signs a listing agreement before their home gets put up for sale, and this agreement also commits them to pay their listing agent. That has been the default for decades, and the NAR settlement did not ban it.[1] What the settlement changed is that the buyer-side portion isn't automatically listed on the MLS, and needs to be negotiated on every offer.
"Most of my sellers here aren't flat-out refusing to pay it...they're deciding case by case. If the offer is strong, they'll usually still honor the buyer-agent commission. If it's weak, that's the first thing they push back on," says Ashley Oshinksky, broker and owner of Higher Living Real Estate in Metro Detroit.
Slow markets make it more likely for the seller to pay the fee. In Palm Beach County, Florida, agent Sharon Ross says, "houses are sitting much longer for sale now, and buyers expect seller concessions." Her advice to sellers is to be willing to offer them, or watch the house sit.
When the buyer pays
It's rare, but the buyer may have to pay their own agent in some cases.
The buyer pays when the seller's concession falls below the rate set in the buyer-broker agreement. Since August 2024, buyers have signed this agreement before touring a home, and it sets out what they owe their agent. Any gap between that rate and the seller's offer is due in cash at closing.
For example, a buyer-broker agreement at 3% on a $500,000 home is $15,000. If the seller offers to pay only 2%, the buyer can either pay the $5,000 difference, renegotiate with their agent, or walk away from the deal.
Two other situations put the fee on the buyer. An unrepresented seller (such as a for-sale-by-owner) may refuse to pay any buyer-side commission. And a lender's cap on seller credits can limit how much of the fee the seller is allowed to cover, even when they're willing. Ask your lender what that cap is before you write the offer.
When the buyer and seller split it
A split happens when the seller agrees to part of the buyer's agent fee, and the buyer covers the rest. This could happen in a strong buyer's market, where the buyer has the upper hand in negotiations.
Sellers who try to cut the buyer side to zero often lose more than they save. 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."
💼 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 back-and-forth of the offer, not a precondition.
What about closing costs?
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.
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.
Ashley Oshinsky watched it play out with her own buyers. "They signed at 3%, and when we wrote the offer, the seller wouldn’t go above 2% on the buyer side. That gap is real money. But because I’d been upfront with them from the start, they’d already told me they’d cover the difference if it came to that, so there was no panic."
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?
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.
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.
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.
"There are two things that separate the sellers who get a discount from the ones who don’t. First, they ask. I go on about 150 listing appointments each year, and far less than half simply ask. That does the heavy lifting."
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 it isn’t commonly the law. Everything’s a negotiation.”
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 that may be even more effective.
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, charging as little as 1% commission, with no negotiation necessary. In addition, their agents provide the same services as traditional realtors.
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. Note: Make sure you compare the fee and the minimum together, not just the headline rate. A $3,000 minimum means a 1.5% listing fee is only really 1.5% above $200,000. Below that, the floor kicks in and your effective rate climbs above the number advertised.
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
Do buyers ever pay realtor fees directly?
Sometimes. Since August 2024, buyers sign a broker agreement which sets their own agent's fee before they tour a home. If the seller declines to cover it in negotiations (or covers less than the agent's rate), the buyer pays the difference at closing.
What percentage commission do most realtors charge?
Listing agents charge 2.88% of the sale price, while buyers charge 2.82%, according to Clever's 2026 survey of real estate agents.
Is a 3% realtor fee still normal?
For one side of the deal, yes: 3% to the listing agent, or 3% to the buyer's agent, sits at the high end of the normal 2.5% to 3% range and above the national average rates. However, 3% covering both agents would be well below average.
How much commission does a realtor earn on a $300,000 sale?
Using a 6% commission rate, realtors would earn a total commission of $18,000, split between the agents. Each agent then splits some of that with their brokerage, so a 70/30 split (70% to the agent, 30% to the brokerage) leaves the listing agent with around $6,300.
Who pays realtor fees on new construction?
The builder typically pays 2% to 3% from its marketing budget rather than from the buyer's pocket. One condition matters: most builders require your buyer's agent to be present at your first visit. Tour a model home alone, and you may forfeit representation on that purchase.
How are realtor fees paid out?
They come out of the seller's proceeds at closing. The title company deducts the full commission from the seller's net and pays each brokerage directly, the listing brokerage its share and the buyer's brokerage its share. Each brokerage then splits with the individual agent under its own internal agreement.
What happens if I want to switch agents after signing a buyer's agency agreement?
Check the agreement to see if there's a termination clause. Most agreements include a for-cause exit or a notice period, typically 30 days (though some may allow more time). Some add a tail clause requiring you to pay commission if you buy a home that agent showed you within a set window after terminating, often 90 to 180 days.
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).
Related reading
