Traditionally, the listing agent and the buyer's agent each get a 3% commission for a home sale. However, these rates are declining. The national average listing fee is now 2.88%, and the buyer's agent fee is 2.82%.
But you don't have to pay the standard rate. Realtor fees aren't fixed. You can try negotiating with agents yourself, or you can find a low-commission brokerage that guarantees a more affordable rate.
For example, Clever Real Estate pre-negotiates listing fees of just 1.5% with top agents from trusted brands like Keller Williams and RE/MAX. This lower rate saves sellers an average of $7,000. You get full-service representation from an experienced local agent for half the traditional 3%. Just answer 5 short questions to find the best low-cost agents near you.
How a 3% real estate commission works
In a typical home sale, the seller pays a commission to each agent involved in the transaction:
- The listing agent earns a 2.5–3% listing fee for their services in marketing and selling the home.
- The buyer's agent receives a 2.5–3% buyer's agent fee for bringing the buyer to purchase the home.
Here's what that looks like on a $400,000 house, assuming you pay 3% to each agent:
| Commission rate | Cost | |
|---|---|---|
| Listing agent | 3% | $12,000 |
| Buyer's agent | 3% | $12,000 |
| Total | 6% | $24,000 |
Can I pay a 3% total commission rate?
Yes, it's possible to achieve a total real estate commission fee of 3% when selling your house, although 4% may be more realistic.
You can pay 4% by working with a 1.5% listing agent and offering the typical 2.5% to the buyer's agent. This approach doesn't come with much risk. Many low-commission agents offer a 1.5% fee for the same level of service as a traditional 3% realtor. And covering the buyer's agent commission can help you get more offers from buyers.
If you want to get the total commission down to 3%, you may have to take on more risk. Here are some potential options:
Option 1: Reduce the listing agent fee and the buyer's agent fee
You can try to negotiate an agent's listing fee yourself. But there's no guarantee they'll agree to a lower rate. Your chances of success are higher if you're in a hot seller's market, you have an attractive property that's likely to sell fast, or you're willing to take on some of the workload.
“When a seller agrees to price aggressively and we expect a quick turnaround, I’m happy to be flexible [on commissions],” says Leticia Sotomayor, an agent in San Bernardino County, California.
An easier way to secure a low listing fee is by finding a top agent through a top discount brokerage. These agents have already agreed to provide full service at a lower rate.
The buyer's agent fee is a bit trickier. You can choose not to cover it, but this may limit your pool of potential buyers. Another route is to pay for part of it via a seller concession. How much you cover is negotiable, so you can try to negotiate with the buyer to lower your costs.
Option 2: Have only one agent involved in the transaction
In dual agency, the real estate agent represents both the buyer and the seller, so only one agent needs to be paid commission. However, dual agency creates a conflict of interest for your agent. They must represent you and the buyer equally, potentially affecting their ability to advocate for your best interests during negotiations.
Another approach is to sell your house without a realtor. This avoids a listing fee but still requires a buyer's agent commission. The major risk with this option is that you may get a lower sale price. In 2024, homes without an agent sold at a median of $380,000, significantly lower than the median of agent-assisted homes at $435,000.[1]
“Exposure is everything. If you go at it alone, you’re likely limiting your reach to qualified buyers,” warns Ryan Radecki, an agent based in Central Indiana.
How to pay half the traditional 3% listing fee
You can get a guaranteed 1.5% listing fee through a low commission real estate brokerage. Leading discount brands offer the same services as traditional agents but at lower rates, allowing you to save thousands while still receiving quality service.
Here are two top companies that charge half the traditional listing fee:
The top-rated Clever Real Estate pre-negotiates 1.5% listing fees with experienced local agents from reputable brokerages like Keller Williams and RE/MAX, saving you the hassle of negotiating fees on your own. You benefit from top-notch agent expertise while avoiding the traditional 3% fee. Sellers save an average of $7,000 with Clever.
Redfin also has a 1.5% listing fee, although it has high minimum fees in some areas, which may mean you pay more than 1.5%. It offers more savings for those who buy and sell with a Redfin agent. Agents at Redfin tend to have a higher workload, so you may not get as much personalized service. Reviews on Redfin's website are positive, but reviews on unbiased third-party sites are mixed.
3% buyer's agent fee: Why sellers have paid it
This fee compensates the buyer's agent for their valuable role in helping you find a suitable buyer. Buyer's agents play a crucial part in the real estate transaction by assisting buyers in their home search.
Traditionally, the typical buyer's agent fee ranges from 2–3% of the home's sale price, and it averages 2.82% nationwide.
However, this rate can vary based on market conditions and your location. Also, with the recent NAR changes, buyers must now negotiate the rate with their agent directly, before viewing homes. This means sellers no longer set the buyer’s agent commission in the listing agreement, and may not be on the hook to cover the fee.
🚨 A lawsuit changed how the buyer's agent fee is determined
The landmark NAR lawsuit settlement has permanently changed how buyers and sellers handle real estate commissions.
Previously, sellers typically paid both the listing agent and buyer’s agent — often totaling 5–6% of the sale price, with a national average of 5.44%.
Now, sellers are no longer required to offer a buyer’s agent commission, and buyer agents must sign a formal agreement with their clients before showing homes. This shifts more responsibility to buyers while potentially lowering sellers' costs.
Here’s what’s new:
- Buyer agent fees are no longer advertised in MLS listings. Listing agents can’t post a set buyer agent commission on the MLS. Instead, buyers negotiate their agent’s compensation directly.
- Buyers must sign agency agreements. Before touring homes, buyers must sign a written contract outlining what their agent will charge and what services they’ll provide. This improves transparency but may require upfront planning for how to pay the fee.
- Sellers can still offer concessions. While sellers can’t advertise buyer agent pay on the MLS, they can (and often do) offer closing cost credits or other incentives that buyers can use to help cover their agent’s fee — if both sides agree.
Realtor commission remains fully negotiable. Just remember that services like Clever Real Estate have already pre-negotiated low listing fees (1.5%) with top agents, helping sellers save thousands — while still getting full service.
“You usually end up getting a better price with full-service support. It really pays off,” says Leticia Sotomayor.
Why do realtors make a 3% commission?
A 3% realtor commission has been a long-standing industry norm, primarily because real estate agents operate on a payment model that only receives compensation upon successful home sale or purchase closing.
"Full-service agents offer hands-on support, professional marketing, and top-notch photography — things that really help a home stand out,” says Leticia Sotomayor.
Agents invest a significant amount of their time, effort, and often their own money in serving their clients, all without the guarantee of payment.
- For example, listing agents often bear the upfront costs of essential services like professional photography, MLS listing fees, and marketing efforts to promote your home.
- Buyer's agents may spend days or weeks assisting buyers in their search for homes, submitting offers, and negotiating. In cases where a home doesn't sell, or a buyer changes their mind, the agent doesn't receive any compensation for their efforts.
Over time, the real estate industry settled on a 3% commission rate as a fair compensation structure that adequately rewards agents for the time, dedication, and risks of real estate transactions.
However, opinions on this matter vary widely. For example, one survey found that about 55% of sellers say they shouldn't have to pay the buyer's agent fee. Commission rates have seen noticeable declines in recent years, although they remain significantly higher than in other countries.[1]
3% commission calculator
To find out how much selling with a 3% commission realtor could cost when you sell your house, fill out the calculator below. Adjust the sale price, listing fee, and buyer's agent fee to see how they affect your net proceeds.
| Traditional realtor | 3% realtor | |
|---|---|---|
| Home sale price | $368,198 | $368,198 |
| Listing realtor fee | $10,604 | $11,046 |
| Buyer's realtor fee | $10,383 | $10,383 |
| Total realtor fees | $20,987 | $21,429 |
A 3% commission would cost you $442 more than the average rate of 2.88%. With Clever, you pay 1.5% — but still get full service from top-rated agents at trusted brokerages. That means expert support, better pricing strategies, and a smoother sale from start to finish.
As you can see, even a small reduction in your agent's commission rate can yield big savings.
For example, on a $400,000 home sale, dropping your listing fee from 3% to 1.5% would put an extra $6,000 in your pocket at closing.
You can easily get a 1.5% rate through low-commission companies like Clever Real Estate. Clever matches you with top-rated, full-service agents in your area who offer a guaranteed 1.5% listing fee. Sellers save an average of $7,000 without sacrificing quality support. Just answer 5 simple questions to find the best 1.5% agents near you.
FAQ
Can I pay less than 3% commission?
Yes, you can pay less than 3% commission to the seller's agent! A number of real estate companies charge low commission rates to list your house, like Clever Real Estate, Ideal Agent, and Redfin.
If your goal is to reduce your total commission payment to less than 3%, it becomes more challenging. This typically involves eliminating one agent from the sale process, which can be achieved by either selling on your own, offering less than a 3% commission to a buyer's agent, or selling directly to a cash home buyer. However, these options may result in a lower sale price that may not be worth the lower commission rate.
Is a 3% real estate commission fair?
Real estate agent commissions are negotiable, and a fair rate is determined by your comfort level and agreement with your agent. On a national scale, average commission rates for listing agents are now below 3%. Due to increased competition in the real estate industry, it's becoming more common to find listing agents providing full service for commissions of 2% or even lower, as opposed to the traditional 3% rates.
Check out our guide to the top low-commission companies.
Do real estate agents always make 3%?
No. A 3% commission is the standard for listing agents, but in some places, realtors may make closer to 2.5%. Commission rates may vary depending on the local real estate market and home values. It's generally advisable for sellers to offer a competitive commission rate to buyer's agents, as this can help attract more potential buyers. To determine the prevailing rate in your area, it's best to consult with a local real estate professional.
What is the lowest commission a realtor will take?
The lowest commission most full-service realtors will accept is a 1% listing fee. This is a significant discount compared to average real estate agent commissions, which are usually around 2.5–3%.
The best way to pay a lower commission while still receiving full service and support from a licensed agent is to work with a low commission real estate brokerage. Top brands, like Clever Real Estate, offer listing fees as low as 1.5%, and allow you to work with the best local agents from brokerages like RE/MAX and Century 21 for a fraction of the price.
What is the most common commission for a realtor?
Most realtors charge a total commission of 5–6% of the final sale price of your home. This amount is split between the listing agent (who represents the seller) and the buyer's agent, so each agent receives around 2.5–3%.
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