Realtor fees in the United States are typically 5% to 6% of a home's sale price. The exact amount is negotiable and depends on the location, property value, agent, and services included.
An August 2026 survey found an average total commission of 5.46%, divided into about 2.76% for the listing side and 2.70% for the buyer's agent side. A separate 2026 survey reported a 5.70% average. Those figures show why there is no single nationwide commission rate.
Realtor Fees on a $500,000 Home
| Fee estimate | Total cost |
|---|---|
| 5% commission | $25,000 |
| 5.46% average commission | $27,300 |
| 5.70% average commission | $28,500 |
| 6% commission | $30,000 |
At the 5.46% average, about $13,800 would go to the listing side and $13,500 to the buyer's agent side on a $500,000 sale.
Who Pays Realtor Fees?
Sellers
Sellers usually negotiate and pay the listing agent's fee under the listing agreement. They may also agree to pay or contribute toward the buyer agent's compensation.
Since August 17, 2024, participating MLSs have not been allowed to display offers of buyer-agent compensation. Sellers can still offer compensation through other methods if they approve it in writing.
Buyers
Buyers must agree in writing with their agent on the agent's compensation before touring a home with that agent. The agreement should identify the fee as a percentage, flat fee, hourly rate, or another clearly defined amount.
Buyers do not always pay the fee directly out of pocket. A seller may offer compensation to the buyer's agent. If that payment is less than the amount stated in the buyer agreement, however, the buyer may owe the difference.
Are Realtor Fees Negotiable?
Yes. There is no legally required 6% commission rate. You can negotiate the fee before signing a listing agreement or buyer-agency agreement.
Possible options include:
- A lower percentage commission
- A flat fee
- A reduced fee for a high-value property
- A limited-service listing
- A lower fee when the same brokerage represents both sides, where permitted
- Separate marketing, transaction, photography, or administrative fees
A lower commission is not always the lowest-cost option. It could come with less marketing, less support during negotiations, or a lower sale price.
How to Reduce Realtor Fees
Before hiring an agent, ask for these details in writing:
- The exact percentage or flat fee
- The estimated total dollar cost
- Whether the fee includes compensation for another agent
- What happens if the seller does not pay the buyer-agent fee
- The contract length and cancellation terms
- Any transaction, administrative, marketing, or cancellation charges
- The services included in the agreement
Sellers should compare at least two or three listing proposals. Buyers should understand their agent's fee before signing a buyer agreement and confirm whether seller-paid compensation reduces their obligation dollar for dollar.
Realtor Fees Are Separate From Closing Costs
Agent commissions are only one part of a real estate transaction. Buyers and sellers may also pay title charges, recording fees, transfer taxes, attorney fees, loan costs, inspection charges, repairs, and other closing expenses.
Before signing, compare the total fee, the services included, and the amount each party may owe.