The only way to eliminate a listing-agent commission is to sell the property yourself, often called a for-sale-by-owner or FSBO sale. You can also lower the cost with a flat-fee MLS service, a limited-service broker, or a full-service agent who agrees to a lower fee.

For example, a 2.5% fee on a $500,000 sale equals $12,500 before other selling costs. NAR's MLS policy changes announced for August 17 also affect how sellers and buyers negotiate buyer-agent compensation. Offers of compensation cannot be displayed on participating MLSs, but sellers can still authorize compensation outside the MLS.

You may still pay closing costs, title fees, transfer taxes, attorney fees, marketing expenses, mortgage payoff charges and, if negotiated, compensation related to the buyer's agent.

Best Ways to Avoid or Reduce Realtor Fees

Selling method Listing-agent fee Your responsibility Main trade-off
FSBO Potentially $0 Pricing, marketing, showings, negotiations and paperwork You take on most of the work and risk
Flat-fee MLS Fixed fee Usually showings, negotiations and coordination Lower cost, but fewer services
Limited-service broker Reduced fee Some selling tasks remain with you Service levels vary
Negotiated full-service agent Custom fee The agent handles most of the transaction Less work, but a higher cost
Direct sale to a buyer or investor Often no listing commission Review the offer and complete due diligence The offer may be below market value

Real estate commissions are negotiable and are not set by law. Agent compensation can be structured as a percentage, flat fee or another arrangement agreed to by the parties.

1. Sell the Property Yourself Through an FSBO Sale

An FSBO sale removes the listing-agent commission because you market and sell the property directly.

You will generally need to handle:

  • Setting a competitive asking price
  • Preparing the home for sale
  • Taking photographs and writing the listing
  • Advertising the property
  • Responding to buyer inquiries
  • Scheduling and conducting showings
  • Reviewing offers and contingencies
  • Negotiating repairs and price
  • Managing inspections and appraisal issues
  • Coordinating the closing

You can reduce legal risk by hiring a real estate attorney, title company or escrow company to prepare or review the purchase contract and closing documents. Requirements vary by state and locality.

How to Make FSBO More Effective

  1. Price the home using recent comparable sales. Look at similar homes that sold in the same area, not only current asking prices.
  2. Order professional photography. Poor photos can reduce interest even when the home is well priced.
  3. Prepare a complete disclosure package. Include known defects, permits, repairs, warranties and other relevant property documents.
  4. Pre-screen buyers. Ask for a lender preapproval letter or proof of funds before scheduling extensive showings.
  5. Use a real estate attorney or closing professional. Do not rely on a generic form without confirming that it meets local requirements.
  6. Set a showing and offer process. Decide how buyers will submit offers, how quickly you will respond and what information each offer must include.

FSBO tends to work best for sellers who understand local pricing, have time to manage buyer communication and feel comfortable negotiating.

2. Use a Flat-Fee MLS Listing

A flat-fee MLS service can place your home on a local Multiple Listing Service for a fixed charge without providing traditional full-service representation.

You may still need to manage:

  • Buyer inquiries
  • Showings
  • Offers
  • Negotiations
  • Repairs
  • Inspection responses
  • Closing coordination

Before choosing a provider, confirm exactly what the advertised fee covers. Ask whether the package includes:

  • MLS entry
  • Syndication to consumer real estate websites
  • Photography
  • Yard signs
  • Showing scheduling
  • Contract review
  • Disclosure forms
  • Offer review
  • Listing changes
  • Cancellation
  • Transaction coordination

A low advertised fee may cover only the initial listing. Optional services can increase the total cost.

Ask how the provider handles buyer-agent compensation or buyer concessions. Under current NAR MLS policy, offers of compensation to a buyer's agent cannot be displayed on participating MLSs. Sellers can still authorize compensation outside the MLS or negotiate other terms through the purchase agreement.

3. Negotiate the Listing Agent's Fee

If you want professional help, do not assume the first commission proposal is fixed. Ask agents to quote several structures, such as:

  • A lower percentage commission
  • A flat listing fee
  • A reduced fee for selected services
  • A shorter listing agreement
  • A lower fee if you provide photography, showings or open houses
  • A fee that changes if the agent also finds the buyer

Ask for a written estimate of your net proceeds, not only the commission percentage. A lower fee may not help if the home is overpriced, poorly marketed or sold for less than its market value.

Terms to Negotiate in the Listing Agreement

Review these items before signing:

  • Listing fee or commission
  • Administrative or transaction fees
  • Marketing and photography charges
  • MLS charges
  • Whether the agreement is exclusive
  • Contract length
  • Cancellation rights
  • The post-expiration protection period
  • What happens if you find the buyer yourself
  • What happens if the buyer is unrepresented
  • Any payment offered to a buyer's broker
  • Whether the agent can represent both sides of the transaction

Have an attorney review the agreement if you do not understand the fee or cancellation provisions.

4. Decide Whether to Pay Buyer-Agent Compensation

Avoiding the listing-agent fee does not automatically remove every agent-related cost.

A buyer may have a written agreement with a buyer's agent that explains how the agent will be paid. The buyer may ask you to cover that amount as part of the purchase offer. You can accept, reject or negotiate the request, subject to the contract and applicable law.

NAR's consumer guidance states that compensation remains negotiable. Sellers may also offer compensation to a buyer's agent outside the MLS if the seller authorizes it in writing.

You may also offer a concession toward certain buyer costs. A concession is not automatically the same as direct buyer-agent compensation. The purchase agreement should state precisely what the concession covers. NAR states that seller concessions may be used for certain buyer transaction costs, but an MLS concession cannot be conditioned on or tied to payment to a buyer's broker.

Your options are:

  • Offer no buyer-agent compensation: You may reduce your costs, but some buyers may need to pay their agent separately or may be less willing to pursue the property.
  • Offer a negotiated amount: You may attract more represented buyers, but your net proceeds decrease.
  • Wait for offers: You can evaluate each buyer's request instead of committing to a payment before marketing the home.

5. Know Which Selling Costs You Cannot Eliminate

Even a commission-free FSBO sale can involve several expenses.

Common seller costs include:

  • Mortgage payoff and lien releases
  • Attorney or title company fees
  • Escrow or settlement fees
  • Transfer taxes and recording charges
  • Required inspections or certificates
  • Repairs negotiated with the buyer
  • Staging, cleaning and photography
  • Advertising or flat-fee MLS charges
  • Property tax and utility prorations
  • Seller-paid closing costs
  • Buyer-agent compensation, if agreed

The IRS treats commissions, advertising fees, legal fees and other direct selling expenses as selling expenses when calculating the amount realized from a home sale. Selling expenses are not necessarily ordinary income-tax deductions, so consult a tax professional about your circumstances.

6. Consider a Direct Sale Carefully

Selling directly to an investor, cash buyer or someone you already know can eliminate the listing-agent commission and may simplify the process.

Compare the offer with the property's likely market value before accepting. A direct buyer may offer less in exchange for speed, convenience or an as-is sale. Obtain an independent valuation or compare recent sales if the offer appears discounted.

A direct sale still requires proper disclosures, a written contract, title work and a secure closing process.

Which Option Is Best for You?

FSBO is usually the lowest-cost option if you have time, understand local pricing and are comfortable handling negotiations.

A flat-fee MLS service may suit you if you want MLS exposure but can manage showings, offers and buyer communication yourself.

A limited-service broker may be a middle ground if you want help with selected tasks without paying for full-service representation.

A negotiated full-service agent may be worth considering if the property is complex, the market is difficult, you live far away or you do not have time to manage the sale. A negotiated fee may produce a better result than a poorly managed FSBO sale.

Bottom Line

The lowest commission is not always the lowest total cost. Before choosing a selling method, compare the fee, expected sale price, time commitment, legal support and other seller expenses.

A low-fee sale still depends on accurate pricing, effective marketing, complete disclosures and a secure closing process.