The current average real estate commission in the U.S. is approximately 5.32%, divided between the listing agent (2.74%) and the buyer's agent (2.58%). This statistic comes from a September 2024 survey of 734 partner agents with Clever, who shared the usual rates for buyer and seller agents in their regions. View commission rates in your state.
At this rate, U.S. home sellers pay real estate agent fees of about $7,980 on a $150,000 home and $37,240 on a $700,000 home. For a home valued at the median price of $359,100, this translates to just over $19,100 in total realtor fees.
Remember, real estate agent fees aren't set in stone and can vary depending on where you live, the kind of property you're selling, and how the housing market is performing in your area. For example, selling a $400,000 house with a low commission real estate company offering a 1.5% listing fee, compared to the usual 2.5-3%, could save you $6,000 in realtor fees.
As a former real estate agent and active investor who has completed dozens of transactions and paid various commission rates in multiple markets, I understand how these fees can impact your bottom line. Read on to learn more about average commission rates and where they might be headed next following the groundbreaking NAR lawsuit settlement.
Save on commission with Clever's 1.5% listing fee
The easiest way to significantly reduce your real estate costs is by using Clever Real Estate. Clever connects you with top-rated agents and pre-negotiates a 1.5% listing fee for their services - much lower than the nationwide average of 2.74% - potentially saving you thousands in commissions. Choose Clever to maximize your sale’s profitability with full-service representation at a fraction of the cost.
⚡Get connected with local agents that charge a 1.5% listing fee today.
How much is the average real estate commission?
To deliver home sellers the most accurate information on average realtor commission rates in each state, we conducted a comprehensive survey of active agents across the U.S.
We found that typical realtor commission rates were 5.32%, but ranged from a low of 3.22% to 5.86%.
Remember: these rates only represent averages. Commission rates aren't standardized in any official capacity, and you can always negotiate realtor fees with your agent or sell with a company that offers pre-negotiated low commission rates.
Average realtor commission rates by state
Before you sell, it's wise to understand your area's average total agent fees. This knowledge will help you make decisions that match your financial needs and selling goals.
Across the country, real estate commissions are typically 5–6%, including both the seller's agent and the buyer's agent fee. Realtors charge higher or lower rates based on local norms and market conditions.
Use this table to find the average real estate commission in your state:
| State | Total commission | Buyer commission | Seller commission |
|---|---|---|---|
| Alabama | 5.31% | 2.50% | 2.81% |
| Alaska | 5.04% | 2.47% | 2.57% |
| Arizona | 5.40% | 2.62% | 2.78% |
| Arkansas | 5.30% | 2.55% | 2.75% |
| California | 4.99% | 2.45% | 2.54% |
| Colorado | 5.29% | 2.62% | 2.67% |
| Connecticut | 5.25% | 2.57% | 2.68% |
| Delaware | 5.30% | 2.55% | 2.75% |
| Florida | 5.05% | 2.42% | 2.63% |
| Georgia | 5.62% | 2.71% | 2.91% |
| Hawaii | 5.04% | 2.47% | 2.57% |
| Idaho | 4.68% | 2.30% | 2.38% |
| Illinois | 5.07% | 2.43% | 2.64% |
| Indiana | 5.31% | 2.50% | 2.81% |
| Iowa | 5.51% | 2.60% | 2.91% |
| Kansas | 5.51% | 2.60% | 2.91% |
| Kentucky | 5.30% | 2.55% | 2.75% |
| Louisiana | 5.30% | 2.55% | 2.75% |
| Maine | 5.25% | 2.57% | 2.68% |
| Maryland | 5.30% | 2.55% | 2.75% |
| Massachusetts | 4.47% | 2.03% | 2.44% |
| Michigan | 5.86% | 2.93% | 2.93% |
| Minnesota | 5.77% | 2.62% | 3.15% |
| Mississippi | 5.30% | 2.55% | 2.75% |
| Missouri | 5.73% | 2.76% | 2.97% |
| Montana | 4.68% | 2.30% | 2.38% |
| Nebraska | 5.51% | 2.60% | 2.91% |
| Nevada | 3.51% | 1.66% | 1.85% |
| New Hampshire | 5.25% | 2.57% | 2.68% |
| New Jersey | 5.07% | 2.52% | 2.55% |
| New Mexico | 5.68% | 2.83% | 2.85% |
| New York | 5.36% | 2.64% | 2.72% |
| North Carolina | 5.47% | 2.57% | 2.90% |
| North Dakota | 5.51% | 2.60% | 2.91% |
| Ohio | 5.60% | 2.68% | 2.92% |
| Oklahoma | 5.68% | 2.83% | 2.85% |
| Oregon | 5.00% | 2.42% | 2.58% |
| Pennsylvania | 5.35% | 2.60% | 2.75% |
| Rhode Island | 5.25% | 2.57% | 2.68% |
| South Carolina | 5.36% | 2.61% | 2.75% |
| South Dakota | 5.51% | 2.60% | 2.91% |
| Tennessee | 5.54% | 2.63% | 2.91% |
| Texas | 5.76% | 2.89% | 2.87% |
| Utah | 4.68% | 2.30% | 2.38% |
| Vermont | 5.25% | 2.57% | 2.68% |
| Virginia | 5.19% | 2.57% | 2.62% |
| Washington | 5.18% | 2.56% | 2.62% |
| Washington, D.C. | 4.82% | 2.29% | 2.53% |
| West Virginia | 5.30% | 2.55% | 2.75% |
| Wisconsin | 5.78% | 2.47% | 3.31% |
| Wyoming | 4.68% | 2.30% | 2.38% |
| National average | 5.32% | 2.58% | 2.74% |
Most and least expensive states
To give a clear picture of commission costs across various states, we've organized our findings in two straightforward ways: by total dollar amount and by rate. This approach helps us see the full story of state expenses.
First, we look at states based on the total dollars spent. This view is all about the actual money involved - the average amount a seller in each state spends. It's a more concrete way of seeing which states spend the most and least in real terms.
Next, we focus on the commission rate. It tells us how expensive commission is as a percentage, like a quick snapshot of how much more or less each state charges compared to others. It can help show which states are relatively more costly or affordable.
Most expensive (by total dollars spent)
| State | Commission (dollars) |
| Hawaii | $42,636 |
| California | $38,476 |
| Washington | $30,503 |
| Colorado | $28,623 |
| Massachusetts | $27,854 |
Most expensive (by rate)
Least expensive (by total dollar spent)
| State | Commission (dollars) |
| West Virginia | $8,913 |
| Mississippi | $9,610 |
| Louisiana | $10,681 |
| Kentucky | $11,241 |
| Arkansas | $11,028 |
Least expensive (by rate)
| State | Commission rate |
| Nevada | 3.51% |
| Massachusetts | 4.47% |
| Wyoming | 4.68% |
| Idaho | 4.68% |
| Montana | 4.68% |
Average commission rates by region
Northeast
| State | Average rate |
| Connecticut | 5.25% |
| Maine | 5.25% |
| Massachusetts | 4.47% |
| New Hampshire | 5.25% |
| New Jersey | 5.07% |
| New York | 5.36% |
| Pennsylvania | 5.35% |
| Rhode Island | 5.25% |
| Vermont | 5.25% |
| Total | 5.17% |
The Northeast region, known for its diverse markets ranging from rural landscapes to bustling metropolitan areas, shows an average commission rate of 5.17%.
This could be attributed to the high competition among agents in densely populated areas like New York and New Jersey and the relatively stable real estate markets in states like Maine and Vermont.
Southeast
| State | Average rate |
| Alabama | 5.31% |
| Arkansas | 5.30% |
| Delaware | 5.30% |
| Florida | 5.05% |
| Georgia | 5.62% |
| Kentucky | 5.30% |
| Louisiana | 5.30% |
| Maryland | 5.30% |
| Mississippi | 5.30% |
| North Carolina | 5.47% |
| South Carolina | 5.36% |
| Tennessee | 5.54% |
| Virginia | 5.19% |
| West Virginia | 5.30% |
| Washington D.C. | 4.82% |
| Total | 5.21% |
The Southeast presents a more varied landscape than other regions. With an average commission rate of 5.21%, it's the third most expensive region for selling a home.
This region's diverse economic conditions, from the booming urban centers in Florida to the more rural areas of West Virginia, contribute to this variability.
Delaware offers the second lowest average rate nationally, while West Virginia has the highest, possibly reflecting the region's lower property values.
Southwest
| State | Average rate |
| Arizona | 5.40% |
| New Mexico | 5.68% |
| Oklahoma | 5.68% |
| Texas | 5.76% |
| Total | 5.63% |
Although the most expensive region with an average rate of 5.63%, the Southwest encompasses only four states. This smaller sample size may impact the average rate, reflecting specific market conditions in Texas and Arizona.
These areas have seen significant growth and development, potentially influencing the higher commission rates.
Midwest
| State | Average rate |
| Illinois | 4.82% |
| Indiana | 5.31% |
| Iowa | 5.51% |
| Kansas | 5.51% |
| Michigan | 5.86% |
| Minnesota | 5.77% |
| Missouri | 5.73% |
| Nebraska | 5.51% |
| North Dakota | 5.51% |
| Ohio | 5.60% |
| South Dakota | 5.51% |
| Wisconsin | 5.78% |
| Total | 5.43% |
The Midwest, with an average rate of 5.43%, in the second most expensive region nationally. This region's real estate market is marked by urban and rural settings, with states like North Dakota and Wisconsin offering some of the lowest rates.
However, with their lower average property values, states like Ohio and Michigan tend to have higher rates, impacting the overall regional average.
West
| State | Average rate |
| Alaska | 5.04% |
| California | 4.99% |
| Colorado | 5.29% |
| Hawaii | 5.04% |
| Idaho | 4.68% |
| Montana | 4.68% |
| Nevada | 3.51% |
| Oregon | 5.00% |
| Utah | 4.68% |
| Washington | 5.18% |
| Wyoming | 4.68% |
| Total | 4.80% |
The West shows a unique trend, where states with higher property values, like Hawaii and California, have lower percentage-based commission rates. This is likely due to the larger dollar amounts involved in transactions, allowing for lower percentage rates while maintaining profitability for agents.
States with lower housing prices, such as Wyoming and Idaho, see higher average rates, possibly compensating for the lower overall property values.
Average realtor commission trends
What percentage commission do real estate agents charge?
| Service | Commission rate | Cost |
|---|---|---|
| Listing agent | 2.74% | $9,839 |
| Buyer's agent | 2.58% | $9,265 |
| Total | 5.32% | $19,104 |
Total realtor commission ranges from 2.00% to 9.00%, with a nationwide average of 5.32% of the property's selling price. The total is usually split between the seller's and buyer's agents.
The exact percentage you'll pay a realtor depends on several factors, like the normal rate in your area and which agent you choose to work with. If you find an agent through a low commission real estate company, you can pay a rate well below the industry average.
Average realtor commission for seller's agents
The national average realtor commission for the seller's agent or listing agent ranges from 1.00% to 4.50%, with an average of 2.74%.
On a $359,099 home sale, the listing agent would get $3,591 to $16,159.
Listing commission rates can vary by as much as 40%, depending on where you live. Here's how listing commissions differ in states with the highest and lowest typical costs:
Average realtor commission for buyer's agent
Nationwide, a buyer's real estate agent typically collects 1.00% to 4.50%, or 2.58% on average.
On a $359,099 home sale, the buyer's agent would get $3,591 to $16,159.
Depending on your state, the buyer's agent commission rates can vary by three percentage points. That's a significant cost difference.
Why commission rates vary by state and region
Home value differences
One key factor driving differences in real estate commission rates across states and regions is the variance in home values. Property values fluctuate widely from one area to another, likely directly impacting commission rates.
We often see lower percentage-based commission rates in regions with higher-value properties, such as New York and California. The rationale behind this is straightforward: even with a lower percentage, high-value properties still yield high total commissions due to higher sale prices. So agents are generally more willing to accept a lower rate in those states.
Yet, in areas where property values are lower, like in some parts of Ohio, commission rates tend to be higher in percentage terms. This is because the total commission earned on lower-value homes would be significantly less if the percentage rate were as low as in high-value areas.
State variations in realtor commission disclosure
Real estate commission disclosure practices vary significantly from state to state, and these variations influence how and when commission rates are disclosed to buyers and sellers in the real estate transaction process. These differences can also impact the commission rates themselves.
Some states have stringent requirements for disclosing commission rates. This could include mandating the inclusion of commission rates in the listing agreement or requiring that these rates be communicated at specific stages of the transaction.
For example, in Washington State, a new commission law mandates that real estate agents secure a brokerage services agreement with both buyers and sellers before offering any services.[1] This includes upfront communication about realtor commission and other service costs.
Other states, such as Texas, don't require an exact timing and method for disclosing commissions. These states emphasize clear communication of all costs, including realtor commissions, without being bound to a set schedule or format.
Dual agency
The legality of dual agency, where a single realtor represents both the buyer and seller in a transaction, varies by state and can influence the commission you pay. Some states, such as Colorado and Oklahoma, have outlawed dual agency entirely.[2]
In states where dual agency is permitted, it could potentially reduce overall commission costs, as one agent handles both sides of the deal (and, therefore, may be willing to accept a lower overall commission rate).
However, this practice has complexities and potential conflicts of interest.
How do realtor fees work?
Selling your home typically involves the services of two key real estate professionals: A listing agent and the buyer's agent. The commission from the final sale price of a home is initially paid to the real estate brokers who employ these agents. These brokers then distribute a portion of the commission to the realtors.
The standard commission for each agent is typically between 2.5% and 3%, but the actual amount you pay depends on the rates you negotiate with your listing agent.
You'll discuss commission rates during your first meeting with a realtor, where you'll explore the possibility of working together to sell your home. The agreed-upon rate is then outlined in the listing agreement you sign with your agent.
Note: Realtor commission rates are not fixed. They can vary based on location, the real estate agency, current market trends, and other factors. Plus, these rates are open to negotiation.
Some full-service real estate brokerages, like Clever Real Estate, negotiate lower commission rates on your behalf. This can lead to significant savings on your home sale. Clever pre-negotiates a 1.5% listing fee with experienced agents nationwide, offering you the full services of a professional agent at about half the usual cost.
Clever can help you keep more money in your pocket at closing!
With Clever:
✅ Sellers pay only 1.5% in listing fees
✅ Buyers earn cash back on eligible purchases
✅ You'll work with a local realtor from top brokers, like RE/MAX and Keller Williams
Clever's service is 100% free, with zero obligation. You can interview as many agents as you like, or walk away at any time. Enter your zip code to find a top local agent today!
Who pays realtor fees?
Selling your home involves the seller paying real estate fees for both their listing agent and the buyer's agent. The commission is typically deducted from the sale proceeds rather than paid upfront.
Offering a competitive commission to the buyer's agent is a strategic marketing expense. With around 90% of buyers using agents, a fair commission can significantly increase your home's appeal to these agents and their clients.
🏡 NAR lawsuit: Real estate commission changes are here
The National Association of Realtors (NAR) has settled litigation over broker commission practices, agreeing to pay $418 million. To be paid over four years, this settlement addresses concerns that high commissions have financially burdened sellers.
Key changes under the settlement include:
- New MLS rule. Broker compensation offers can no longer be listed on the MLS, promoting off-MLS negotiation.
- Written agreements. NAR will require MLS participants working with buyers to enter written agreements outlining services and fees, increasing transparency.
- Financial relief for sellers. Eligible sellers may qualify for settlement payments, providing additional financial benefits.
NAR denied any wrongdoing but agreed to the settlement to avoid prolonged litigation. This agreement aims to maintain consumer choice, support the real estate industry, and protect property ownership rights.
These changes further validate the advantages of discount real estate brokers like Clever Real Estate, ensuring sellers can save money while receiving full service.
» Sold a house in the past few years? Visit the Real Estate Commission Litigation website to see if you qualify for the settlement.
How do real estate agents set their commission rates?
Realtors tend to set their commission rate based on what other agents in the area are charging. Instead of a fixed rate, most real estate agents often work within a range, usually between 2.5% and 3%. Several key factors influence their decision.
Property value
The value of a home significantly impacts commission rates, as higher-priced homes can lead to larger commissions. For instance, Ryan Radecki, a real estate professional based in Indianapolis, mentions, "For higher-end homes in our market, say $500,000 and above, I'm more open to discussing the listing fee."
Client relationship and circumstances
Isadora Sarto, an agent operating in Western Massachusetts and Northern Connecticut, tailors her commission rates to each client's unique situation. This includes considerations like selling multiple properties or dealing with challenging circumstances.
Sarto also notes that loyalty and referrals from past clients can influence her decision to adjust rates.
Sale complexity
The ease or difficulty of selling a property is a crucial factor. Susan Aviles, a realtor based in Mt. Pleasant, S.C., considers the home's condition and the local buyer demand.
"I try to find out when I first talk to my client what the overall condition of the home is," she says. Aviles also looks at the level of demand from prospective buyers in the area and what other agents offer.
Services provided
Agents like Michael McGivern in Minneapolis offer varied commission rates based on the seller's chosen service package. "I offer sellers three options with commissions at 5%, 6%, and 7% with different features at each level," says McGivern. "This allows the sellers to tell me what they value and sets them up for a great experience."
Market conditions
Aviles says local market conditions are particularly important when determining the buyer's agent commission (BAC). "We can offer a lower buyer’s agent commission in a seller's market. If there are a lot of active listings, we might offer higher to attract more buyers."
How much do real estate agents make per sale?
The earnings of real estate agents per sale can vary significantly based on the commission rate and the home's sale price. Here's a breakdown of what real estate agents might earn at different commission rates for various home sale prices:
| Home sale price | 5% commission | 5.5% commission | 6% commission |
|---|---|---|---|
| $100,000 | $5,000 | $5,500 | $6,000 |
| $250,000 | $12,500 | $13,750 | $15,000 |
| $400,000 | $20,000 | $22,000 | $24,000 |
| $500,000 | $25,000 | $27,500 | $30,000 |
| $750,000 | $37,500 | $41,250 | $45,000 |
| $1,000,000 | $50,000 | $55,000 | $60,000 |
These figures represent the total commission earned on a sale, typically split between the buyer's and seller's agents. The actual amount an individual agent receives can be less, as it's often shared with their brokerage and may be subject to other deductions.
Why are real estate agent commissions so expensive?
Realtor fees, while seemingly high, might be justified by several factors:
Higher sales prices. Studies by Clever Real Estate show that homes sold through agents typically achieve higher prices. For instance, in 2022 and 2023, sellers using agents netted, on average, nearly $50,000 more than those going the for sale by owner (FSBO) route.
Additionally, the National Association of Realtors reported that FSBO homes sell for approximately $100,000 less than those sold through realtors.[3]
Commission sharing. Listing agents don't retain the entire commission from a home sale. This fee is shared with the buyer's agent and brokerage, reducing the individual agent's earnings.
Marketing costs. Realtors often bear the upfront costs of marketing a property, which includes various promotional activities and materials. This investment is made without any sale guarantee, representing a considerable risk for the agent.
More visibility. Listing with a realtor posts your home on the multiple listing service (MLS), a database of homes for sale in your area, and the "number one source for sellers to list their homes."
While the benefits of using realtors are clear, there's still an ongoing debate about the extent of realtor fees. In the U.S., real estate commissions are among the highest globally, leading to increased scrutiny and discussion about their fairness and necessity.[4]
How to save on realtor commission
Work with a brokerage that offers built-in savings
For many home sellers, a practical way to save on costs is by choosing a low commission real estate brokerage. Leading discount brokerages, such as Clever, offer the same level of service and agent expertise you would expect from a traditional realtor, but at a significantly reduced rate.
Clever connects you with experienced agents from reputable brokerages like Century 21 and Keller Williams. It also pre-negotiates 1.5% listing agent commission rate, which is half the rate most realtors charge.
You have the flexibility to interview multiple realtors to ensure you find the right match for your needs. And if you decide it's not for you, there's no obligation to continue. This service is free, providing a no-risk opportunity for sellers.
The "standard" 6% commission predates the internet, when realtors had to work harder to find clients and potential buyers.
At Clever, we connect top-rated real estate agents with sellers like you at zero upfront cost to the agents — so they’re willing to pass savings along to you.
You get full service for a pre-negotiated low listing fee (1.5% instead of the typical 3% rate), which can save you tens of thousands at the closing table.
Negotiate the commission rate directly with your realtor
While realtor commissions aren't fixed and can be negotiated, the willingness of agents to adjust their rates can vary. Initiating the conversation about commission rates is often up to the seller.
High demand or pre-determined buyer. If your home is in a high-demand area or you already have a buyer, the agent might lower their rate. In such cases, the agent can secure a quicker sale with less effort.
High value property. Agents may accept a lower commission rate for high-value homes. Even at a reduced rate, the overall commission from a high-priced property can be more lucrative than a full-rate commission on a lower-priced home.
Opportunity for repeat business or referrals. If you can offer the agent additional business in the future or refer them to other potential clients, they might be more inclined to negotiate a lower rate. This scenario presents a long-term benefit for the agent, potentially leading to more earnings over time.
» MORE: How to negotiate realtor commission
Sell your home for sale by owner (FSBO)
You can also save by selling your home without a realtor instead of working with a listing agent. However, we don't recommend this route for most sellers for a few key reasons:
Risk of lower sale price. FSBO sellers often struggle to achieve market value for their homes. This shortfall can diminish or even outweigh the savings from not paying realtor fees. A recent survey by Clever revealed that more than half of FSBO sellers had to lower their initial asking price to secure a sale.
Pricing challenges. Setting the right price is crucial in real estate. NAR data indicates that homes sold by agents frequently fetch the full asking price or more, a success rate that FSBO sellers often don't match due to mispricing.[5]
Time and effort. Selling a home on your own is a time-intensive process. It requires a significant commitment to manage showings, negotiations, and marketing.
Legal risks. With the guidance of a professional agent, FSBO sellers can avoid higher risks of legal and financial errors. Over a third of FSBO sellers report making legal mistakes during the sale process.
FAQ
How much is realtor commission in my state?
Real estate commission rates average 5.32%, across the United States but can vary significantly by state. Find average commission rates in your state.
Can I negotiate realtor commissions?
Yes, realtor commission rates are negotiable. While there are typical rates in each area, you can discuss and potentially negotiate these rates with your agent. But it's important to approach this conversation with an understanding of the average rates in your area and the value provided by the agent. Tips for negotiating include being upfront about your expectations and understanding what services the agent will offer for their fee. Learn how to save on realtor commission.
What's included in a commission rate?
A realtor's commission typically covers a range of services essential for selling your home. These services can include listing the property, marketing it through various channels, conducting open houses, negotiating with buyers, and handling the paperwork and legal aspects of the sale. The exact services included can vary depending on the agent and their brokerage.
How do commission rates differ between buyer's and seller's agents?
The commission is typically split between the buyer's and seller's agents. While the total commission rate is negotiated by the seller with their listing agent, a portion of this is offered to the buyer's agent as an incentive to bring potential buyers to the property. The exact split can vary, but it's often close to a 50/50 division between the two agents.
What is a fair commission for a real estate agent?
A fair real estate commission is subjective and depends on several factors, including your home price, how quickly you expect your house to sell, and what services your agent will provide. It should be competitive enough to attract good agents while also being reasonable in terms of the seller's expected return from the sale.
While you can negotiate a lower listing fee, especially if you're willing to take on more responsibilities, many sellers find the best value in working with a low-cost, full-service realtor who offers discounted rates.
Methodology
To provide a comprehensive and accurate overview of average real estate commission rates across the country, we employed a multi-faceted approach:
- Agent survey. We surveyed 734 partner real estate agents across the United States. The survey asked agents to report typical commission rates for buyer and seller agents in their respective markets. This large sample size ensures a broad representation of various real estate markets, from urban to rural areas.
- Data analysis. Our team analyzed the survey data to calculate average commission rates. We considered regional variations and market trends to ensure the data reflected current practices in the real estate industry.
- Market research. In addition to our survey, we utilized external data sources, including Zillow and the St. Louis Federal Reserve, to gather information on current home values as of January 2024. This helped us contextualize commission rates to actual home prices in the market.
- Validation by industry professionals. Our findings were reviewed by industry experts, including current and former real estate agents, for accuracy and relevance. This step ensured that our conclusions aligned with current real estate practices and market conditions.
- Transparency and clarity. We emphasize that the data presented represents average commission rates and should be used as a guideline. Commission rates aren't fixed by law and are always negotiable. We aim to give home sellers a realistic expectation of potential real estate agent fees.
The real estate market is dynamic, and commission rates can fluctuate. We commit to regularly updating our data to reflect the most current market conditions, ensuring our readers can access the latest information.
