📊 The data: Our September 2024 survey of local agents found that the average real estate commission in California is 4.99%, which is less than the national average of 5.32%.
When selling a house in California, you'll pay an average of 4.99% of the home's sale price in realtor fees.
For context, if you sell a home that costs $440,000, you'd typically pay around $21,956 in realtor fees; $43,413 for a $870,000 home; and $72,854 for a $1,460,000 home.
Realtor commission is usually the largest cost you'll face when selling your home, but there are ways to save on realtor fees. Clever Real Estate can help you save thousands on commission by pre-negotiating 1.5% listing fees with full-service Riverside realtors from top brokerages.
⚡ Sell with Clever for a reduced 1.5% listing fee; save thousands in commission!
Who pays realtor fees in Riverside?
There are usually two real estate agents involved in a home sale:
- The seller's agent (also called the listing agent), who represents the home seller
- The buyer's agent, who represents the person buying the home
When selling a home in Riverside, you won't owe anything to your listing agent upfront. Real estate agents get paid when the home sells. Just like closing costs, realtor fees are taken from the final sale proceeds and paid at closing.
In the past, home sellers usually paid agent fees for both their listing agent and the buyer's agent out of their sale proceeds. However, since the 2024 NAR settlement, sellers and buyers are required to negotiate rates with their own agents separately.
Because of this, experts believe that in the short term, the NAR settlement will affect the buyer's agent commission more than the listing commission.
» LEARN: How do real estate broker commissions work?
Why do sellers pay the buyer's real estate agent commission?
Buying a home is expensive, especially now that buyers are expected to pay their own agents. Any help you can provide to the buyer will help you sell your home.
According to the agents we've spoken with, sellers will likely continue to offer a concession equal to the buyer's agent commission.
Offering this concession makes your home more enticing to buyers, since they won't have to pay their agent's commission upfront in addition to the down payment and closing costs — an expense many buyers struggle to afford. It may also increase your chances of securing multiple offers.
But if you find yourself in a seller's market with plenty of offers on your home, you may be less inclined to offer any kind of concession.
State of the market in Riverside
Commission rates are not set in stone. Realtor fees vary from one location to another and change depending on market conditions.
Fees in one local market may rise as property values increase. At the same time, commission may decline in another area because of slow sales.
While national trends in home values and mortgage rates affect all markets to a certain degree, each market is unique. Changes in local ordinances, school districts, and property taxes directly impact the cost of selling a home.
The NAR settlement may have an impact on home values, as well.
To assess the current state of your local real estate market, examine these three factors:
- Months of inventory
- Sale-to-list price ratio
- Home value movements
If all factors indicate Riverside is a seller's market, you may be in a good position to negotiate a lower rate with your agent. If market conditions are mixed or favor buyers, it may be tougher to get your realtor to accept a cheaper commission.
The current state of the Riverside real estate market
| Factor | Trends | Indication |
|---|---|---|
| Months of inventory | There's 2.37 months of housing inventory on the market | Seller's market |
| Sale-to-list ratio | Homes are selling for 94.81% of their listing price | Buyer's market |
| Home values | Home values have risen 5.12% year over year | Seller's market |
How have home values in Riverside changed over time?
Negotiating realtor fees in Riverside
Real estate commission is always negotiable. Among the realtors we spoke to, most said they're open to negotiating commission for the right reasons.
Most agents told us they'd likely reduce their rate for these types of clients:
- Homeowners who also plan to buy
- Homeowners who are repeat clients
- Homeowners with more than one property to sell
Additionally, some agents may consider reducing their commission in these circumstances:
- Higher property values
- High competition for clients
- Homes expected to sell quickly
- High buyer demand in the area
- House in excellent condition
- Periods of low housing inventory
To successfully negotiate commission with your realtor, take into account the value the agent brings along with how difficult it may be to sell your home.
Learning about your local market conditions is the best way to prepare for negotiations with your agent. Another important factor is your personal situation.
Generally in a seller's market, in which home sellers have more leverage than buyers, listing agents' jobs are more straightforward, so they may be more open to reducing their fees. The opposite is often true in a buyer's market.
⚡Not comfortable negotiating with a real estate agent? Avoid the awkward discussion and let Clever pre-negotiate a lower rate with a top local agent for you.
What to expect from your Riverside real estate agent
Homeowners continue to rely on real estate agents when selling. A recent Clever survey found that 88% of homeowners planning to sell within the next year intend to use a Realtor and see them as an important part of the process.
Full-service realtors provide a wide range of helpful services, including:
- Providing comparative market analysis
- Developing pricing strategies
- Listing and marketing properties to attract buyers
- Negotiating offers and advising the seller on how to proceed
- Guiding sellers through the closing process
A good agent can adjust their services to what you need to sell your home. Agents we spoke to said sellers should generally expect professional photos, lock boxes, and a yard sign as part of the normal service package.
Low-commission real estate companies in Riverside
Negotiating a lower rate with a professional negotiator can be hard! In many cases, home sellers can save just as much (or more!) by selling with a low-commission real estate company.
Discount real estate brokers typically offer full-service support for a reduced commission percentage or flat rate. How they create those discounts will depend on the company's model, with some creating more risks and trade-offs than others.
» Compare the top discount real estate brokers in Riverside.
Next steps
Thinking of selling your home but don't know where to start? Here are some next steps.
Start interviewing local agents
Set up some listing appointments, during which an agent visits your home to discuss its estimated value, lay out their marketing strategy, and provide a quote for their fee.
Here's why it's smart to sit down with a few agents before signing with one:
- It's completely free to meet with agents: There's no obligation or risk on your end. Just keep in mind that the agent is meeting with you to win your business and will try to sell you on their service.
- You can compare pricing and features: Shopping around helps you find the best fit for your specific needs — in terms of fees, experience, and services provided.
- You can learn more about your market from an expert: Realtors can provide local data, like how much nearby homes are selling for, how fast they sell, and other current market trends.
- You will learn about the home sale process: An agent can walk you through the sales process from start to finish, and provide tailored advice for marketing your property to home buyers.
To get started, check out our guide on the best ways to find real estate agents — or you can sign up for Clever’s free agent matching service below to connect with top realtors in your area right now (and save on commission).
Clever has pre-negotiated low commission rates of only 1.5%, with Riverside's top agents. Contact Clever today to find out how much you can save on commission!
Clever can connect you with top local agents sell your house for a pre-negotiated low rate: just a 1.5% listing fee when your home sells (half the typical rate!).
You can interview your Clever agent matches, get free pricing estimates, and compare marketing plans — all with no strings attached.
Ready to learn more? Click below to take our simple quiz and see your agent matches!
Methodology
We gathered our commission rate data from a survey of 734 of our partner agents. The survey asked about standard local rates for both listing and buying agents. We also asked agents about when and why they're willing to negotiate real estate commissions.
We also spoke to local realtors with a service area in Riverside.
- Home values, list prices, and sale prices: Based on Zillow data as of August 2024
- Sale-to-list ratios: Based on Zillow data as of August 2024 (unless specified otherwise)
- Months of inventory: Based on Realtor.com data as of September 2024
