How commission works | Commission calculator | Best ways to save | Methodology
📊 The data:
Our December 2023 survey of local agents found that the average real estate commission in New Jersey is 5.21%, which is less than the national average of 5.49%. Calculate your estimated commission in New Jersey.
To sell a house worth $503,432 — the median home value in New Jersey — you'll pay about $26,229 in realtor fees.
Realtor commission is usually the largest cost you'll face when selling your home — but you don't have to pay the full 5.21%. You can use a discount broker to save on realtor fees.
Clever Real Estate could help you save thousands on commission by pre-negotiating 1.5% listing fees with full-service New Jersey realtors from top brokerages.
On that same New Jersey home, you'd pay just $16,200, up to 38% less than paying average rates.
»SAVE: Sell with Clever for 1.5% listing fees and save thousands in commission!
How real estate commission works in New Jersey
| Average listing commission | 2.99% |
| Average buyer's agent commission | 2.22% |
| Total average commission | 5.21% |
There are usually two real estate agents involved in the real estate transactions of 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
Based on our research, the average real estate commission paid in New Jersey for listing agents is 2.99% of the final home price and 2.22% for buyer's agents, for a total of 5.21%.
» LEARN: How do real estate broker commissions work?
Real estate commission calculator for New Jersey
Use this commission calculator to estimate how much you'll pay in realtor fees when you sell your home in New Jersey. Enter an estimate of your home's sale price, and see how much you'll pay at different commission rates.
If you want to decrease your realtor fees, Clever can connect you with a top local listing agent who charges just 1.5%. This will allow you to retain more money from the sale for yourself.
» SAVE: Sell with Clever for 1.5% listing fees and save thousands in commission!
Who pays realtor fees in New Jersey?
When selling a home in New Jersey, the real estate agent fees for both the seller's and buyer's agents are subtracted from the final sales price. You don't need to pay these costs upfront.
The seller's agent makes their fee by supplying services such as market research and managing the closing. The buyer's agent makes their fee by bringing a qualified buyer who satisfies the contract terms and completes the purchase on time.
You don't have to pay these fees out of pocket. Like closing costs, the real estate agent fees are deducted from the sale revenue when the home sale finalizes.
Why do sellers pay the buyer's real estate agent commission?
Offering to cover the buyer's agent fee will likely draw in more potential buyers for your home.
Taking on this cost makes your home more appealing to buyers, who otherwise would need to pay their agent's fee upfront plus the down payment and closing expenditures. Many buyers can't afford these extra initial costs.
When you make a competitive offer for the buyer's agent fee, real estate agents are more motivated to showcase your home to their clients. This boosts your odds of getting multiple bids. Real estate professionals recommend advertising a buyer's agent fee within 0.5% of the local norm, which is 2.22% in New Jersey.
Will the NAR lawsuit change how real estate commission works?
On March 15, 2024, the National Association of Realtors agreed to pay $418 million in damages to settle a real estate commission lawsuit the industry group lost in November 2023.
While the full impact of the settlement is yet to be determined, experts believe that the change will eventually lead to lower buyer's agent commissions and give buyers the ability to negotiate those commissions based on the services they need.
The terms of the settlement are scheduled to take effect in mid-July 2024. But, the settlement hasn't been officially approved yet, and it could be delayed or changed by objections. We'll continue to monitor the status of the settlement and the effects it has on the real estate industry.
» READ MORE:
How to save on realtor fees in New Jersey
Commission rates are not set in stone. In fact, we found that while 2.99% is the average listing commission in New Jersey, rates typically fall between 1.50% and 4.00%. You can save money by negotiating a lower rate with your listing agent or by working with a discount real estate brokerage.
| Listing commission range | 1.50%– 4.00% |
| Buyer's agent commission | 1.00%– 3.00% |
| Total commission range | 2.50%– 7.00% |
» LEARN: What's the commission on a $1 million home?
Can I negotiate realtor commission in New Jersey?
Real estate commission is always negotiable. In New Jersey, the 19 agents we surveyed said these were their most common reasons for agreeing to lower their commission.
| Would you lower your commission for…? | Agents who answered yes |
|---|---|
| Homeowners who are repeat clients | 68% |
| Homeowners with more than one property to sell | 63% |
| Homeowners who also plan to buy with you | 57% |
| Higher property values | 53% |
| Seller’s situation (e.g. divorce or death in the family) | 47% |
| Homes expected to sell quickly | 37% |
| Periods of low housing inventory | 32% |
| High competition for clients | 26% |
| Houses in excellent condition | 26% |
| Highly experienced home sellers | 21% |
| High buyer demand in the area | 16% |
Negotiating realtor fees in New Jersey depends on two main factors: your situation and the housing market.
| Factor | You may have an easier time negotiating low rates if... |
|---|---|
| Your situation |
|
| The New Jersey housing market |
|
While your personal circumstances may differ, real estate conditions in New Jersey will impact all home sellers in the area.
Generally in a seller's market, where home sellers have more leverage than buyers, listing agents' jobs are simpler so they may be more receptive to lowering their fees. The opposite is often true in a buyer's market.
Not comfortable negotiating with a real estate agent? Avoid the awkward talk and let Clever pre-negotiate a lower rate with a top local agent for you.
To evaluate 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 New Jersey is a seller's market, you may be in a good position to negotiate a lower fee with your agent. If market conditions are mixed or favor buyers, it may be tougher to get your realtor to accept a cheaper rate.
The current state of the New Jersey real estate market
| Factor | Trends | Indication |
|---|---|---|
| Months of inventory | There's 1.10 months of housing inventory on the market | Seller's market |
| Sale-to-list ratio | Homes are selling for 101.00% of their listing price | Seller's market |
| Home values | Home values have risen 13.56% year over year | Seller's market |
» LEARN: See state-by-state average commission rates. How does your state compare?
Low commission real estate companies in New Jersey
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.
Listing Fee
Availability
Customer Rating
Overview
Pricing
Reviews
Contact
Overview: If you’re a home seller in New Jersey and you want to maximize your savings on real estate agent fees while still receiving top-notch service, Clever is an excellent choice.
✅ Benefits and features: Clever offers impressive discounts compared to standard agent commissions with its 1.5% listing fee. Its matching service is highly regarded and completely free, with no strings attached.
🏠 How it works: Clever connects you with experienced local agents from reputable brokerages like RE/MAX and Compass. You can review and compare your options to find the perfect fit, all while taking advantage of Clever’s exclusive 1.5% listing fee (same as Redfin), regardless of which agent you choose.
Pros
- Work with an experienced agent from a well-respected brokerage vs. a discount agent
- Enjoy substantial savings of up to 50% through Clever’s extensive network of agents.
- Choose from hundreds of highly rated agents in New Jersey
Cons
- No guarantee that you’ll be able to work with a specific agent or brokerage of your choice
- Additional services like professional staging, drone photos, and 3D tours may come with an extra cost (agents will provide detailed information during their listing presentation)
Listing Fee
Availability
Customer Rating
Overview
Pricing
Reviews
Contact
Overview: If you’re selling and buying a home in New Jersey, Redfin is a strong option to consider. However, Redfin does have a higher minimum commission fee compared to other choices in the state.
✅ Benefits and features: Redfin stands out with its competitive listing fees, charging only 1.5% of the sale price. If you use Redfin for both buying and selling within a year, you can even save an additional 0.5% on the listing fee. Redfin is a reputable brand with a large network of discount realtors, giving sellers in New Jersey more choices than other discount real estate brokers.
🚩 Potential red flags: Redfin heavily relies on technology and operates using a team-oriented model, which may not suit everyone’s preferences. The majority of the process is handled remotely by a Lead Agent and a back-office team. Sellers should also be aware that Redfin has a minimum commission fee of $4,500 in South Jersey and $5,000 in North Jersey. So, if your home’s value is less than $267,000 in South Jersey or less than $334,000 in North Jersey, you may end up paying more than the advertised 1.5% rate.
Pros
- Significant savings on listing fees
- Respected reputation and reliable agents
- Appealing, technology-driven approach for sellers who prefer it
Cons
- May not be the ideal choice for those seeking a more hands-on, personalized agent experience
- The $4,500–5,000 minimum fee range in New Jersey is higher than alternatives
- Redfin has a smaller agent pool compared to Clever
Listing Fee
Availability
Customer Rating
Overview
Pricing
Reviews
Contact
Overview: Prevu Real Estate is a multi-state discount real estate brokerage that offers full service for a competitive 1.5% listing fee (minimums may apply). However, Prevu’s real value is geared toward home buyers, with up to a 2% commission rebate when you purchase a home.
✅ Benefits and features: Prevu stands out with its transparent pricing structure, offering a competitive listing fee in the New Jersey market. The company’s established presence in multiple states demonstrates its ability to consistently provide quality service across various locations. Its online platform ensures easy and seamless communication with its discount agents.
🚩 Potential red flags: Keep in mind that there’s limited available information on reviews and transaction data for New Jersey. Also, it’s unclear what the minimum commission fee is for listings in New Jersey.
Pros
- Good potential listing fee savings
- Established multi-state firm
- Online platform for easy agent communication
Cons
- Limited public reviews or transaction data for New Jersey
- Less agent selection than Redfin and Clever
- Unclear on minimum listing fee amount
» LEARN: How do discount real estate brokers offer lower fees?
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, where 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.
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.
Learn about the home sales 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 New Jersey'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 630 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.
Additionally, we utilized the following data from Zillow and Realtor.com:
- Home values, list prices, and sale prices: Based on Zillow data as of February 2024
- Sale-to-list ratios: Based on Zillow data as of February 2024 (unless specified otherwise)
- Months of inventory: Based on Realtor.com data as of March 2024
