Real estate commission rates for land sales often match or exceed the national average rate of 5.44%.[1] Rates can be 5–10% depending on the land's location, type, and complexity of the sale, according to Shannon Feick, co-owner of ASAP Properties in Cincinnati, Ohio.
The rationale behind the higher commission rate is straightforward: Agents earn less from selling a $100,000 plot of land than from a $400,000 house. The land's value, the anticipated challenges in selling it, and the expected time to close the sale all impact the commission rate.
Many land sellers contemplate selling without a realtor to avoid high commissions. However, without expertise or an immediate buyer, these sales can be challenging and might not lead to savings compared to using an agent.
To maximize profit while reducing stress, consider using a low-commission real estate service like Clever Real Estate. Clever offers access to experienced realtors at a 1.5% listing fee — about half the average rate — providing a cost-effective way to sell your land with professional support. This option allows for free agent comparisons with no obligation to proceed. Fill out this short quiz to get matched with a local agent.
How much is the typical commission for land sales?
The typical commission for land sales is 5–10%, depending on the property's price, desirability, and usage. A seller is usually the one who pays commission on a land sale. This fee covers the commission for both the seller's agent and the buyer's agent.
In many cases, agents charge the same rates on vacant land as on other properties, which means broker fees are often comparable to the average commission rate in your state. The nationwide average commission rate is 5.44%.
However, commissions on land sales, especially for lower-priced properties, can be much higher.
💰 Realtor commission on land sale example
- $1 million lot: A 5% commission totals $50,000 — typically split into $25,000 for each agent.
- $100,000 lot: The same rate yields only $2,500 per agent. It's often considered too low for the required time and effort.
Some brokerages charge a flat fee (e.g., $10,000 on a $100,000 land) instead of a fixed commission rate to ensure agents are fairly compensated.
How to pay less commission on land sales
You have a few options to save money on commission for land sales.
⚠️ Risky: Sell for sale by owner (FSBO). If you sell FSBO, you risk a lower sale price. FSBO sellers sell for $55,000 less on average than sellers with an agent.[2] You'll also have to handle the entire sale process (e.g., pricing the land, finding buyers, negotiating offers) by yourself — which is a lot of work, especially considering the unique aspects of land sales.
🧠 Challenging: Negotiate with a traditional agent. Some agents are open to lowering their commission, especially if your land is high value or in a desirable location. But there’s no guarantee. Only 22% of sellers bring up commission and successfully lower the rate.[3]
🚀 Best and easiest: Work with a low-commission agent. A top low-commission agent provides the full support of a traditional agent for a fraction of the cost. Your agent will have the tools and experience needed to get you a smoother sale and higher profits. You'll get a guaranteed lower rate without having to do the negotiating yourself.
Factors impacting realtor commission on land sales
Rates are influenced by the complexity of the sale, extended listing timelines, and the specialized nature of properties like farmland and vacant lots.
Unlike residential sales, properties such as farmland and vacant lots cater to a niche market with fewer buyers and specific needs, leading to a greater challenge for agents.
Land sales, especially in rural areas, can take a year or more to sell, notes realtor Kristyn Grewell from Edmond, Oklahoma. These longer timelines can result in higher commission rates to account for the agents' prolonged effort.
Finally, the need for percolation tests, access to utilities, and soil quality assessments adds to the sale's complexity. Agents handling these details may request higher commissions for their specialized services.
📊 Fast facts about land sales
- The average farm real estate value in the US, encompassing all land and farm buildings, reached $4,170 per acre in 2024, marking a 5% increase from 2023.[4]
- Cropland values averaged $5,570 per acre, with a 4.7% increase from the previous year, while pasture lands averaged $1,830 per acre, with a 5.2% increase, according to the USDA.
- Though only 4% of all real estate transactions were land sales, they grew by an average of 6% in 2021, outpacing the growth of single-family rentals, industrial properties, and apartment buildings.
- Land value accounts for 40% of household real estate assets based on Federal Reserve Board data on household real estate and the cost of structures.[5]
Realtor fees for land sales: 5 things to know
1. Commission on land sales is negotiable
Realtor commissions for land sales are not fixed and typically vary between 5-10%. Importantly, all realtor fees in any property transaction, including houses, vacant lots, or extensive farmland, are open to negotiation.
While negotiating realtor fees can be daunting, it offers the potential for significant savings.
For example, lowering the commission to 1.5% on a $400,000 land sale could save you $6,000 compared to the typical 3% fee. However, successful negotiation isn't guaranteed, as evidenced by a study showing only 19% of sellers managed to negotiate lower commission.[5]
💡 Criteria for negotiating a lower commission
You generally have a better chance of negotiating lower fees for selling land if you meet the following criteria:
- The land is valued at or above your area's median sales price (or the national median of $416,900.)[6]
- It's a sought-after location expected to sell quickly, giving you more negotiation leverage.
- You can offer to sell or buy multiple properties with the same agent, which could motivate them to agree to lower rates.
- You're open to listing your land at or below market value to attract more offers, which can encourage agents to accept a lower commission.
- You are willing to find another agent if necessary, which can pressure the current agent to lower their rate.
- You make your land more appealing to buyers. Real estate professional Shannon Feick suggests clearing the land of debris and ensuring paths are accessible to significantly increase its attractiveness.
2. Land type may affect your rate
The type of land and required services play a significant role in your expected commission rate.
In regions like the southern U.S. or areas with more affordable vacant land, commissions for smaller plots or farmland can reach 8–10%. Higher commissions might also apply to properties posing higher risks for agents, such as undeveloped land or plots without a septic system.
These factors introduce complexities since buyers typically intend to build on the land, expecting it to be suitable for construction. Agents may need to secure septic information or assist in passing a perc test to confirm buildability.
In a buyer's market, subdividing the property for sale into smaller parcels might increase profitability compared to selling it as one large plot.
Find a local real estate agent for help deciding whether subdividing maximizes profits or selling the entire land parcel is more advantageous.
3. Realtor fees go up on special use
Broker fees for land sales can reach up to 10% for properties requiring extensive preparation and marketing efforts.
For example, land designated for mobile homes demands extra tasks such as obtaining maps, septic and drainage information, and water quality tests from wells.
Selling such properties might also need drone photography to provide aerial views highlighting the land's size and boundaries, aiding potential buyers in making well-informed decisions.
The commission structure looks different for plots meant for manufactured homes, often priced at $100,000 or below for multiple acres. Because these plots have a lower market value than land for residential or commercial development, an agent might consider a $5,000 commission fair. After sharing this fee with the buyer's agent, they might earn $2,500 or even less.
4. Closing costs may be higher on land sales
When selling land, be aware that standard closing costs will apply. But sellers might also face extra expenses unique to land sales, such as surveying, zoning, and environmental assessments, according to Feick, the licensed real estate professional.
Also, expect to pay the following closing costs:
- Escrow services. Provided by title companies, these services involve holding funds and facilitating the closing. Depending on the market conditions, these costs might be paid by the buyer, shared, or covered by the seller.
- Title insurance and search. Buyers are typically responsible for the owner’s title insurance policy and the accompanying title search. These are crucial for verifying the property’s title is clear of issues and are often linked with escrow expenses.
- Transfer taxes. The location of the land sale can dictate additional costs like transfer taxes, calculated as a percentage of the sale price. For example, selling a $1 million piece of land could result in $1,500 in transfer taxes if the rate is $1.50 per $1,000 of property value.
5. You may have to pay the buyer's agent fee
When selling land, it's common to work with two agents: the listing agent, who markets your property, and the buyer's agent, who represents the potential buyer.
Traditionally, the seller was responsible for paying the commission fees for both agents, which typically range between 5% to 10%, depending on the specifics of the land being sold.
However, with recent changes following the NAR settlement, commissions for the buyer’s agent are negotiable between the buyer and their agent, rather than being a requirement for the seller.[7]
Despite this change, many agents we've spoken to have stated that sellers continue to pay the buyer's agent fee in most transactions. Maintaining a competitive commission for the buyer’s agent can be a good idea, as it potentially broadens the appeal of your property to more buyers.
Should I use a realtor when selling land?
It is highly recommended that land be sold through a realtor. Despite the higher commissions associated with land sales, a realtor's expertise proves invaluable for most sellers.
The effectiveness of realtors is reflected in the fact that 90% of all buyers and sellers opt for agent assistance in their transactions, and only 6% of home sales were FSBO sales, an all-time low.[8] Sellers represented by agents also typically achieve sales prices nearly $50,000 higher than those going the FSBO route, which more than offsets the cost of commissions.[9]
An experienced agent has the skills and connections to effectively market your land to a suitable buyer base. Given the smaller market for land compared to residential properties, an agent's network is crucial for reaching potential buyers.
Where to find realtors specializing in land sales
The National Association of Realtors offers an ALC certification for realtors with specialized training and a proven track record in land sales. You can find such accredited professionals through the Realtors Land Institute.
For those mindful of budget, partnering with a low-commission agent can be smart. Offering comparable services to traditional agents at a fraction of the cost, they enhance your chances of a faster sale and maximum returns.
Clever can connect you with multiple top agents in your area. All agents are vetted based on years of experience, past successful transactions, and customer reviews.
You can compare and interview agents for free — with no strings attached.
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