6% Commission Is Dying: Here’s What’s Replacing It

The once-standard 6% commission in home sales is quickly fading. Today, the average commission rate nationwide is 5.32% — and it's likely to fall even further following the NAR’s recent settlement.

Experts expect the biggest impact on buyer's agent commission. Clever CEO Luke Babich predicts those fees could drop from 2.58% to as low as 1.5–2%, pushing the national average commission closer to 4.5%.

Recent Redfin data already shows the trend in motion: the average buyer’s agent commission fell to 2.34% in October—down from 2.45% a year earlier.[1]

“As commission compression accelerates, it’s clear that agents need more than just hustle — they need leverage," says Dustin Parker, a real estate broker at The Parker Group.

Fortunately, sellers don’t have to wait for the industry to catch up. You can lower your listing fee today by working with a top-rated agent through Clever Real Estate.

Clever pre-negotiates low 1.5% listing fees with full-service agents from major brokerages like Keller Williams and RE/MAX—saving the average home seller thousands in commission. Simply answer a few quick questions to get matched with local agents who offer full service for just 1.5%.

What is 6% real estate commission?

A 6% real estate commission is the typical fee home sellers have historically paid to cover both the listing agent and the buyer’s agent. The total fee is based on the home’s final sale price and usually split evenly between both agents.

How much realtors earn on a $500,000 sale

This means the seller pays around 3% to the listing agent who markets the property and 3% to the buyer's agent who brings in the purchaser, and the fee is calculated based on the home's final sale price.

So if you sell your home for $500,000 with a 6% total commission, you’d pay $30,000 in realtor fees—$15,000 to each agent. 

Do I still need to pay 6% commission in 2025?

The traditional 6% commission is no longer the default. Following the NAR lawsuit settlement, new rules took effect on August 17, 2024, giving buyers and sellers more control over how commissions are handled and who pays them.

Here’s what’s changed:

• Buyers must sign an agent agreement before touring homes, outlining what services their agent will provide and how they’ll be paid.
• Sellers no longer have to offer buyer’s agent commission or advertise it in the MLS.[2]
• Buyer’s agent fees are now negotiable, and can be requested as part of the purchase offer, similar to asking for closing cost help.

These updates could eventually reduce seller costs and encourage more transparent commission conversations. But experts say the real impact depends on the type of market and the buyer's financial situation.

“If sellers don’t offer buyer agent compensation, they may see fewer showings—especially from buyers who can’t afford to cover that cost themselves,” says Shane Parker, a broker in Metro Detroit. “It’s a strategic decision and needs to be part of your pricing and negotiation plan.”

While some believe sellers will continue paying buyer’s agent fees in many situations, especially for first-time buyers, the key takeaway is this: commissions are now a conversation, not a rule.

Discount broker models gain traction

The NAR settlement has also given a major boost to discount real estate brokerages. These services offer full-service representation for a fraction of the traditional 3% listing fee, helping sellers cut their total commission from 6% to 4.5% or less.

Discount brokers like Clever Real Estate and Redfin match sellers with top-rated local agents who charge just 1.5% for listing services. Clever partners with agents from well-known brokerages like Keller Williams or RE/MAX.

 With buyer's agent fees now negotiable and less commonly offered upfront, sellers using these low-commission options can potentially save thousands, without sacrificing service or support.

Is a 6% commission realtor ever worth it?

With record home prices and fewer listings, many agents earn more per sale, making 6% less justifiable and commissions more flexible.

However, commission rates vary widely based on location, home value, the real estate agency, market trends, and other factors. In some cases, hiring an agent who charges a 6% total commission may be practical.

For example, paying 6% might be worthwhile if:

• You find a top local agent who offers full service and hands-on support throughout your home sale, and they have a strong track record.
• The agent provides extra marketing efforts, including open houses, social media promotions, 3D tours, and aerial photography, to help your home sell quicker and for more money.
• The agent's commission covers the cost of home staging or other additional services that would cost you thousands of dollars.
• Agreeing to cover the buyer's agent fee in full creates better negotiations and flexibility between you, the buyer, and their agent.
• The agent helps you secure a sale price that exceeds your expectations, offsetting the added commission cost.

When paying 6% commission could make sense

Let's say you're selling a home valued at around $500,000 and can choose between Agent A, who charges a listing fee of 3%, and Agent B, who charges 1.5%.

• Agent A secures a full-price offer of $500,000;
• Agent B's 1.5% fee gets you a below-list price offer of $490,000.

In this example, it's worth paying the higher commission, as you'd still earn $2,350 more with the higher-cost agent. Despite the higher commission rate, the first agent’s ability to secure a stronger offer results in more money in your pocket.

If you want full service but don’t want to gamble on commission eating into your profits, a low commission model like Clever offers a better middle ground.

Remember that this 6% rate assumes you're responsible for the buyer's agent fee. Under the NAR settlement, you might not have to pay this fee, or you could perhaps negotiate to pay only part of it. For example, this could lower your total commission to 3-4% instead of 6%. 

However, opting not to pay the buyer's agent fee could lead to tougher negotiations on other aspects of the sale, such as the final sale price, repairs, or closing costs. Buyers may seek these other concessions to offset the added cost. It's best to consult with a local realtor for more market-specific advice.

Where does the commission go?

A 6% commission rate may seem like overpaying, but agents don't keep it all.

• Commissions are split between the listing agent, buyer’s agent, and their brokerages.
• On a $500,000 home, a 3% listing commission is $15,000. But an agent with a 50/50 split might only take home $7,500.

“Splits can range from a flat fee to 50% or more,” says realtor Kristyn Grewell. “High-producing agents usually get better splits, while newer agents give more to their brokerage.”

Example: Anywhere Real Estate, which includes brands like CENTURY 21® and Coldwell Banker®, reported an 80% commission split in its most recent public filing.[3]

I can relate to this from my own experience as a former agent. Initially, my commission splits were 30% for me and 70% for my brokerage. As I reached higher sales volumes, these splits improved to 50/50 and eventually to 70/30 in my favor.

How to pay less than 6%

1. Work with a company that offers built-in savings
2. Negotiate with your agent
3. Sell your home for sale by owner (FSBO)

Thankfully, there are ways to pay much less than 6% currently, while still getting full-service support from a top-rated realtor.

1. Work with a low commission realtor

The most reliable way to save money on realtor fees is to work with a real estate brokerage that offers built-in savings. The best low commission realtors offer discounted listing fees in exchange for full service and support from a high-quality realtor.

For example, Clever Real Estate offers a low 1.5% listing fee and matches you with top, full-service realtors in your area.

On a median-priced home sale of $361,263, you'd save $6,286 with Clever compared to what you'd pay with an agent charging the national average rate of 5.32%!

Clever is also backed by strong customer ratings, with over 3,000 5-star reviews on TrustPilot, and since its inception, more than 23,000 customers have sold or bought a home using Clever's agents.

2. Negotiate realtor commission

Real estate commissions are technically always negotiable, and it's worth it to try negotiating a lower rate. Even a 1% difference can save you thousands in commissions.

That said, your realtor may not be willing to budge on commission — especially if your home is less expensive than the area average or comparable homes in your area are selling slowly.

Negotiating with an industry professional can also be challenging. One study found that only 22% of home sellers discussed commissions and successfully negotiated a lower rate with their agents.[8]

In addition, many realtors work for brokerages with set minimum commission requirements, so your agent may be unable to lower their rate.

» MORE: How to negotiate realtor fees

3. Sell your home for sale by owner (FSBO)

You can avoid paying a listing fee by selling your home without an agent, but this means you'll handle the entire sale process yourself. This includes setting a listing price, marketing to potential buyers, and navigating negotiations and closing. Essentially, you’re giving yourself a new job that may or may not pay well when all is said and done.

While the potential savings are real, there are several risks involved with selling FSBO homes. Statistics show that homes sold by owners typically sell for nearly $50,000 less than those sold with the help of an agent.[9] Unsurprisingly, 89% of buyers and sellers used an agent in their transactions, indicating a high reliance on professional assistance.[10]

The bottom line is that FSBO can work for experienced home sellers who are comfortable pricing, marketing, and negotiating on their own. But for most people, it can mean leaving money on the table—or making costly mistakes.

» MORE: How to sell your house without a realtor

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