No, realtor fees usually aren't counted in the "closing costs" estimate a lender or title company gives you. But they're paid at closing, and they show up on the same settlement statement, which is why so many people lump them together.[1]
Realtor fees pay the agents. The average total commission is 5.46%, or about $27,300 on a $500,000 sale.[2]
Sellers pay their own listing agent. Since August 2024, the buyer's agent fee is negotiated as part of each deal, though sellers still often cover it.
Closing costs pay everyone else: the title company, the county, the lender, and sometimes an attorney. Sellers typically pay 1% to 3% of the sale price. Buyers pay 2% to 5%.
If you're selling, your total bill for a $500,000 home is likely $32,000 to $42,000 when you add it all together.
Fortunately, there are ways for sellers to reduce these costs. One effective method is to use a low commission realtor like Clever Real Estate, which connects you with top-performing realtors for a flat fee of 1.5% – much lower than the national average listing agent commission of 2.76%, providing substantial savings on your home sale. Take this quick quiz to connect with top agents and achieve big savings on your home sale.
Realtor fees vs. closing costs: What's the difference?
| Realtor fees | Seller closing costs | Buyer closing costs | |
|---|---|---|---|
| Typical cost | 5.46%$27,300 on a $500K sale | 1% to 3%$5,000 to $15,000 | 2% to 5%$10,000 to $25,000 |
| What it pays for | Your agent's work: pricing, marketing, showings, negotiating, and managing the deal to closing | Transferring ownership: title insurance, transfer taxes, escrow or settlement fees, attorney fees | Getting the loan and the deed: lender fees, appraisal, title, recording, prepaid taxes and insurance |
| Who gets the money | The listing and buyer's agents' brokerages | Title or escrow company, attorney, state or county | Lender, appraiser, title company, county recorder |
| Who usually pays | Seller pays the listing agent. The buyer's agent fee is now negotiated, and sellers often still cover it. | Seller | Buyer, unless the seller agrees to a concession |
| Negotiable? | Yes Always. Ask before you sign the listing agreement. |
Partly Shop title and attorney fees. Transfer taxes are set by law. |
Partly Compare lenders, or ask the seller to cover part. |
| How it's paid | Deducted from the seller's proceeds at closing | Deducted from the seller's proceeds at closing | Paid in cash at closing, with the down payment |
| Seller's total on $500K | About $32,000 to $42,0005.46% commission plus 1% to 3% in closing costs, or roughly 6.5% to 8.5% of the price | ||
Commission: Clever’s August 2026 survey of 434 agents. Closing costs: typical ranges as a share of the sale price; your state’s transfer tax can push seller costs higher. Estimate your exact seller closing costs with our calculator.
What is realtor commission?
Realtor commission refers to the fee paid to real estate agents for facilitating the home sale.
Commission is typically calculated as a percentage of the home's sale price, often falling within 5–6%. Our survey found a nationwide average of 5.46%, with 2.70% to the buyer's agent and 2.76% to the listing agent.[3]
However, commission rates can vary depending on location and property type. For example, rates tend to be higher in states like West Virginia than in Hawaii, due to differences in home prices. Commission rates may also be higher for land sales than for single-family homes, as agents seek to offset lower property values with higher commissions.
Unlike salaried professionals, realtors don't receive payment upfront when they take on a new client. Instead, they earn their commission upon the successful closing of a deal.
The seller pays the listing agent. Whether the seller also pays the buyer's agent is now part of the offer negotiation, and many sellers still agree to it. Either way, commission comes out of the sale proceeds at closing.
🔍 Realtor commission changes: What you need to know
Since August 17, 2024, under the NAR lawsuit settlement, buyer's agent pay can't be advertised on the MLS, and buyers must sign a written agreement with their agent before touring homes. Sellers no longer have to offer anything to the buyer's agent up front. In practice, the buyer's agent fee usually gets settled in the offer, often as a seller concession that's paid at closing.[4]
When a seller offers less than the buyer's agent asked for, the agent often covers the difference. "I'm seeing a lot of agents discount it so that... if their buyer's rep says three and... the seller says I'll pay two, they're not making the buyers bridge the gap," says Katina Thornton, a REALTOR® with Keller Williams Realty in Middle Tennessee who's worked with Clever since 2021.
What are closing costs?
Closing costs cover the expenses incurred to complete the sale and transfer property ownership to the buyer.
For sellers, these costs range from 1% to 3% of the home's final sale price. For example, on a $500,000 home, closing costs may amount to $5,000 to $15,000. Clever's data puts the average seller's closing costs at 2.70% of the sale price, or about $9,963 on a median-priced home.[5]
Common fees encountered at closing include title and settlement fees, transfer taxes, recording fees, and attorney fees.
While most closing costs are fixed and non-negotiable, they vary based on location. Buyers may also face additional expenses due to lender and underwriting fees.
Some of these costs are set by your state or county, like transfer taxes and recording fees. Others, like title, escrow, and attorney fees, vary by provider, so you can shop them. Buyers may also face additional expenses due to lender and underwriting fees.
Elliott Grozan, a REALTOR® with Denovo Realty on Florida's Space Coast and a Clever Partner Agent for more than five years, tells sellers to ask for quotes. "If your state makes you use an attorney, just see what the closing fees are," he says. "Some costs are fixed by the state that you're in, so you can't really do anything about that. But there might be a few hundred to a few thousand dollars you can shop with there."
💡Saving on closing costs: Tips for buyers and sellers
Buyers may reduce closing costs by negotiating with sellers to cover part or all of these expenses in the contract. This tactic is particularly effective in a buyer's market, where buyers hold more negotiating power.
Buyers can also secure a home buyer rebate or commission rebate to save on their home purchase without any negotiation. Some companies pay buyers cash back at closing. Clever, for example, gives buyers up to $500 after closing on homes over $150,000 when they buy with a Clever partner agent.
Sellers may save by comparing quotes for closing services and securing the best rates for items like title insurance and attorney fees. They can also reduce commission rates by using a discount broker.
Why the distinction matters
Understanding the difference between realtor fees and closing costs helps you:
- Budget realistically: Buyers need to plan for thousands of dollars in upfront closing costs, while sellers should account for both commission and closing costs when estimating their net proceeds.
- Negotiate smarter: Some fees are flexible. Buyers can ask sellers to cover part of their closing costs, and sellers can shop around for lower title and attorney fees or negotiate agent commissions.
- Stay compliant: Read your settlement statement: Commission appears as its own line on the Closing Disclosure and settlement statement. Check that the rate matches your listing agreement before you sign.
Buyer vs. seller closing costs
Who pays what at closing?
- Sellers usually pay the listing agent's commission, often the buyer's agent's too (about 5.46% combined), plus 1–3% in seller closing costs, such as transfer taxes, title fees, and attorney fees.
- Buyers usually pay the bulk of closing costs, often 2–5% of the loan amount. These include lender fees, appraisal, escrow, and prepaid taxes/insurance.
In a $500,000 sale, the seller would typically pay about $32,000 to $42,000 in combined commissions and closing costs, and the buyer would owe $10,000 to $25,000 in their own closing costs.
Do buyers pay realtor fees at closing?
Sometimes. If the seller agrees to cover your agent's fee, it comes out of the seller's proceeds and you never see a bill. If they don't, you owe whatever your buyer agreement says, and it's due at closing on top of your down payment and closing costs. Your buyer agreement sets the maximum your agent can be paid, so read it before you make an offer.
How to determine home sale costs
Check your listing agreement
If you're preparing to sell but uncertain about your expenses, it's time to review your listing agreement.
For sellers, commission details should be stated clearly in your agent's listing agreement. This agreement may also outline the buyer's agent fee, compensating the agent who brings in the buyer.
Be mindful of the percentage amounts you've agreed to pay your agent and the buyer's agent, as these are likely your responsibility.
Susan Aviles, owner of Reside Real Estate in Charleston, SC, and a Clever Partner Agent, says the listing appointment is when to settle both numbers. "Sellers can negotiate their listing agent's compensation before signing a listing agreement," she says. "They can also discuss whether they are willing to contribute toward the buyer's agent compensation as part of the transaction."
Request a seller's net sheet
Sellers can also request a seller's net sheet from their agent, broker, or title company to gain insight into potential commissions and closing costs in specific dollar amounts.
A net sheet is a spreadsheet or document that contains line items for each expense, with realtor commission and closing costs separated. It takes the projected home sale price and deducts anticipated commission and closing costs to provide a solid estimate.
A net sheet calculation is typically based on a comprehensive home value estimate using a comparative market analysis (CMA), plus a reliable estimate of typical closing costs in your area.
How to save on your home sale costs
Negotiate a lower rate
Negotiating a lower commission rate with your listing agent is a smart way to reduce home sale costs. You could aim for a listing rate below the market average, such as 2% instead of the typical 2.76%.
Most sellers never ask. In our July 2026 survey of 500 recent sellers, only 33% of those who used an agent tried to negotiate commission. But 93% of the sellers who asked got a lower rate.[6]
If you're still determined to negotiate, review the key steps to negotiate realtor commissions.
Use a discount broker
Discount real estate brokers offer to sell your home for a lower commission rate than the typical 2.5–3% charged by traditional realtors, and some charge as little as 1.5%.
For example, agents within Clever Real Estate's network list for as low as 1.5% ($3,000 minimum). On a $500,000 home, that's about $6,300 less than the average listing fee. Fill out this short quiz to find top agents near you today.
Wayne Newcomb, a Clever Partner Agent in Albany, NY, who has sold about 2,600 homes over 27 years, sees the gap locally. "I think the average realtor in here is charging probably two and a half to 3% on the listing end of things, where we're usually doing it at 1.5 through Clever," he says. "If you can go into someone's house and offer them a one and a half percent commission compared to a 3% commission, that makes a difference for people."
Hire a flat fee MLS company
Set on selling your house without a realtor? You can improve your chances of success by hiring a flat fee MLS company. These companies allow you to list your home on the multiple listing service (MLS), increasing its exposure to potential buyers.
Selling without an agent is rare. Only 5% of 2025 sales were FSBO, a record low, and FSBO homes sold for a median of $360,000, compared with $425,000 for agent-assisted homes.[7] Part of that gap is the type of home, since FSBOs skew toward manufactured homes and sales to friends and family.
But selling without a realtor can still be challenging, even with the added marketing exposure provided by a flat fee MLS service.
If you're unfamiliar with your local real estate market or lack the marketing expertise required to sell at the highest price, you could potentially lose thousands of dollars. And remember, you may still need to pay the buyer's agent commission fee, unless your buyer is unrepresented.
» LEARN: Pros and cons to selling FSBO
FAQ
Are closing costs and realtor fees the same thing?
No. Realtor fees pay the agents. Closing costs pay for the title work, taxes, recording, and loan. Both are settled at closing and show up on the same settlement statement, but closing cost estimates usually leave commission out.
Is a realtor fee part of closing costs?
On paper, it's listed with them. Seller-paid commission appears in the "Other" section of the Closing Disclosure. But when someone quotes closing costs of 2% to 5%, commission isn't in that number. Budget for it separately.
Do realtors still charge 6%?
Some do, but the average is lower. Total commission averages 5.46% nationwide, and the listing side averages 2.76%.
How much are closing costs on a $300,000 house?
For a seller, about $3,000 to $9,000 in closing costs, plus roughly $16,400 in commission at the average rate. For a buyer, about $6,000 to $15,000.
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