Negotiating a lower commission rate is a smart way to save big — and yes, realtor fees are negotiable.
Our recent survey found the average total real estate commission in the US is 5.70%.[2] Shave even one percentage point off that on a $500,000 sale and you keep an extra $5,000 in your pocket.
Your chances of success go up when you come prepared — knowing the average rates in your area, your leverage, and the strategies that make agents more open to lowering their fees. Our guide provides the short version first, then the full playbook.
Negotiating can still be stressful, and it may be tough if you don't have much bargaining power. If you'd rather skip the back-and-forth, a service like Clever Real Estate matches you with top local agents at a pre-negotiated 1.5% listing fee instead of the standard 3% — saving about $7,000 on average. Answer 5 short questions, connect with top agents, and pay half the typical commission.
🤝 Are realtor fees negotiable?
Yes, realtor fees are negotiable. Here are the essential steps:
- Know your local rate. Look up the average listing commission where you're selling so you have a number to anchor to.
- Evaluate your leverage. A high-value, move-in-ready home in a hot market gives you the most room to negotiate.
- Compare two to three agents. Competition is your strongest tool — agents flex when they know you're shopping.
- Trade workload for a lower rate. Offer to handle showings, photos, or a first-draft listing to justify a smaller fee.
For a more complete overview, see the 7 steps for negotiating below.
How to negotiate realtor fees in 7 steps
1. Know the average commission rate in your area
Real estate commission can differ significantly depending on your state, city, or even neighborhood. What’s normal in one place might seem expensive somewhere else.
For example, our research shows that total commission rates average as low as 4.50% in Washington DC, but as high as 6.20% in Michigan. Typically, areas with lower home values have slightly higher commission rates.
Knowing the typical rates in your area and what sellers pay for similar homes can give you an edge. This knowledge helps you have more confident, informed conversations with agents, making it easier to negotiate fair terms that work for both sides — which can be especially reassuring, considering that nearly 4 in 10 homeowners (38%) worry about paying too much in commission.[3]
Average realtor commission in your state
2. Evaluate your negotiating power
Realtors may be more open to negotiating commissions in today’s housing market, where higher interest rates and fewer active buyers and sellers create new challenges.
If you’re selling a higher-priced home or one in a highly desirable location, you might have even more room to negotiate.
Joanne Cleaver, a former real estate editor for the Milwaukee Journal Sentinel and author of a book on negotiating realtor commissions, suggests using market trends to evaluate what’s fair to pay an agent.
“Start by estimating how long selling your home might take — shorter for starter homes, longer for luxury properties — then calculate the typical commission an agent would earn and break it down into an hourly rate,” Cleaver advises.
For instance, if a house is likely to sell in two weeks, a realtor might only need 30–40 hours of work. On a $20,000 commission, that works out to an hourly rate of $500–667.
This simple calculation gives you a clear picture of what you’re paying for and helps you propose a commission that feels fair — both to you and your agent.
💪 Factors impacting your negotiating power
Your home’s value
Higher-priced homes, especially in the luxury market, tend to attract lower commission rates without much negotiation. Why? A smaller percentage of a high-value home still delivers a significant payday for the agent.
“Agents might be more flexible on commission if you’re selling a higher-priced home or if you’re in a market where inventory is tight and listings are selling fast,” explains Randall Yates, a real estate broker based in San Antonio, TX. “But if your home requires extensive effort to market or sell, that flexibility may disappear.”
For instance, I once managed a listing valued at just over $1 million. Initially, I proposed a 3% commission rate, but I was content when the seller negotiated it down to 2.5% due to the substantial payout potential.
Ultimately, an agent might consider that a smaller percentage of a $1 million property can be more lucrative than a larger percentage of a $350,000 property—even though both might require the same level of effort to sell. Therefore, homes with a lower market value may not have as much leeway in negotiating commission rates.
Your home’s desirability
The condition and appeal of your home play a big role in an agent’s willingness to negotiate their commission. Properties that are well-maintained, located in prime areas, or packed with sought-after amenities are much easier to sell, making agents more open to lowering their rates.
“In a reasonably balanced market, homes that are 'picture-perfect' and move-in ready, with a reasonable price, give sellers leverage with agents,” explains Glenn Phillips, CEO of Lake Homes Realty. “These homes are the easiest to sell and don’t need extra agent effort.”
For instance, I once agreed to a 2% commission—below the market average—for a property in a highly desirable neighborhood with top-rated schools. I knew it would sell quickly and require minimal work on my part, making the lower fee worthwhile.
Conversely, less desirable homes—like fixer-uppers or properties needing major repairs—are much harder to market and sell. For these, agents are less likely to budge on commission. In my experience, taking on a challenging property at a reduced rate just doesn’t make sense, given the time and effort required to attract buyers and close the deal.
» Best home improvements to make before selling
Your local real estate market
Another crucial factor is the state of your local real estate market. In a seller's market, agents might be more flexible with their commission rates. The quick turnover of properties means they can afford to accept a lower rate for a faster sale.
"For example, if properties in your area are selling rapidly, often within 30 days, the broker's marketing expenses are likely lower, which could be a point for negotiation," says Michael J. Vestuto, a seasoned real estate professional based in Las Vegas, NV.
In slower markets, agents may reduce their rates to attract scarce business.
Some real estate agents (40%) think 2025 will be a seller’s market, and 37% predict it will be a buyer’s market.[1]
The sale season
The timing of your home sale can also influence your ability to negotiate commission rates.
During peak selling seasons, when the real estate market is bustling with activity, agents may have less incentive to lower their rates. This is typically the case in the spring and early summer when buyer interest is at its highest.
During slower periods, such as the winter or holiday season, or in markets experiencing low inventory, agents may be more open to negotiating their fees to secure any available listings.
This flexibility can be a strategic advantage for sellers who list their homes during these less busy times.
3. Shop around
Agents and brokerages offer different pricing and service models. Some are firm on commission; others adjust their fees and services to better fit your needs.
From my experience, I'm more inclined to negotiate my rates if I know a seller is considering multiple agents. The competition creates a stronger incentive to adjust fees to secure business.
Consider exploring discount brokerages or agent matching services, which can provide built-in commission savings without negotiating. However, be mindful of potential differences in service quality.
Do your homework to find the right agent or service for you. Interviewing at least 2–3 agents or brokerages can help you gauge who offers the best combination of cost-effectiveness and quality service, ensuring you find the right fit.
Interviewing at least two to three agents helps you gauge who offers the best mix of cost and quality. It's also worth exploring built-in savings from discount brokerages or agent-matching services — just be mindful of potential differences in service quality.
🚫 Avoid junk fees
Vestuto, the real estate professional based in Las Vegas, advises being vigilant about paying "junk fees" such as broker, administrative, or transaction fees. These fees are added to the commission and can increase the total cost of selling your home.
These types of fees are not mandatory and can often be negotiated. Here are some tips to avoid paying these fees.
- Ask questions in the interview. Don’t hesitate to ask why each fee is being charged and how it contributes to the sale of your home.
- Negotiate. Remember, every aspect of the realtor's fee structure is open to discussion. If a fee seems unreasonable or unclear, discuss it with your agent or broker.
- Compare agents. When interviewing agents, ask about all potential fees. Choose an agent who is transparent about their commission rate and all fees charged.
- Seek legal advice. If you're unsure about any fees, consider consulting a real estate attorney for clarification.
By staying informed and assertive, you can avoid unnecessary costs and keep more money in your pocket when selling your home.
4. Improve your home's appeal
Pre-listing improvements can significantly boost your home's appeal to potential buyers. Simple updates like repainting, landscaping, or deep-cleaning carpets can make a big impact on your home's presentation, both in photos and during showings. And for many sellers, these updates feel essential — 46% worry that skipping repairs might prevent their home from selling.[3]
Research backs up the value of pre-listing repairs. Painting and landscaping consistently rank among the top home improvement projects for return on investment. In fact, 76% of sellers report making repairs or updates before or after listing their homes.[4]
Sellers most commonly tackle plumbing, kitchen updates, electrical work, painting, and minor roof repairs before listing. For more on which improvements pay off, see our guide to the best home improvements for resale.
Move-in-ready homes not only attract buyers but also make the selling process smoother for your real estate agent. Many agents, including myself, are more likely to offer lower commission rates for well-prepared and fairly priced homes since they sell faster.
If your home needs more than just cosmetic updates and you're uncertain where to begin, a pre-listing inspection is a smart move. It helps identify potential issues early, allowing you to address them proactively and avoid delays or complications during negotiations.
5. Trade workload for a lower commission
Partnering with a skilled agent is key, but you can also help make the transaction seamless and appealing. Present your home as "picture perfect," set a reasonable list price (not an aspirational one), and handle tasks the agent won’t have to manage.
"It gives the agent something of value in exchange for commission changes," advises Glenn Phillips, CEO of Lake Homes Realty.
When negotiating commission rates, think about ways to reduce your agent’s workload or costs:
- Offer to skip open houses or 3D tours if you don’t feel it necessary.
- Suggest alternatives, such as a friend who’s a professional photographer who could take listing photos for free.
- Handle minor showings yourself if your schedule allows, especially weeknight or weekend windows the agent would otherwise drive across town for.
- Offer to write a first-draft listing description for the agent to review and polish.
Keep in mind that cutting key services to lower costs might backfire. Your agent's priority is to sell your home quickly and for top dollar, so eliminating important tools could impact your home's marketability — or even your agent's willingness to work with you. Strive to find a balance that benefits both you and your agent.
📃 Negotiation script: what to actually say
Use these lines when you sit down with an agent:
Compare rates: “I've talked to two other agents who quoted 2.5%. Are you able to match that?”
Trade workload: “My home is move-in ready and I can handle weekend showings and the first-draft listing. Given how little marketing this will need, can you come down to 2.5%?”
Bundle buy + sell: “I'm buying my next home too. If you represent me on both sides, can you lower the listing rate?”
Can sellers ask realtors to reduce their commission?
Home sellers can request that their listing agent accept a lower commission rate. The best time to negotiate this is before signing a listing agreement. It can be more difficult to secure a reduction once the agreement is in place and the home is listed, though exceptions exist.
For example, if buyers submit an offer that's lower than expected, a seller may agree to it because the agent reduces their commission, making the deal more financially favorable. However, the likelihood of this depends on local market practices. For tailored advice, consult a local realtor.
Alternatively, you can bypass uncomfortable negotiations by finding an agent who offers a lower rate upfront. Clever can help by connecting you with skilled agents who charge 1.5% instead of the traditional 3%. Just take a quick quiz to get matched with trusted, low-commission agents in your area.
6. Work with an experienced agent
Choosing an agent solely based on their willingness to accept a lower commission is often a mistake. Weak or inexperienced agents (less than two years of experience) may offer reduced rates, but they often lack the skills that seasoned professionals provide.
"Be careful with this, as you’ll need to guide that agent through the transaction yourself. While it might lower your commission, it doesn’t always lead to the best financial outcome," cautions Glenn Phillips, CEO of Lake Homes Realty.
And not all newer agents charge less. According to Vestuto, a Las Vegas real estate professional, newer agents often face higher brokerage fees and stricter oversight, limiting their ability to offer competitive commission rates.
It's also worth remembering that some strong agents simply won't discount — and that's a signal, not a red flag.
“My sellers do not have any room to negotiate my commission, regardless of the home's price point,” says Justin Chau, a Realtor with eXp Realty of Greater Los Angeles in San Gabriel, CA. “The sellers are hiring me for my service; I cannot promise the same quality service at a discounted fee.” In his market, where $1 million-plus homes are the norm and hot ones sell within a week, that confidence is often justified.
Experience shows up in the numbers. While 49% of agents sell only one or zero homes a year — and 70% sell five or fewer[5] — seasoned agents with 6–15 years of experience typically close 12 deals a year working full-time. Many sellers recognize that value: 43% say the guidance of a trusted agent would boost their confidence during the sale.[3]
7. Use the same agent for multiple transactions
Using the same agent to sell your current home and buy a new one can be a savvy negotiation strategy. By handling both transactions, the agent earns a higher total commission, making them more likely to negotiate lower rates on the selling side.
For example, I once worked with a client who sold their home to purchase a new construction property. I agreed to a reduced commission on the sale because I also earned a 2.5% commission on the purchase, resulting in a combined payout of about 5%.
This approach also offers added convenience since one agent gains a complete understanding of your preferences and needs, streamlining both transactions. It’s a win-win that can lead to smoother experiences and better deals for both parties.
👋 When to walk away from negotiations
Negotiations are about finding a win-win solution, but sometimes the best move is knowing when to walk away. If the terms don’t align with your needs or expectations, it’s okay to step back.
Set clear boundaries and deal-breakers before you start negotiating — and be ready to stick to them.
For example, maybe you expect the agent to handle open houses and staging recommendations. If they charge additional fees for these services beyond the commission rate, you may want to walk away.
Walking away can be a powerful tactic, but it’s important to use it strategically. Stand firm on what’s essential for you, but stay open to some compromise. The goal is to find common ground.
Who pays realtor fees (after the 2024 NAR settlement)?
Sellers still typically foot the bulk of the commission bill, but the rules around the buyer's agent's fee changed with the 2024 NAR settlement. Here's how it breaks down.
Commission is usually split between two agents: the listing agent (who represents the seller) and the buyer's agent. The seller pays the listing side directly out of sale proceeds.
What changed is the buyer's side. Nearly two years after the landmark settlement, buyer-agent fees are no longer advertised on the MLS, and direct negotiation between a buyer and their agent is now standard.[6] So who pays? Buyers are now formally responsible for their agent's fee — but savvy sellers often still cover it, typically 2–2.5%, through negotiated concessions to attract more buyers and stronger offers.
“Once they hear my explanation, most still pay the buyer's agent, especially with homes sitting longer on the market,” says Brandi Brooks, a realtor in Memphis, TN, who notes that more sellers are asking about the consequences of not offering a commission.
Buyers can negotiate their side, too. Under the new rules, a buyer must sign an agreement outlining their agent's fee before work begins — so it's worth discussing upfront what happens if the seller doesn't cover the full amount. An experienced agent can help either side weigh whether a buyer's agent fee concession makes sense. For the full picture, see our guides to the NAR settlement and seller concessions.
2% commission realtors and other low-fee alternatives
A 2% commission realtor charges a 2% listing fee instead of the traditional 2.5–3% — and yes, plenty of agents will work at that rate, especially through companies that pre-negotiate it in bulk.
There are two ways to get there. Limited-service agents cut the rate by cutting the service, so you may lose help with pricing, marketing, or negotiating. Pre-negotiated full-service brands (like Clever or Ideal Agent) lower the rate without lowering the service by feeding agents steady business in exchange for a discount.
Will a realtor accept 2% commission? Often, yes — but a traditional agent negotiating solo will usually only go that low for a high-value home, a repeat client, or a property that's sure to sell fast. Pre-negotiated services get there more reliably.
Sell with a top agent in your market, get a pre-negotiated commission savings!
- Choose between top local agents agents from brands like Century21 and RE/MAX
- Get a pre-negotiated 1.5% listing fee (half the typical rate)
- Clever's service is 100% free with no obligation
- You only pay your agent's low listing fee when your house sells
How to avoid realtor fees when selling
You can't usually avoid all realtor fees, but you can cut the biggest one — the listing commission — with three real paths. Each comes with a trade-off.
- Sell for sale by owner (FSBO). Skip the listing agent entirely and handle pricing, marketing, showings, and negotiations yourself. You save the listing fee, but FSBO homes typically sell for less and take longer.
- Use a flat-fee MLS service. Pay a few hundred dollars to get your home on the MLS without a full-service listing agent — you still do the legwork, but you gain buyer visibility.
- Hire a discount broker. Keep full or near-full service at a reduced listing rate, splitting the difference between FSBO and a traditional agent.
Even if you skip the listing agent, you'll often still offer a buyer's-agent concession to attract offers — so you rarely avoid every fee. Weigh the savings against the time, effort, and potential lower sale price.
How much can I save by negotiating?
Even a small reduction adds up. Here's what different rate cuts save on three sale prices:
| Rate reduction | $500,000 sale | $700,000 sale | $1 million sale |
|---|---|---|---|
| 0.25% | $1,250 | $1,750 | $2,500 |
| 0.50% | $2,500 | $3,500 | $5,000 |
| 0.75% | $3,750 | $5,250 | $7,500 |
| 1.00% | $5,000 | $7,000 | $10,000 |
What's the lowest commission a realtor will take?
Realtor commissions can go as low as 1.5% compared to the typical 2.5–3% most listing agents charge. However, rates that low often come from limited-service agents who don’t provide full support — help with pricing, marketing, or negotiating may be scaled back.
Traditional, full-service agents from top brokerages rarely lower their commissions. When they do, it’s usually a small discount (maybe 0.5%) and more probable for high-value homes, repeat clients, or properties that are likely to sell quickly.
That means it’s very difficult to get the lowest possible rate just by negotiating on your own.
Low-commission companies like Clever Real Estate solve this by pre-negotiating 1.5% listing fees with top, full-service agents from trusted brokerages like RE/MAX and Keller Williams. You get the same expert service and support — at a fraction of the typical cost.
Use the calculator below to compare the average listing fee with a low commission rate.
Total realtor fees
When you find your agent through Clever, your listing commission is just 1.5% instead of the average 2.88%.
Why trust us
This article combines my personal experience as a real estate agent with insights from dozens of active industry professionals, giving you advice grounded in real-world expertise. I’ve successfully negotiated countless deals, both as an agent and an investor, which provides me with a unique perspective on what strategies actually work.
We also leveraged commission data and survey insights from Clever’s public relations team and consulted numerous industry experts to understand how the recent NAR settlement is shaping commission trends and negotiation strategies.
We gathered our commission rate data from a February 2026 survey of 533 of agents nationwide. The survey asked agents to report typical commission rates for buyer and seller agents in their respective markets. This large sample size ensures a broad representation of various real estate markets, from urban to rural areas.
For further validation, you can explore my real estate experience and client feedback on my Zillow profile, or watch my recent appearance on Yahoo! Finance, where I shared insights into the changing real estate market.
The tips in this guide are backed by reputable data sources, including the National Association of Realtors, ensuring they're practical, reliable, and up-to-date. I aim to equip you with the knowledge and confidence to secure the best possible deal for your home sale.Or skip the negotiation entirely. Match with a full-service agent who has already agreed to a low rate (for example, 1.5% through Clever)
FAQ about negotiating realtor fees
Most agents charge 2.5% or 3% of the sale price on the listing side. According to our February 2026 survey of 533 agents across the U.S., the total commission averages 5.70%. The rate isn't set by law and varies by location, market conditions, and agent.
Yes. Some agents will reduce their commission to win your listing or close a deal, especially if the home is high value or expected to sell quickly. Others offer discounts in slow markets, or when they represent both the buyer and seller in the same transaction (dual agency).
Start by respectfully asking whether the agent is open to negotiating. Point to factors like your home's strong marketability, high price point, or local market conditions, and mention you're comparing agents. For example: “I've talked to two other agents who quoted 2.5%. Are you able to match that?”
Not necessarily. Many agents offer full service at discounted rates, especially through low-commission brokerages like Clever Real Estate or Ideal Agent, both of which vet their agents for quality. Clever offers a reduced 1.5% listing fee; Ideal Agent offers 2%.
Often, yes. Many agents will list at 2%, particularly for high-value homes, fast-selling properties, or repeat clients — and pre-negotiated services like Clever secure low full-service rates as a matter of course. A traditional agent negotiating one-on-one is less predictable, so it helps to compare two to three agents and come prepared with local rate data.
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