Realtor fees are typically the largest cost of selling a house.
The nationwide average commission rate for a seller's agent is 2.82% of the home's sale price. Sellers also commonly cover the buyer's agent fee, which averages 2.75%. That's a total of 5.57% in realtor fees — more than $22,000 on a $400,000 home sale!
The good news is you have several options to save on realtor fees. Some strategies can save you thousands without hurting your chances of a successful sale, while others may put your timeline or bottom line at risk.
Below, we break down how each method works, the pros and cons, and whether it’s a good fit for your situation.
When you sell a home, you typically pay realtor commission for both your listing agent and the buyer’s agent — about 5–6% of the sale price combined. You don’t pay this out of pocket. Instead, it’s taken from your sale proceeds at closing.
| Rate | Amount on $500K sale | |
|---|---|---|
| Listing agent fee | 3% | $15,000 |
| Buyer’s agent fee | 3% | $15,000 |
| Total paid by seller | 6% | $30,000 |
Sellers often agree to cover the buyer’s agent fee because it makes their home more attractive and financially accessible to buyers. Most buyers can’t easily pay their agent out of pocket, so having the seller fold the fee into the purchase price allows the buyer to finance it as part of their mortgage and reduces their upfront costs.
After the 2024 NAR lawsuit settlement, sellers can no longer advertise a set buyer’s agent commission in their MLS listings. Instead, buyers and their agents must agree on the rate in writing before agents show homes. Sellers still commonly cover this cost via a concession at closing, but buyers are responsible for anything the seller doesn't cover.
How to save on realtor fees
1. Work with a low-commission agent
Best for: Most sellers, those who want full-service support while maximizing savings
Wrong for: Sellers who want to avoid all commission costs
A low-commission agent is a full-service realtor who charges less than the standard 2.5–3% listing fee. Instead, they may charge as low as 1.5%, while still providing professional pricing guidance, marketing, negotiation, and transaction support.
How does this work? Companies like Clever Real Estate partner with traditional agents from big-name brokerages (Keller Williams, Compass, RE/MAX, etc.) and send them a steady stream of clients. In exchange, those agents agree to charge lower listing fees. Sellers benefit from major savings without giving up full support.
Pros
- Major savings — often thousands per sale
- Full support from top local agents
- No need to negotiate fees yourself
Cons
- Availability depends on your market
Here’s how much you could save by hiring a low-commission agent compared to a traditional agent on a $500,000 home:
| Traditional agent | Low-commission agent | |
|---|---|---|
| Listing agent fee | $15,000 (3%) | $7,500 (1.5%) |
| Buyer's agent fee | $15,000 (3%) | $15,000 (3%) |
| Total cost | $30,000 | $22,500 |
| Savings | — | $7,500 |
If you want real savings without added risk, hiring a low-commission agent is the smart option. Companies like Clever Real Estate make it simple by pre-negotiating 1.5% listing fees with top local agents, then matching you with those who have the right experience for your sale. Sellers who find an agent through Clever save an average of $7,000. Find the top 1.5% agents near you.
- Answer 5 simple questions about your sale
- Get matched with 2–3 top local agents in minutes
- Compare options, choose the best fit, save up to 50% on fees
2. Try negotiating realtor fees yourself
Best for: Sellers who have desirable homes, are in a hot market, or already have a buyer lined up
Wrong for: Sellers who lack leverage or aren’t comfortable negotiating
Sometimes, you may be able to negotiate a lower commission rate with your listing agent yourself. This works best if you bring strong selling conditions to the table — like a high-value property, a hot local market, or an easy-to-sell home that doesn’t require much marketing.
That said, most agents don’t have much wiggle room. Many work under brokerages with set fee structures, and even independent agents are often reluctant to reduce their rates by more than 0.5–1%. Only 22% of sellers discuss commission with their agents and successfully secure a lower rate.[1]
Pros
- No need to switch agents if you already have someone in mind
- Potential savings if you have leverage
Cons
- Savings are usually modest
- Negotiating can be uncomfortable
- Many agents simply won’t budge
Here’s how much you could save if your listing agent agrees to cut their fee from 3% to 2.5% on a $500,000 home:
| Traditional agent | Traditional agent with negotiated rate | |
|---|---|---|
| Listing agent fee | $15,000 (3%) | $12,500 (2.5%) |
| Buyer's agent fee | $15,000 (3%) | $15,000 (3%) |
| Total cost | $30,000 | $27,500 |
| Savings | — | $2,500 |
If you already have an agent in mind, it's absolutely worth it to negotiate their commission rate. Come prepared with a strategy — whether it’s showing why your sale will be quick and easy or offering other incentives — and be clear and reasonable about the rate you’re asking for.
Keep in mind that most agents will only lower their fee slightly, so your savings may be modest compared to using a company that offers pre-negotiated low rates.
3. Sell without a realtor
Best for: Experienced sellers in hot markets who want full control of the sale
Wrong for: First-time sellers, anyone on a deadline, or those with unique or difficult homes
Selling without a realtor — also known as 'for sale by owner' (FSBO) — means you sell your home without hiring a listing agent.
This eliminates the 2.5–3% listing fee, but it also means you’re responsible for all the work: deciding on pre-listing improvements, staging, photographing, pricing, creating the listing, marketing, vetting buyers, negotiating, handling paperwork, and so on. Many sellers underestimate the amount of time and effort a home sale requires.
Also, selling FSBO isn't free. It's often worth it to pay for a flat fee MLS company (about $300–400) to get your property on the multiple listing service (MLS), which means many more buyer’s agents will see your listing. You may also want to cover the 2.5–3% buyer’s agent fee. You're not obligated to pay it, but it's common for sellers to do so, and represented buyers may not be able to afford your home otherwise.
One of the biggest downsides to selling without an agent is that FSBO homes usually sell for much less ($55,000 on average)[2] than homes represented by an agent. So even if you save a few thousand on listing agent fees, you may walk away with tens of thousands less overall.
Pros
- Avoid listing agent commission entirely
- Full control over the selling process
Cons
- FSBO homes usually sell for less and take longer to sell
- Risk of legal or negotiation mistakes
- Time-consuming and stressful for most sellers
Here’s a simplified example of what your bottom line might look like selling FSBO versus with an agent on a home worth $500,000:
| Traditional agent | FSBO | |
|---|---|---|
| Listing agent fee | $15,000 (3%) | $0 |
| Buyer's agent fee | $15,000 (3%) | $15,000 (3%) |
| Total cost | $30,000 | $15,000 |
| Savings | — | $15,000 |
| Sale price | $500,000 | $445,000 |
| Net proceeds | $470,000 | $430,000 |
Selling FSBO offers big savings on commission, but it’s risky and often leads to a lower sale price that far outweighs the savings. This method may work for those who are highly experienced in real estate. But for most sellers, it's worth it to pay an agent to handle the workload and maximize your sale price.
4. Sell to a cash buyer
Best for: Sellers who need to sell as fast as possible, are in distress, are facing foreclosure, or have homes in poor condition
Wrong for: Sellers who want fair market value, can afford to wait for the right buyer, or have a desirable home
Cash buyers — including investors, iBuyers, and “we buy houses” companies — purchase homes directly, often as-is, with no agents involved. These sales are fast, simple, and eliminate realtor fees entirely.
The trade-off? Price. Investors commonly offer 30% below the home's after-repair value, minus the cost of estimated repairs. These buyers are looking for a steep discount so they can make a worthwhile profit when they resell the property.
Pros
- No realtor fees at all
- Very fast closings (sometimes within a week)
- Sell as-is, no repairs or showings needed
Cons
- Huge reduction in sale price
- Some buyers are scams or use aggressive tactics
- Often no room for negotiation
Here’s how selling to a cash buyer might compare to a traditional sale on a home worth $500,000:
| Traditional agent | Cash buyer | |
|---|---|---|
| Listing agent fee | $15,000 (3%) | $0 |
| Buyer's agent fee | $15,000 (3%) | $0 |
| Total cost | $30,000 | $0 |
| Savings | — | $30,000 |
| Sale price | $500,000 | $350,000 |
| Net proceeds | $470,000 | $350,000 |
Selling to a cash buyer eliminates realtor fees — but the steep discount in sale price completely negates the savings. This route only makes sense if you need a fast, as-is sale and are willing to sacrifice profit for convenience.
Bottom line: What's the best way to save on realtor fees?
There are multiple ways to save on realtor fees — from negotiating with your agent to selling FSBO or going directly to a cash buyer. But each comes with trade-offs.
Negotiating yourself may lead to a reduced rate, but likely not by much. Selling FSBO or to a cash buyer can eliminate commissions altogether, but the risks and lost value usually outweigh the savings.
For most sellers, low-commission agents strike the best balance: you get full professional support while saving thousands.
If you want maximum savings without the stress or risk, consider using Clever’s free service to find a low-commission agent. Clever partners with agents from top brokerages and pre-negotiates low 1.5% listing fees — so you can get full service from a trusted local realtor for half the typical price.
Try Clever's free agent matching service: compare top agents in your market, get built-in commission savings.
- Choose from top local agents from major brands like Compass 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
Click below to view agents in your area and see how much you could save!
FAQ
Are realtor fees negotiable?
Yes, realtor fees are negotiable, but most agents won’t lower their rates unless you have strong selling conditions — like a hot market, a high-demand home, or a buyer already lined up. If you want savings without the hassle of haggling, consider working with a low-commission agent instead.
How much can I save with a low-commission company?
Low-commission companies help you save on listing fees. Some offer a reduced rate of 1.5% instead of the traditional 3%, which would save you $7,500 on a $500,000 home.
What is the lowest commission a realtor will take?
Some regional discount brokerages offer 1% listing fees, but 1.5% is more common for full-service agents. Anything lower usually comes with limited services.
How do I ask my realtor to reduce commission?
Be direct but polite when asking your realtor to reduce their commission. Highlight factors that make your sale easier, like a high-value home, strong market demand, or an already lined-up buyer. You can also discuss options like a sliding scale based on the final sale price to reach a mutually agreeable rate.
