Selling a house isn’t cheap, and realtor fees are typically the largest associated cost.
The average real estate agent commission rate home sellers pay nationwide is approximately 5.32%, which doesn't include other seller closing costs like transfer taxes and title insurance. For a $417,700 home - the current median U.S. home sale price[1] — that translates to more than $20,000!
The good news is there are many ways to save on realtor fees, but not all are created equal! Some options offer legitimate and serious savings. Others present serious risks and drawbacks that arguably outweigh the potential benefits.
One of the best ways to save on realtor fees is to work with a reputable company that pre-negotiates BIG discounts on your behalf. For example, Clever Real Estate connects sellers with top agents from leading brands, like RE/MAX or Keller Williams. Its partner agents offer a low listing fee of just 1.5%, saving you thousands on commission! Find out how much you can save!
How to save on realtor commission fees
If you’re looking to save on realtor fees, you have several different options:
1. Try to negotiate realtor fees yourself
You may be able to negotiate a lower commission rate with your listing agent yourself. But this route can be difficult — especially if you’re not an experienced negotiator — and the agent will unlikely be willing to drop their rate by a significant margin.
» MORE: Should you try to negotiate with your listing agent?
2. Work with a company that negotiates lower fees for you
Some companies will connect you with local real estate agents and negotiate lower rates on your behalf. Because they send the agents a steady stream of new business, they have more leverage to get you savings without sacrificing service.
» MORE: Should you work with an agent finding service?
3. Sell with a discount real estate broker
Discount real estate brokers offer reduced listing fees for home sellers, and no negotiations are required. But there’s usually a catch. For example, many discount brokers handle more customers per agent to compensate for their lower rates, limiting the agents’ ability to provide hands-on, dedicated service and support.
» MORE: Should you sell with a discount real estate broker?
4. Hire a limited-service agent or flat-fee MLS company
Some agents and brokers will offer limited services for a low flat fee. Others may offer a la carte pricing, where you can pick and pay for only your desired services. If you want to list your home for sale by owner (FSBO), these services offer some key benefits of working with a realtor without the hefty price tag.
» MORE: Should you hire a flat-fee MLS company?
How saving on realtor fees works
Selling a house is expensive, and realtor fees are typically your highest individual cost. Even a minor fee reduction could save you thousands of dollars.
In a conventional home sale, the commission — we’ll use 6% for simplicity’s sake — comes out of the seller’s proceeds and is usually paid by the seller to the two agents:
- The listing fee (2-3%) goes to the listing agent for helping the seller market the home
- The buyer’s agent fee (2-3%) goes to the buyer’s agent for bringing their client to purchase the home
When you save on realtor fees, the rate reduction usually comes from the listing agent or broker’s fee. So if you save 1.5% on commission for a 4.5% total fee, the overall breakdown might look something like this:
Fee | Rate |
---|---|
Listing fee | 1.5% |
Buyer’s agent fee | 3% |
Total | 4.5% |
Buyer commission change are here!
After losing a lawsuit over their practices in 2024, the National Association of Realtors agreed to change how real estate professionals do business.
As of August 2024, buyer's agents are required to sign an "agency agreement" before providing services to a buyer. This agreement has to specify what services the agent will provide, and how much they will get paid.
Real estate agents are no longer allowed to split commissions with one another. In the past, it was common for a listing agent to collect a 6% fee from the seller, and then split this fee with a buyer's agent who brought a buyer. Going forward, buyer's agents will have to negotiate their fee directly with the buyer they represent.
Learn more about how the real estate commission changes will impact buyers and sellers.
Why are listing agents and brokers willing to work for less?
Listing agents and brokers may drop their rates to remain competitive and attract new business.
Several factors are reshaping consumer expectations on what’s reasonable for an agent to charge for helping sell a home:
- Increased competition among agents for new clients is driving commission rates down (albeit very slowly) across the country[2]
- Discount services with built-in savings - like Redfin and Clever - are gaining popularity
- The internet is making the home selling and buying process more efficient and consumer-driven — i.e., agents are doing less work for their clients than they used to
As a result, many agents and brokers must be more flexible regarding their pricing, service offerings, and overall approach to signing new seller clients.
Many have found that lowering their rates can attract new clients and close more deals, ultimately making up for the price reductions.
» What company charges the lowest real estate commission?
How much can you expect to save on realtor fees?
Typically, achieving more than a 2-3% reduction in total commission fees may involve significant compromises in service quality.
Negotiating realtor fees directly with agents might yield some savings, but don't anticipate substantial reductions from their standard rates; a decrease of 0.5—1% is often the best-case scenario.
However, alternative options like discount brokers or agent matching services can offer substantial savings, sometimes up to 50-70% below the standard rates of most listing agents.
Given the high stakes of a home sale, even a modest fee reduction can translate to significant dollar savings. For instance, selling a $500,000 home with an agent offering a 1.5% listing fee could potentially save you around $7,500.
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!
Should you try to negotiate realtor commission fees yourself?
You should absolutely try to negotiate lower fees with your realtor — but make sure you’re going in with realistic expectations. A recent industry study found that only 22% of home sellers discussed commissions and successfully negotiated a lower rate with their agent.[3]
Some brokerages have rigid fee structures. In these cases, agents cannot lower their commission rate even if they want to.
Assuming the realtor does have control over their fee structure, you might be able to negotiate a lower commission rate if:
- You’re selling a high-value home
- Homes in your area are selling fast
- You already have a buyer lined up
- It’s the off-season and agents are hungry for new listings
- The agent is newer and looking to build their reputation
Not in a good position to negotiate due to your local market or home price? Clever Real Estate pre-negotiates lower listing rates of just 1.5% so you can save on realtor fees without the hassle.
Should you use a referral or agent matching service?
✅ Benefits
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❌ Risks
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Referral or agent matching services connect individual sellers with local agents. In some cases, these services may pre-negotiate lower commission rates; in other cases, they simply act as a middleman to enable an initial meeting.
But why would a traditional agent offer a full-service experience for a fraction of their typical rate?
Agent matching services generate a steady flow of new business for their partner agents at zero upfront cost.
In other words, the agents spend less time and money upfront to acquire new customers. This allows them to charge less and still earn a solid profit on each sale.
Is an agent matching service right for you?
👍 Good for sellers who:
- Want to work with top agents from major brands and regional brokerages
- Want savings without the same service-quality risks that come with a discount brokerage
- Want the traditional one-to-one customer service experience
👎 Bad for sellers who:
- Want to completely avoid listing on the open market
- Already picked out their agent
Should you hire a discount real estate broker?
✅ Benefits
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❌ Risks
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Discount real estate brokers offer big potential savings — but the risks can also be significant.
Many of these companies claim they offer full service, but relative to a traditional realtor, the scope or quality of these services may be reduced substantially.
Is a discount broker right for you?
👍 Good for sellers who:
- Don’t need a ton of communication from their agent
- Don’t mind a team-based or remote service approach
- Don't need an agent’s help with every phase of the sale
👎 Bad for sellers who:
- Have complicated selling situations
- Want an agent who communicates promptly and frequently
- Put a high value on the one-on-one agent/client relationship
» MORE: What to know about discount real estate brokers
Should you sell without a realtor?
✅ Benefits
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❌ Risks
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The most obvious way to save on commission is to sell your house without a realtor and avoid the realtor fees entirely.
Is this possible? Absolutely. But getting a home sale across the finish line without the guidance and support of an experienced professional is easier said than done.
Let’s look at a couple of the most popular ways of selling a home without an agent, and go over the pros and cons.
Selling 100% for sale by owner (FSBO)
This is exactly what it sounds like— you’re selling your home alone, with no help from an agent.
Note that many FSBO sellers use a flat-fee MLS listing service to get their home some visibility. For a one-time flat fee (average is around $299-399), these services list your property on the local MLS, where buyer’s agents can see it.
Is a FSBO sale right for you?
👍 Good for sellers who:
- Place a high value on independence
- Have some experience in the real estate industry
- Have a hot property in a booming market (i.e., the property will sell itself)
- Who are willing and able to endure an extended sale timeline
👎 Bad for sellers who:
- Are inexperienced home sellers and need a lot of step-by-step guidance
- Have a unique property in a slower market
- Need to sell on a tight timeline
- Have full-time jobs and obligations that make it tricky to manage a time-consuming home sale
Selling to an iBuyer
iBuyers are companies that use advanced technology and data analytics to make fast, all-cash home offers, often sight unseen.
Is an iBuyer right for you?
👍 Good for sellers who:
- Value convenience over getting the best possible price
- Need to sell before they buy their next home
- Have qualifying homes and need to sell as quickly as possible
👎 Bad for sellers who:
- Want to get the best possible price for their home
- Need to sell older or unconventional homes
- Plan to sell in markets where iBuyers don’t operate
» MORE: The ultimate guide to iBuyers
Selling to a We Buy Houses for Cash company
✅ Benefits
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❌ Risks
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"We Buy Houses for Cash" companies are property investors who will typically buy any home in any condition or location for — you guessed it — cash.
Is a cash sale right for you?
👍 Good for sellers who:
- Need to sell quickly and are less concerned about price
- Have distressed or difficult-to-sell properties
- Are unwilling or unable to make necessary repairs and improvements before listing their homes
- Don’t want to deal with the hassle of selling on the open market
👎 Bad for sellers who:
- Want to get top dollar for their homes
- Have desirable homes in high-demand markets
- Plan to sell homes in relatively good condition
- Aren’t under external pressures to sell fast
» MORE: Best companies that buy houses for cash
Sell your house and save on commission
As we’ve shown, saving on realtor fees is very possible. The catch? You may be trading a lower rate for a subpar experience or outcome.
That being said, when you look at all the possible ways to cut down on commission, it’s clear that agent matching services offer the best value.
Sellers who use an agent matching service get a traditional full-service agent for a fraction of their typical rate.
Of course, there’s no one-size-fits-all solution for selling your home. Everyone’s situation is unique, and each seller needs different things from their agent.
The best approach is to think about what you really want and don’t want out of your home-selling experience and consult a professional to help you achieve it.
If you're weighing your options for buying or selling a house, Clever can help!
Our fully licensed concierge team can answer your questions and provide objective advice on getting the best outcome with your sale or purchase.
When you enter your info below, we'll ask you a few questions about your situation via a short form. Then our concierge team will be in touch shortly to help.
This service is free, and there’s never any obligation to move forward with us.
FAQ
Are realtor fees negotiable?
Like most things in real estate, your agent's commission fees are 100% negotiable. If you're in a seller's market, have a desirable home in a great area, or already have a buyer lined up, you may be able to negotiate a lower listing fee. Taking on pricing conversations with a professional negotiator can be tricky. Many sellers can get all the savings without haggling by working with a low commission real estate agent instead.
How much can I save with a low commission company?
Typically, real estate agents charge about 5-6% of your purchase price in commission fees. Half of that goes to the listing agent, the other 2-3% goes to the buyer's agent. With a low commission real estate company, though, you can save thousands of dollars on your listing fees. Some companies offer listing rates as low as 1.5%. On a $500,000 home, that could save you $7,500!