Paying a 3% commission rate to a listing agent has long been the norm in real estate, but it’s a costly standard. On a $442,000 home (the current U.S. median listing price), a 3% commission amounts to $13,260 just for the seller’s agent. Add in the buyer’s agent commission, and your total fees could reach nearly $27,000!
The traditional 3% commission model has roots in a century-old policy established by the National Association of Real Estate Exchanges (now the NAR), which encouraged listing agents to split commissions with buyer’s agents. While that policy once kept fees around 2.5%, commissions steadily climbed over time, partly because offering higher rates attracted more buyer’s agents.
But sellers don’t have to pay that much. Clever Real Estate pre-negotiates 1.5% listing fees with top-rated agents from brokerages like Keller Williams and RE/MAX — cutting your commission in half without sacrificing service. Simply take this short quiz, and get matched with top-rated agents offering a 1.5% listing fee.
Also, a major settlement involving the NAR is shaking up that system. With the long-standing commission-sharing rule set to be dismantled, more sellers are exploring ways to negotiate lower rates or bypass the traditional model entirely.
Best 3% commission realtor alternatives
| Company | Listing fee | Locations |
|---|---|---|
| Clever Real Estate | 1.5% (min. $3,000) | Nationwide |
| Redfin | 1.5% (min. fee varies) | 26 states (select markets) |
| Ideal Agent | 2% (min. $3,000) | Nationwide |
Clever Real Estate, Redfin, and Ideal Agent are low commission realtors that offer alternatives to the traditional 3% listing commission, but they differ in how they deliver savings and service.
Clever Real Estate offers a rare combination of low fees and top-tier service. It connects you with full-service agents from major brokerages like Keller Williams and RE/MAX for just a 1.5% listing fee - half of the usual 3% rate - and it's available nationwide. You can compare multiple agent matches, and Clever’s concierge support helps ensure you're confident in your choice. It’s one of the few services that combines personalized attention with meaningful savings.
Redfin also offers a 1.5% listing fee, also half of the usual 3% rate, but it takes a different approach: the company uses in-house agents who often manage more clients than traditional realtors. That high-volume model works best for sellers with move-in-ready homes in hot markets who don’t need much hand-holding.
Ideal Agent offers a more traditional full-service experience, but with a higher listing fee of 2%. It pre-negotiates this rate with agents nationwide — a decent discount off the standard 3%, but not as competitive as Clever’s or Redfin's 1.5%. Ideal Agent also only matches you with one agent at a time, which limits your ability to compare and find the right fit.
How the 3% commission model works
The 3% commission model splits a total commission of 6% between the buying and selling agents. When the sale closes, the home seller typically pays all the realtor fees. Then, the selling agent divides the commission between both parties.
Here’s what a 6% total commission rate looks like at different price points:
- $24,000 on a $400,000 home sale
- $36,000 on a $600,000 home sale
- $60,000 on a $1,000,000 home sale
Each realtor's commission rises proportionally with the selling price, but the required work rarely reflects that pay increase.
Current technology allows most buyers to find homes they like before showings, eliminating much of the time requirement many past buying agents needed to hunt for houses on their buyer’s behalf.
And in hot markets, selling agents spend less time looking for potential buyers than they would otherwise.
Changes in realtor commissions are here
In November 2023, a lawsuit against the NAR challenged the century-old process of sellers paying for both commissions, claiming that the structure overinflates commission prices.[1]
While the NAR denied any wrongdoing, the organization agreed to a nationwide settlement in March 2024. The following rule changes officially took effect on August 17, 2024:
- Listing agents can no longer advertise buyer agent commissions on the MLS
- Buyer agents must sign a written agreement with clients before showing homes
- Buyers are now responsible for negotiating and paying their agent’s fee
These changes have reshaped how real estate commissions work — giving both buyers and sellers more power to negotiate. Early signs suggest the shift is putting downward pressure on fees: In Q4 2024, the average buyer’s agent commission fell to 2.37%, down from 2.45% the previous year, according to Redfin.[2]
How to pay a 3% total commission rate
Even with the new policy changes, it may take a while to reap the benefits of the NAR settlement. But if you want to sell your home soon, you can access lower commissions without waiting for new policies to take effect. Here’s how:
1. Reduce both agent's commission
You can negotiate realtor commission lower for a 1.5% rate from each realtor, but the process is challenging. When negotiating, it’s essential to communicate clearly and identify your leverage, including:
- Your home’s value and buyer demand
- The number of listers in your area
- Potential referrals for future sales
Highlighting these potential selling points could sway agents to lower their commission fees and save you money.
Note: While commission may seem like the top priority for sellers, it often isn’t. According to the National Association of Realtors, only 4% of sellers said an agent’s commission was the most important factor in choosing who to hire. A far greater percentage — 35% — prioritized the agent’s reputation, while 21% valued honesty and trustworthiness most.[3]
This data reinforces the idea that sellers — and agents — are often focused on value and results, not just price.
A better alternative: Rather than opting for stressful negotiations, you could partner with a low commission real estate agent, also known as a discount broker. Many discount brokers offer comparable services for 1.5% or less and negotiate the same rate with buyer’s agents.
2. Eliminate one agent from the sale
Dual agency is a real estate tactic where one agent represents the buyer and the seller during a real estate transaction. Working with a dual agent can reduce the overall commission to 3% because they don’t need to inflate their realtor fees to cover two agents.
If you go this route, it’s important to remember that a dual agent is serving you and the potential buyer. This structure may encourage your realtor to cater to one party’s needs over the other.
Another drawback of dual agency is that it isn’t available everywhere. The strategy is illegal in Alaska, Colorado, Florida, Kansas, Maryland, Texas, Vermont, and Wyoming.
3. Sell to a cash home buyer
Selling to a cash home buyer is a great way to eliminate commissions. Rather than working with an agent, you sell directly to a company or individual buyer.
This process simplifies selling your home, but it comes with a couple of drawbacks:
- You won’t make as much profit. Cash buyers typically buy homes as-is and pay well below fair market value for the convenience of avoiding the traditional process. Getting multiple offers is crucial to see who offers the best deal.
- You’re selling "by owner." Selling your home without the safety net of a real estate brokerage requires extensive knowledge of the market. Unseasoned sellers should seek the help of a real estate expert to ensure the cash deal is legit.
Clever Offers provides a better option. The free service helps you get the best deal by shopping your property to top cash buyers — from national companies to local investors. It’s free, and there’s no obligation to accept an offer. Plus, a licensed Clever concierge can help you understand the terms, spot red flags, and negotiate the strongest offer.
The bottom line
The 3% commission model, in which a home seller pays a listing agent a 3% rate, is no longer the default, and savvy sellers are already taking advantage of new ways to cut costs.
Thanks to the NAR settlement and increased transparency around fees, homeowners now have more power than ever to control what they pay. Whether you negotiate directly, explore dual agency, or work with a trusted service like Clever Real Estate, you can avoid overpaying and still get expert support. Take this short quiz to get matched with top-rated agents who offer full service for a 1.5% listing fee.
