5 Steps to Negotiating Realtor Fees in 2025

Negotiating realtor commission rates is now more achievable than ever, especially with recent changes resulting from the National Association of Realtors (NAR) settlement.

This shift has increased transparency, requiring agents to clearly explain their rates and included services. As a result, many now focus on value-added offerings like professional staging and advanced digital marketing to justify their fees.

To help you negotiate better rates, we’ve drawn on insights from real estate professionals and proven negotiation strategies from Chris Voss’s book, Never Split the Difference. By blending expert advice with proven negotiating techniques, we’ve crafted actionable tips to help you negotiate effectively and save thousands.

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Negotiating realtor commissions: Key tips

Negotiating realtor fees can save you thousands, but it takes preparation and strategy. Here's how to get started:

• Research average commission rates in your area
• Identify your negotiating leverage
• Build rapport
• Set a realistic target commission rate
• Communicate clearly

Below, we've included tips from real estate experts and weaved in strategies like tactical empathy, calibrated questions, and anchoring.

1. Research average commission rates

Realtor commission rates vary depending on your location and market conditions. Your state’s average commission rate provides a helpful benchmark. Knowing this number arms you with the data needed to negotiate effectively.

Use this data to anchor your negotiation, a tactic highlighted in the book, Never Split the Difference. Anchoring sets the stage for all further discussions.

Mention the average commission rate early. For example: “I know the typical rate here is 5%, but I’d like to discuss options that might work better for both of us.” This frames your ask without creating any potential conflict with the agent.

It also helps to interview multiple agents to compare rates, learn about their services, and create competing bids for your listing.

In a buyer’s market where competition among agents is high, agents may be more willing to negotiate lower rates. In a seller’s market where homes sell quickly, it may take more effort to justify a fee reduction.

2. Identify your negotiating leverage

Before initiating negotiations, consider factors that might work in your favor. These include:

Your home's value. Expensive homes offer higher commission payouts for agents, even at reduced rates. For instance, a 3% commission on a $1 million home equals $30,000, but a 2.5% rate still nets $25,000.

Highlight your property’s appeal with a statement like: “This is a premium property in a sought-after neighborhood, which should attract significant interest and result in a quick sale.” This uses tactical empathy, as Voss recommends, to acknowledge the agent’s potential earnings while paving the way for a potential commission reduction.

Market conditions. Limited inventory and high demand may encourage agents to reduce their rates for a fast sale.

Use data from a website like Zillow or Realtor.com to support your case: “Homes in this market are selling within days, so we’re looking at a fast transaction.”

Dual agency. When one agent represents both the buyer and seller, they earn both sides of the commission. This setup may allow for more flexibility in negotiations.

Note: Dual agency is prohibited in Alaska, Colorado, Florida, Kansas, Maryland, Texas, Vermont, and Wyoming.

Referrals. Offering referrals to other potential clients can be a strong bargaining chip. Agents value opportunities to grow their client base, so you might say: “I have friends looking to sell soon, and I’d be happy to recommend you if this goes well.”

Bundling services: If you’re buying and selling a home with the same agent, they may offer a discount to secure both transactions. Frame it as a win-win: “I’d like to keep things simple by working with you on both transactions.”

Assessing these factors will help you gain a clearer sense of your negotiating power and how to approach the discussion.

3. Build rapport before negotiating

Before diving into commission discussions, take time to build rapport with your agent. Establishing a mutual understanding and respect can make negotiations smoother and more productive.

For example, recognizing an agent’s achievements can create goodwill. You might say something like, “I noticed you sold a home in my neighborhood above asking price—that’s impressive!” Positive reinforcement can make agents more open to negotiating.

You can also use mirroring—a technique where you repeat the last few words of what someone says. As Voss emphasizes, mirroring can help build a connection and encourage the other person to open up. For example:

• Agent: “I focus heavily on digital marketing to drive sales.”
• You: “Digital marketing to drive sales? Can you tell me more about that?”

4. Set a realistic commission rate target

While commissions are negotiable, it’s important to set realistic expectations. For instance, seasoned agents who typically charge 3% are unlikely to offer significant reductions unless you use a service like Clever or UpNest, which pre-negotiates lower rates for clients.

If you’re negotiating independently, aim for a modest reduction—around 0.5% to 1%. Even small reductions can result in significant savings.

Consider proposing a tiered commission rate to incentivize your agent. For instance:

• 3% commission if the home sells above market value
• 2.5% if it sells at or below market value

This aligns your agent’s incentives with your financial goals.

5. Communicate clearly and use tactical empathy

When negotiating, clearly articulate your position and the factors that support your request. For example, highlight your home’s desirability, such as its high market value or location in a sought-after neighborhood.

Use phrases like:

• “I know your time is valuable, and I want to ensure this is worthwhile for both of us.”
• “I’d like to discuss ways to make this partnership work financially for both sides.”

You can also discuss your budget and how a lower commission rate aligns with your financial goals.

For example, maybe you need to net a certain dollar amount on your home sale to afford a down payment on your next home. Agents who understand your perspective are more likely to work collaboratively.

Want to skip negotiations entirely?

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Final step: Negotiate the rate and get it in writing

Negotiations should be respectful and well-informed. If you aim for a 2.5% commission, consider starting at 2% to leave room for compromise.

However, avoid lowball offers that might offend the agent or jeopardize the relationship (you might not want to shoot for a 1% rate, for example).

If your agent refuses a lower rate, ask if they can add value through extra services like additional marketing, professional staging, or drone photography. These upgrades can make your home more attractive to buyers and increase the sale price.

Once you’ve agreed on terms, ensure they’re included in the listing agreement. This document should clearly outline:

• The new commission percentage
• Any additional services or incentives
• Terms for canceling the agreement, including penalties

Review the agreement carefully and, if needed, consult a legal professional to ensure you fully understand its implications.

How the NAR settlement is impacting commissions

The National Association of Realtors (NAR) settlement has introduced key changes that are reshaping commission structures:

• Buyers negotiate with their agent directly. This change places the responsibility on buyers and their agents to negotiate compensation directly, instead of relying on the seller to set and dictate the buyer's agent's fees.
• Service agreements before showings: Agents must secure agreements with buyers before showing homes.
• No MLS commission disclosure: Buyer agent commissions are no longer listed on the MLS.^[1]

These changes aim to increase transparency but have created confusion. Realtor Michael Pellegrini notes: "Most buyers don’t want to sign a contract just to see a home. Real estate used to be about relationships—it doesn’t feel that way anymore."

Sellers, too, are adjusting to the changes. Brandi Brooks, a realtor based in Memphis, TN, explains: "Sellers are asking about the impact of not offering compensation. Many still offer commissions, especially with homes sitting longer on the market."

While some agents struggle, others see opportunities. "Unskilled agents are leaving the business, which is great for the rest of us!," says Angela Kittner, a St. Louis-based realtor.

Negotiating realtor fees: Key takeaways

Here's a quick summary of how to negotiate realtor fees:

• Understand your market. Commission rates vary by state and even by town. Research what agents in your area typically charge before initiating negotiations.
• Be the first to make an offer. Putting a number on the table first creates an anchor that shapes the negotiation process.
• Know your leverage. Factors like your home’s price, local inventory, and buyer demand can strengthen your negotiating power. High-value properties or a competitive market may make agents more willing to reduce their fees.
• Do your homework. Prepare by interviewing multiple agents to compare rates, services, and strategies. Use this information to create competing bids.
• Demonstrate value. Show agents why working with you is beneficial. Offering referrals, bundling services, or highlighting your home’s desirability can help you secure a better deal.
• Collaborate for savings: If agents resist lowering their rate, propose tiered commission structures or request value-added services like professional staging or enhanced marketing.

If you want a discounted rate without negotiation, you might want to work through a service like Clever. Agents on the Clever platform offer work for leading brokerages at a discounted rate without negotiation.

Why trust us

This article is backed by comprehensive research, expert insights, and proven negotiation strategies.

Our findings are supported by two national surveys conducted in late 2024, where we gathered input from over 100 real estate agents across the country. These professionals shared their on-the-ground perspectives about the NAR lawsuit settlement, helping us provide accurate, actionable advice for buyers and sellers.

The article also incorporates negotiation techniques from Chris Voss’s acclaimed book, Never Split the Difference. Voss’s strategies, including tactical empathy and calibrated questions, are integrated into the content to equip readers with the tools to navigate commission discussions with confidence

About the authors

The article was written by Steve Nicastro, Managing Editor at Clever Real Estate, the nation's leading real estate education platform for home buyers, sellers, and investors. Before joining Clever, Steve was a real estate agent in Charleston, S.C., where he closed $6 million in transactions during 2020 and 2021.

Steve also brings a wealth of writing experience as a former personal finance writer for NerdWallet, where his work appeared in USA Today, The Associated Press, U.S. News, and The New York Times.

Real estate journalist Daniel Bortz also contributed to this article. Bortz is a Northern Virginia real estate agent with nearly a decade of experience. He has covered the housing market for prominent publications, including The New York Times, The Washington Post, Money Magazine, Consumer Reports, and Realtor.com.