Is 6% Real Estate Commission Now a Thing of the Past?

Traditionally, selling a home meant paying a 6% real estate commission — split between the listing agent and the buyer’s agent. On a $500,000 home sale, that adds up to $30,000 in fees.

But commission rates have been falling across the U.S., often landing closer to 5.5% or even lower. This shift is partly driven by the rise of discount brokerages and flat fee MLS services, which offer sellers more affordable options.

The recent National Association of Realtors (NAR) settlement accelerates this trend. “This settlement encourages more competitive commission structures, potentially reducing costs,” says Dimitri Zubrich, a Re/Max Affiliates realtor.

While it’s possible to negotiate a lower commission directly with your agent, most sellers find it difficult to do so on their own. Many are turning to services like Clever Real Estate, which pre-negotiates lower listing fees with top agents from major brokerages.

Fill out this short quiz to be matched with a top-rated local agent who offers full service for just 1.5%—no negotiating required.

What is a 6% real estate commission?

In the traditional 6% real estate commission model, the seller pays 6% of the home sale price to cover the agents’ fees. This 6% is typically split evenly between the agents, 3% for the listing agent and 3% for the buyer’s agent.

For example, a 6% commission for a $500,000 home would be $30,000, with each agent receiving $15,000 (assuming they both earn 3%).

Many agents now offer more flexible pricing thanks to the rise of discount brokerages and increased competition. National data shows average commission rates are trending lower, often closer to 5–5.5%.

Even a small reduction can lead to significant savings vs. the traditional 6% rate:

• At 5.5%, you'd pay $27,500 — saving $2,500
• At 5%, you'd pay $25,000 — saving $5,000

Those savings go straight back into your pocket at closing — especially important when you're also paying for moving costs, repairs, or your next home purchase.

Why it's so hard to negotiate rates

Most sellers struggle to negotiate lower commission rates — not because it's impossible, but because the process is uncomfortable and often unclear.

Also, many homeowners don’t know what a fair rate looks like, and they worry that pushing for a discount could lead to reduced effort or lower-quality service.

Great marketing, follow-up, and negotiation don’t come cheap, says Shane Parker of S&P Realty. “In many cases, the net proceeds are actually better with a full-service agent, even if the fee is slightly higher. It’s not just about what you pay — it’s what you get, and how much you walk away with when it’s all said and done."

Market conditions also play a major role in an agent’s willingness to negotiate. Parker says, “In a fast-moving seller’s market, I’m more open to adjusting commission, especially for repeat clients or clean, market-ready listings. But in slower markets, where listings require more time, effort, and creative marketing, we typically hold firm on our rates.”

Because of these challenges, more sellers are turning to services like Clever Real Estate, which eliminate the back-and-forth by pre-negotiating a lower listing fee with top-rated local agents.

How to pay less than 6% right now

Sellers have several options to pay less than 6% total commission.

Work with a low commission agent

Working with an experienced, low-commission realtor can be the easiest and most reliable way to save on fees while still getting high-quality service. The best low-commission realtors and discount brokerages offer discounted listing fees while still providing full services and one-on-one support from a top local agent.

You can find a quality low-commission agent through free matching services, like Clever Real Estate and Ideal Agent. These services provide multiple local agent options, so you can interview and select the agent who best suits you.

Additionally, the companies will have pre-negotiated a lower commission rate for you. For instance, Clever has pre-negotiated a low 1.5% listing fee with agents, while Ideal Agent has pre-negotiated a 2% rate.

This means that on a home sale of $400,000, you’d only pay the listing agent $6,000 with Clever’s 1.5% pre-negotiated rate versus paying $12,000 to a listing agent charging 3% (half of the 6% commission rate).

Discount brokerages like Redfin can also offer built-in savings by offering full services at a lower rate. However, some brokerages like Redfin use a team-based approach. So, you work with multiple people throughout the real estate transaction instead of having one agent, which might not fit your style.

Negotiate realtor fees

You can always try to negotiate a lower realtor commission directly with agents instead of using a matching service. But this is really hard to do. Success rates are generally pretty low—according to industry statistics, only 22% of home sellers discuss commissions and successfully negotiate a lower rate with their agents.[1]

When negotiating realtor commission, you can increase your chance of success by clearly highlighting the strengths of your property. For example, you could showcase that your home is in excellent condition or in a great location. Also, be prepared to shop around for agents who will provide the services you need for less.

However, remember that many brokerages have set minimums, so they may be less willing to negotiate. You may also have trouble negotiating rates down if you’re selling a less expensive home.

Sell without a realtor

Selling your home yourself can help avoid paying a listing agent’s commission (although you'll still likely need to pay the buyer's agent).

While saving on commission fees is one reason people sell FSBO, this approach also gives you complete control over the whole real estate transaction process. For experienced sellers, this can be a bonus.

However, less experienced sellers may find selling FSBO more time-consuming than anticipated. Additionally, many FSBO sellers underestimate how much they have to juggle and how difficult the legal paperwork and contract negotiations can be. That's likely why just 6% of all sellers go the FSBO route.
[1]

Also, while selling your home without an agent can save on fees, industry statistics show that homes sold by owners typically fetch significantly less than those sold with an agent—$310,000 compared to $405,000 for agent-assisted sales. For many sellers, this means they miss out on higher proceeds, even after accounting for agent fees.

How 6% commission rates actually work

The seller determines the total commission before the listing agreement is signed, such as a 6% total commission. At this point, the seller also sets how much commission will be paid to the seller’s agent and the buyer’s agent. The seller pays the commission out of the sale proceeds at the closing.

However, under the National Association of Realtors (NAR) settlement, which took effect on August 17, 2024, sellers are no longer required to offer compensation to the buyer’s agent through the MLS. Buyers are now generally responsible for negotiating and paying their own agent’s fee.

That said, buyers can still request that the seller cover some or all of their agent’s commission as part of the purchase agreement, similar to asking for a seller-paid closing cost credit. Whether the seller agrees will depend on the specifics of the deal and local market conditions.

In most markets, sellers still offer to cover the buyer's agent fee to remain competitive.

"Homes that don’t offer buyer agent compensation may sit longer or attract lower offers — particularly in markets where compensation is still commonly seller-paid," says Parker.

Why do realtors get paid 6%?

Sellers have always been able to negotiate commission rates. But a 6% commission rate became standard to ensure both the seller’s agent and buyer’s agent were compensated, since the commission is split.

A 6% commission can benefit sellers by ensuring they get the best deal for their home. For instance, paying 6% can help sellers secure the services of an experienced local agent who:

• Understands the local market conditions
• Assists with preparing the home for sale so it can get top dollar
• Provides high-quality marketing strategies to generate interest in the property, possibly helping you sell fast and for more money
• May provide more extensive services, like home staging or 3D photography, as part of the service instead of something you have to add on

But while 6% has been the industry standard, many sellers now pay less. The average commissions have recently hovered around 5.5%. Because the NAR settlement has encouraged more competition, experts say the average commission rate may drop further.

Pros and cons of 6% realtors

Pros

✅ Full service and support from experienced agents.

✅ Potential for higher sale prices.

✅ Comprehensive marketing and negotiation services.

Cons

❌ Higher overall cost compared to low commission brokers.

❌ Potential for less flexibility in negotiations.

❌ Paying for services you may not need.

6% commission realtors: The bottom line

You don’t have to pay a 6% commission to sell your home. Thanks to increased competition and the NAR settlement, more sellers find full-service agents who charge less—often 1.5–2% to list.

While you can try to sell without a realtor or negotiate fees yourself, using a service like Clever Real Estate is the simplest way to lock in a low rate with a top agent. Just make sure you compare your options to get the best balance of savings and service.