Most home sellers still pay a 3% listing commission to their agent, even though fees are negotiable and not fixed. On a $442,000 home, that 3% adds up to about $13,260 — before factoring in the buyer’s agent fee, which can push total commission costs to nearly $27,000.
But sellers don’t have to pay that much. Alternative options, including Clever Real Estate, pre-negotiate lower listing fees (1.5%) with top-rated agents from brokerages like Keller Williams and RE/MAX.
Example: On a $500,000 home sale, Clever’s 1.5% listing fee saves you about $7,500 compared to paying the traditional 3%. Take this short quiz to compare your options and get matched with top-rated agents, or continue reading for more options.
Best 3% commission realtor alternatives
Clever Real Estate, Redfin, and Ideal Agent are low-commission realtors that offer alternatives to the traditional 3% listing commission. However, they differ in how they deliver savings and service.
Top pick: Clever Real Estate
What Clever offers: Lower commission without cutting service. Take a short quiz, get matched with vetted local agents, and choose the best fit to sell your home.
What customers say: Reviews are overwhelmingly positive with praise for service quality and experienced agents. A small minority report poor service or rude agents.
Best for: Sellers who want a lower listing fee without giving up full service.
✅ Editor’s take: Clever is the best pick for most sellers. Pay a simple 1.5% listing fee and still get full service from conventional realtors at name-brand brokerages like Keller Williams and RE/MAX.
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.
Runner-up picks worth considering
🥈 Redfin
Redfin also offers a 1.5% listing fee, half the usual 3% rate. Still, 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
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
But if you use a low commission realtor that charges 1.5% on the list side, you could end up paying a 4.5% total commission rate and save anywhere from $6,000 to $15,000 or more, depending on your sale price.
| Home price | 6% commission | 4.5% commission | Savings |
|---|---|---|---|
| $400,000 | $24,000 | $18,000 | $6,000 |
| $600,000 | $36,000 | $27,000 | $9,000 |
| $1,000,000 | $60,000 | $45,000 | $15,000 |
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.
⚖️ Realtor commission changes at a glance
These changes stem from the NAR lawsuit settlement, which reshaped how real estate commissions work nationwide and took effect on August 17, 2024.
- No more MLS commission ads: Listing agents can’t advertise buyer’s agent fees. Buyers now negotiate directly with their agents on pay.
- Seller concessions replace commission offers: Many MLSs added a “seller concessions” field. If the negotiated agent fee is less than the concession, the buyer keeps the difference — creating potential savings.
- Buyer’s agency agreements are required: Agents must sign a written agreement before working with clients, outlining services and fees for more transparency.
- Settlement payouts: NAR agreed to pay $418 million to past home sellers over four years. Eligible sellers may receive a portion.
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.[1]
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.
