How to Avoid the Typical Realtor Fees When Selling

» JUMP TO: How realtor fees work | Finding a lower commission | Selling FSBO | Negotiating

Realtor fees can significantly impact how much you ultimately earn from a home sale. For example, on a $500,000 home, a typical 5-6% commission can amount to $25,000–$30,000.

Fortunately, there are plenty of ways to reduce these costs, or even avoid them altogether — especially if you're willing to do some of the legwork yourself. It's a matter of finding which option has the right combination of benefits and tradeoffs for you.

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How realtor fees work

What are realtor fees?

Realtor fees are the commissions paid to real estate agents involved in a home sale. These fees are typically a percentage of the final sale price, commonly ranging between 5-6% nationwide. This total is usually split between the listing agent and the buyer’s agent.

For example, selling a $500,000 home usually means paying about $30,000 in fees — with $15,000 going to each agent’s brokerage.

Realtor fees have traditionally been paid from the seller’s proceeds at closing. A seller would agree to pay a certain amount in total commission, and their listing agent would advertise the buyer's agent's cut in the MLS listing. 

However, recent legal developments, such as the 2024 NAR settlement, have resulted in significant changes to how real estate commission works. Key changes include:

• Sellers are no longer required to offer buyer’s agent compensation. They can still choose to do so, and many continue to cover the cost. 
• Buyer’s agent commissions are no longer displayed on MLSs. Compensation must now be discussed directly between agents and their clients, and negotiated during the offer process.
• Buyers must sign a written agreement with their agent before touring homes. These contracts clarify what services the buyer’s agent will provide and how they’ll be paid, including if the seller refuses to offer any compensation.

While realtor fees technically have always been negotiable, the settlement offers greater transparency to both buyers and sellers and makes realtor fee negotiations a standard practice, rather than an optional conversation.

Why reducing fees matters

Reducing even a small percentage of realtor fees can result in substantial savings. For example:

• On a $500,000 home, saving 1% on commission puts $5,000 back in your pocket.
• On a $1,000,000 home, the savings double to $10,000.

Even a small reduction in the standard commission rate can put thousands of dollars back in individuals' and families' pockets.

3 ways to avoid traditional realtor fees in 2025

1. Work with a realtor offering lower rates upfront

The easiest way to avoid the typical realtor fees is to work with a brokerage that offers commission savings upfront.

While listing agents typically charge a commission rate of 2.5–3%, plenty of real estate brokers offer the same service and support for as little as 1–1.5%.

Here's what you could save on listing agent fees by selling with a low commission brokerage:

Some companies, like Redfin, offer discounted commission rates directly through their brokerage — meaning you need to work with one of their agents to secure the savings.

Other options, like Clever Real Estate and Ideal Agent, offer pre-negotiate rates with agents from various brokerages throughout the country, allowing you to choose from a number of local agents within their network and select the right fit.

Pros

✅ You stand to make more money. A survey of more than 650 recent home sellers found that those who used an agent earned an average of $79,000 more from their home sale than those who did not.[1].

✅ You get lower rates without sacrificing service. Top brands like Clever Real Estate, Ideal Agent, and Prevu are among the highest rated real estate companies on 3rd-party sites like BBB, Google, and Trustpilot.

✅ You'll have someone to handle the details. In addition to listing your home on the MLS, realtors are paid to handle the marketing, showings, paperwork, and negotiations — things that most home sellers probably aren't familiar with and don't have time for.

Cons

🚫 You'll still pay at least some commission. Unless you want to go it alone, you're not going to avoid realtor fees altogether. However, working with a commission-conscious brokerage can help you keep thousands more in your pocket. 

🚫 Buyers may ask you to cover their agent fees also. Even after the NAR settlement, many sellers continue to cover the buyer's agent fee. "Most buyers barely have enough for their down payment and closing costs, and can't afford to pay their buyer agent," explains realtor Tracy Trammel. Therefore, it's not uncommon for buyers to request a closing cost concession to cover their agent fee when they submit their offer. Agreeing to this request may go a long way towards securing your home sale; however, you are free to set a limit on how much you'll pay.

🚫 Not all discount brokers offer full service. Some low commission options offer "savings" by handing off a lot of the work (like showings and contract negotiations) to the home seller. When shopping for a realtor, be sure to ask exactly what's covered by their fee.

Top companies offering built-in savings on realtor fees

Company	Listing fee	Avg. savings	Avg. customer rating*
Clever	1.5% (min. $3,000)	$7,000	5.0/5 (4,037 reviews)	Find agents
Redfin	1.5–2% (min. varies)	$5,500	2.7/5 (456 reviews)	View details
Ideal Agent	2% (min $3,000)	$4,500	5.0/5 (6,975 reviews)	View details
Prevu	2%	Varies	5.0/5 (646 reviews)	View details
UpNest	Varies	Varies	4.7/5 (8,325 reviews)	View details

2. Sell without a realtor, or FSBO

What is FSBO?

For Sale By Owner (FSBO) means selling your home without the help of a listing agent, which can eliminate the seller’s agent’s commission (typically 2.5-3%). However, FSBO sellers usually still pay the buyer’s agent commission, especially if they want their home to sell quickly.

Selling FSBO requires handling all aspects of the sale, including:

• Pricing and marketing your home.
• Negotiating with buyers and their agents.
• Managing paperwork and legal compliance.

While FSBO can save you money upfront, FSBO homes often sell for less than agent-represented properties. The time and effort required can also be daunting for inexperienced sellers.

FSBO is best for experienced sellers comfortable with the process and willing to put in extra effort. For those looking for more support, working with a discount broker might be a better alternative.

Pros

✅ Avoid paying a listing agent altogether. Selling without a realtor saves you the 2.5–3% that would normally be applied to a listing agent's commission. This can translate to significant savings, especially on higher-priced homes.

✅ More control over the selling process. You can set the listing price, negotiate terms such as repairs and move out dates, and manage how your home is shown. 

✅ Cut out the middle man if you already have a buyer. Selling without a realtor is more likely to be fruitful if you have a buyer lined up (38% of FSBO sellers already know their buyers).[2]

✅ Sell fast if you want to. If you need to sell quickly, you can usually sell to a cash home buyer within a few days.

Cons

🚫 You risk a lower sale price. Homes sold without a realtor go for about 13% less (or $65,550 on a $500,000 house) than those listed with an agent.[2] That's compared to the ~1.5% (or $7,500) sellers would spend on listing agent fees with a low commission brokerage. Homes sold directly to investors are typically resold for 55% than the original purchase price.[3]

🚫 You may still be asked to cover the buyer's agent commission. If you don't pay a concession, buyers may steer clear of your home, since most can't afford to cover their realtors' commission on top of their down payment and closing costs.

🚫 You may face skepticism from buyers. About 53% of buyers said they were less likely to trust sellers without a realtor, which could create barriers during negotiations and other parts of the sale process.[1]

🚫 A lot of sellers aren't prepared for the work involved. Selling a home solo requires a significant time investment to research pricing, market the home, facilitate showings, review offers, handle negotiations, and complete the paperwork. About 80% of sellers who sold without an agent reported regrets about their sale, including legal mishaps and mishandled pricing.[1]

Options for selling FSBO

• Flat fee MLS services can help you get your home listed on the local MLS for as little as $100. Many of these companies also offer additional service tiers that include add-ons like paperwork packages, an online portal for managing showing requests, and guidance through negotiations.
• Free for sale by owner websites. Options like ForSaleByOwner.com and Craigslist allow sellers without a realtor to list their homes at no cost. Listings on these sites don't appear on the MLS, which limits the reach of your listing.
• Social media. Facebook Marketplace also allows for free home listings. But again, your listing won't appear on the MLS, and you're likely to get a lot more spam than legitimate buyers.
• Physical media. Yard signs are used in more than 60% of home sales.[4] However, not all states allow you to use a yard sign to market your home if it's listed on the MLS. See the guide to selling without a realtor in your state for details.

3. Negotiate realtor fees

While realtor fees are standard, they're not fixed—you can negotiate them. Many agents are open to adjusting their commission to secure your listing, especially in certain situations.

If you're comfortable having the conversation, negotiating realtor fees can be an effective way to align your agent's compensation with your goals as a home seller. For example, you could negotiate a sliding scale based on the sale price and speed of getting an offer.

However, only about half of home sellers even attempt to negotiate commission rates.[5]. Additionally, 12% of recent sellers tried to negotiate, but failed to get their realtor to budge on price. 

This strategy typically works best for sellers who have some experience with sales and are familiar with what motivates agents.

Pros

✅ More freedom to set your own rate. When you negotiate with your realtor directly, you have the flexibility to come up with your own compensation scale. For example, you can tie the compensation directly to the services provided or the outcomes achieved.

✅ You can learn about the realtor in the process. Most realtors know their value, and if they're good at negotiating, they should be able to convince you why they're worth their rate. If a realtor is all too willing to sacrifice their compensation in order to buy your listing, that could be a sign that they're not too confident in their abilities to add value.

Cons

🚫 Negotiations aren't always successful. Recent data from Redfin indicates that while 25% of recent home sellers were able to negotiate commissions with their realtor, about 12% tried to negotiate but were unsuccessful.[6]

🚫 Not all realtors have the flexibility to set their own rates. Even if a realtor wants to offer you a commission discount, they may not have the autonomy to do so. Some brokerages have minimum or standard commission rates. And newer agents may be subject to higher brokerage fees that would make offering a discount unrealistic for their own bottom line.

Factors that can help you negotiate a lower commission rate

• Offer to work with the same agent for buying and selling (a "double deal").
• Make your property easier to sell through staging, curb appeal, and competitive pricing.
• Propose a tiered commission structure, which involves a baseline commission, plus bonus compensation for achieving certain results, such as a desired sale price or favorable terms (shorter closing window, all cash offer, etc.)
• Ask about a la carte services. Full-service agents typically offer professional photography, staging, videography, MLS listing and syndication, open houses, digital marketing, negotiations, and transaction coordination. However, if you don't need the full package, you could see if your agent is willing to adjust their rate based on just the service provided. 

The bottom line

Realtor fees are a considerable expense when selling a home, but they don't have to take such a big bite out of your proceeds.

Following the 2024 NAR settlement, commissions are more negotiable than ever between agents and their clients.

Additionally, you can find a growing number of agents offering to list homes for lower-than-standard commission rates through companies like Clever Real Estate, Redfin, and more.

• If you're confident going it alone: Hire a flat fee MLS company to sell your house FSBO (just be aware that the savings may get eaten up by less competition and a lower sale price).
• If service quality or convenience matters: Negotiate the commission rate directly with your agent or find a full-service agent offering pre-negotiated savings.