Commission Rates on Land Sales in Real Estate

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Commission rates on land sales typically range from 5–10% of the sale price.[1] That’s much higher than the average of 5-6% for home sales nationwide.

For example, if you sell a $100,000 parcel of land, you could pay as much as $10,000 in realtor commissions, or nearly double what you’d typically pay to sell a home of the same price. On a $300,000 property, that figure jumps to $30,000.

Much of that higher price is that land typically sells for less than a home, so real estate agents must charge a higher percentage to keep their compensation fair. Selling certain types of land can also take longer and generally be more complicated, further driving up commission rates.

In this article, we’ll break down commission rates for land sales and explore what factors affect them.

Commission rates on land sales: Summary

If you’re worried about paying 8–10% just to sell your land, there are ways to save.

You can start by negotiating realtor fees with your agent. Many commission rates are flexible, especially if your land is high-value, in a hot market, or likely to sell quickly.

You can also use services like Clever Real Estate. This option connects you with top-rated local agents who offer full service for pre-negotiated lower rates — meaning you keep more of your profits. Take this short quiz to get started today!

Who pays commission on land sales?

Most real estate transactions, including land sales, involve two agents: one for the seller and one for the buyer.

Traditionally, the seller pays the commissions for both agents, and this arrangement has also applied to most land sales. This may change soon (and we’ll discuss that in a minute), but for now, sellers should expect to cover the full commission amount.

The average rate of land sales is around 5–10%, compared to the national average of 5-6% for home sales. The variance can come from several factors, including the price of the land, the type of land (farmland or commercial land might be a harder sell than residential land, for example), and access to infrastructure.

Important: NAR settlement changes

In 2024, the National Association of Realtors (NAR) settled to address claims made on behalf of home sellers regarding broker commissions.[2] Since this settlement, listing agents can no longer share buyer’s agent fees—including on land sales. One of the biggest shifts is that listing agents can no longer advertise or offer compensation to buyer’s agents through the MLS. This change applies to all property types, including land sales.

What this means in practice:

• Buyers (and their agents) now negotiate fees directly before viewing properties.
• Sellers are no longer required to set or guarantee the buyer’s agent commission upfront.
• In many cases, sellers may still agree to cover some or all of the buyer’s agent fee, but it’s no longer baked into the listing by default.

The new rules give buyers and sellers more flexibility to negotiate. But that makes it even more important to discuss commission upfront and compare agents carefully. Since these fees can take a big bite out of your profits, transparency is the best way to protect your bottom line.

Real estate commission on land sales: A breakdown

Sellers and their agents usually decide the listing fee before putting land on the market. Since the NAR settlement in 2024, however, buyers and their agents now negotiate their own fees directly before viewing properties.

Even with this change, sellers are often still expected to cover some or all of the buyer’s agent fee, which is then split between both agents and their brokerages.

Regarding land sales, commissions tend to run higher than on homes. Land is often priced lower, harder to market, and slower to sell — agents typically ask for a bigger percentage to make the work worthwhile.

Several key factors drive how much commission you’ll pay on a land sale:

Real estate commission example

Let’s say you sell a piece of land for $100,000 with an 8% commission, totaling $8,000. If the commission is split evenly between the seller’s and buyer’s agents, each agent would receive $4,000. After their brokerages take a 30% cut, each agent ends up with $2,800.

Considering how long land can stay on the market, $8,000 in commission may seem low. To address this, some agents and brokers opt for flat fees on land sales rather than a percentage. For instance, they might charge a flat $10,000, regardless of the land’s selling price.

The bottom line

Typical commission on land sales is 5–10% of the land’s selling price, which can be much more than the average commission on home sales. These higher commission rates are intended to offset the lower selling prices and smaller markets for most pieces of land.

Several factors influence the commission rate on land, including the listing price, the type of land, access to infrastructure, and legal complications. Generally, lots that are lower price, more niche, and require more work from the realtor will have a higher commission rate.

While land sales almost always carry higher commission rates than homes, you don't have to overpay. By understanding the factors that drive commission and comparing agent options, you can negotiate a better deal and keep more of your sale proceeds.