Average Real Estate Commission: 2025 Edition

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By Jon Stubbs Updated May 22, 2025

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The average real estate commission nationwide is 5.44% nationwide typically ranges from 5% to 6% of a home’s sale price. This rate includes an average of 2.77% for the selling agent plus 2.67% for the buyer's agent.[1]

Here's what 5.44% works out to for three different price points:

  • $14,688 home: $14,688
  • $29,376 home: $29,376
  • $48,960 home: $48,960

Realtor fees are one of the biggest expenses when selling a home. Fortunately, there are ways to spend less on realtor commission and increase your profit. 

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Real estate commission calculator

Our helpful real estate commission calculator can help you estimate your home selling expenses and learn how to save. Choose your state to customize the calculator with your local average commission.

Recent industry developments and commission rate changes, including the National Association of Realtors (NAR) settlement, have contributed to downward pressure on commission rates. These changes have provided sellers with greater flexibility in negotiating realtor fees.

While rates have been trending down slightly since the settlement, especially for buyer’s agents, the total average commission rate for selling remains between 5% and 6%.[2]

Commission rates have been gradually decreasing due to:

  • Increased competition among agents.
  • Emerging discount brokerage models.
  • The impact of regulatory changes, such as the NAR settlement.

Some agents are willing to list a house for significantly less than 2.45% commission while still providing full service. Clever Real Estate pre-negotiates a 1.5% listing fee with top-rated local agents for you. Try Clever today to find low-commission agents in your area!

What does real estate commission cover?

Real estate commission compensates agents for their comprehensive services, including:

  • Marketing the property: Agents often advertise homes for sale using professional photography, MLS listings, and digital media.
  • Negotiating offers and managing counteroffers: Agents are expert negotiators and work as advocates for their clients.
  • Coordinating inspections and appraisals: Most home sales involve both an inspection and an appraisal. An agent can help find these specialists and arrange time for them to see the home.
  • Navigating the closing process: A big part of an agent’s job involves ensuring that all of the i’s are dotted and t’s are crossed to proceed with the transaction.

Commission rates are negotiable

Contrary to popular belief, commission rates are not fixed. Sellers can and should negotiate realtor fees to maximize savings.

Before listing your home, research average commission rates in your area and discuss fees and services with potential agents. Comparing agents and negotiating can help you save thousands of dollars.

Another option is to consider working with a company that pre-negotiates a lower rate on your behalf. Our agent matching service partners with top local agents who offer a 1.5% listing fee. 

You'll get the same comprehensive service while saving 50% on listing fees. On a $400,000 home, this can mean savings of up to $5,000! Get matched with a 1.5% listing agent today!

What is the average real estate commission in the U.S.?

Recent in-house data analysis indicates the national average real estate commission rate is 5.44%. Here’s how this typically breaks down:

Average rateCommission for a $270,000 homeCommission for a $540,000 homeCommission for a $900,000 home
Listing agent commission2.77%$7,479$14,958$24,930
Buyer’s agent commission2.67%$7,209$14,418$24,030
Total realtor fees5.44%$14,688$29,376$48,960
Show more
Example home values shown are 75%, 150%, and 250% of the current national median home value, which is $361,263.[3] 

Factors influencing real estate commission rates

Commission rates fluctuate depending on a number of variables, including:

  1. Location: Regional norms significantly affect commission percentages. For example, high-demand markets often have lower rates.
  2. Market conditions: In a seller’s market, agents may accept lower fees due to an anticipated quick sale.
  3. Home value: High-value homes often result in lower percentage-based rates.
  4. Agent services: Full-service agents with extensive marketing and support may charge higher fees.

Regional and state variations in commission rates

Commission rates vary significantly by state and region. Markets with high competition among agents or higher home prices tend to have lower rates. Rural or less competitive markets often see higher percentages due to fewer agents.

Find your state in the table below to see average commission rates in your area.

StateTotal commission[1]Comparison to national average
Alabama5.68%higher than national average
Alaska 5.22%less than national average
Arizona5.44%about equal to national average
Arkansas 5.41%less than national average
California5.18%less than national average
Colorado5.74%higher than national average
Connecticut5.45%about equal to national average
Delaware 5.41%less than national average
Florida5.36%less than national average
Georgia5.65%higher than national average
Hawaii 5.22%less than national average
Idaho5.67%higher than national average
Illinois5.18%less than national average
Indiana5.35%less than national average
Iowa 5.62%higher than national average
Kansas5.62%higher than national average
Kentucky5.41%less than national average
Louisiana5.43%about equal to national average
Maine 5.29%less than national average
Maryland5.13%less than national average
Massachusetts5.53%higher than national average
Michigan6.03%higher than national average
Minnesota5.75%higher than national average
Mississippi 5.41%less than national average
Missouri5.77%higher than national average
Montana 5.67%higher than national average
Nebraska 5.62%higher than national average
Nevada5.67%higher than national average
New Hampshire5.29%less than national average
New Jersey4.92%less than national average
New Mexico5.60%higher than national average
New York5.36%less than national average
North Carolina5.46%about equal to national average
North Dakota 5.62%higher than national average
Ohio5.87%higher than national average
Oklahoma5.60%higher than national average
Oregon5.22%less than national average
Pennsylvania5.37%less than national average
Rhode Island 5.29%less than national average
South Carolina5.34%less than national average
South Dakota 5.62%higher than national average
Tennessee5.42%about equal to national average
Texas5.64%higher than national average
Utah5.67%higher than national average
Vermont 5.29%less than national average
Virginia5.35%less than national average
Washington5.33%less than national average
Washington, D.C.5.45%about equal to national average
West Virginia 5.41%less than national average
Wisconsin5.71%higher than national average
Wyoming5.67%higher than national average
National average5.44%
Show more

Why are real estate commissions so high?

Real estate agents provide significant value in selling homes:

  • Marketing costs: Professional photography, staging, and MLS fees add up.
  • Negotiation skills: Experienced agents can secure better offers.
  • Brokerage splits: Agents often share their commission with their brokerage, reducing their take-home pay.

How to save on real estate commission

  1. Negotiate realtor fees: Many agents are open to reducing their rates, especially in competitive markets.
  2. Use a low-commission brokerage: Companies like Clever and Redfin offer lower fees while maintaining full-service support.
  3. Sell FSBO (for sale by owner): Skipping agents entirely can eliminate commission costs but requires more effort and expertise.

Trends impacting real estate commissions

  • Regulatory changes: The NAR settlement has introduced greater flexibility in commission negotiations.
  • Discount brokerage models: Companies like Redfin and Clever are reshaping the commission landscape.
  • Future predictions: Experts anticipate further declines in commission rates as technology and competition evolve.

Who pays real estate commission?

In most cases, the seller covers the full commission, which is split between the listing and buyer’s agents.

Even though the seller often chooses to pay for the buyer's agent in an agreement known as a buyer's agent concession, they're not required to. Each party, the buyer and the seller, sign a contract with their respective agent promising to pay their fee at closing. 

This means the buyer is technically on the hook for their own agent. However, listing agents recommend the seller pay for both agents to make the home affordable to a larger pool of buyers.

The bottom line

Real estate commission rates are not one-size-fits-all. By understanding average rates, negotiating fees, and exploring alternative models, sellers can save thousands without sacrificing quality service.

Ready to save? Find a top-rated agent offering a 1.5% listing fee today.

Related articles

Article Sources

[1] Clever Real Estate – "Survey of 806 agents nationwide".
[2] Real Estate News – "Buyer agent commissions already falling, new report finds". Updated 08/02/2024.
[3] Zillow – "Housing Data".

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