3 Best Ways to Save on Realtor Fees in 2025

Written by Amber TaufenJanuary 8th, 20253 minute read

» JUMP TO: How Realtor Fees Work | Discount Brokers | Selling FSBO | Negotiating | Alternatives | FAQ

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 ways to reduce these costs while still achieving your selling goals. This guide highlights three primary strategies to save on realtor fees in 2025: working with low-commission real estate agents or discount brokers, negotiating commissions with traditional agents, and selling your home without a realtor (FSBO).

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 at a 5% commission rate means $25,000 in fees — split into $12,500 for each agent’s brokerage.

Factors impacting fees

Realtor fees are paid from the seller’s proceeds at closing. While these fees are standard, they are not fixed—you can negotiate them.

Recent legal developments and changes to real estate commission, such as the NAR settlement, have increased flexibility in commission structures, making negotiating realtor fees more common.

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.

3 best ways to save on realtor fees in 2025

1. Use a discount broker

Discount real estate brokerages, such as Clever, Redfin, and Houwzer, offer reduced commission rates compared to traditional agents. For example, Clever negotiates a 1.5% listing fee, compared to the standard 2.5-3%.

On a $500,000 home:

  • Traditional commission: $15,000 for the listing agent.
  • Discount broker commission: $7,500 for the listing agent.
  • Total savings: $7,500.

Pros and cons

Discount brokers offer these advantages:

  • Full-service options at lower costs.
  • Technology-driven efficiencies streamline the selling process.

Some potential drawbacks of working with discount brokers could include:

  • Some discount brokers may offer less personalized service.
  • Team-based approaches can vary in quality.

Best for

Discount brokers are best for sellers seeking significant savings while retaining professional support. Try Clever today to get matched with top-rated agents offering a 1.5% listing fee.

2. Selling 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.

Key responsibilities for FSBO sellers

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.

Using a flat-fee MLS listing service

Flat-fee MLS services allow FSBO sellers to list their property on the Multiple Listing Service (MLS), which is crucial for visibility. These services typically cost $100–$500, significantly less than traditional commissions.

Drawbacks of FSBO

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

Best for

FSBO is ideal 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.

3. Negotiate realtor fees

Negotiating realtor fees can be one of the most effective ways to save money on your home sale. Many agents are open to adjusting their commission to secure your listing, especially in competitive markets.

Tips for successful negotiation

  • Ask upfront if the agent is willing to negotiate.
  • Offer to work with the same agent for buying and selling (a "double deal").
  • Make your property easier to sell by staging or accommodating showings.

When negotiation might not work

  • Some brokerages have fixed commission structures.
  • In low-inventory markets, agents may have more leverage to stick to standard rates.

Best for

Negotiating works best for sellers comfortable discussing terms and seeking to reduce costs without sacrificing full-service representation.

The bottom line

Reducing realtor fees doesn't have to mean compromising on service. Explore your options and prioritize what matters most:

  • If saving is your goal: Work with a discount broker or negotiate directly.
  • If service quality or convenience matters: Seek full-service agents offering pre-negotiated rates.

Find top-rated agents who've agreed to represent you for just 1.5% commission — no negotiating needed. Try Clever today!