Can You Save on Realtor Fees When Selling a $1 Million House?
If you’re selling a $1 million house, you can save on realtor fees by negotiating commission rates directly or opting for a low-commission realtor. Sellers of high-value properties often have greater leverage to negotiate lower rates due to the substantial commissions involved.
To put this into perspective, traditional realtor commissions of 5–6% on a $1 million home amount to $50,000–60,000. For even higher-value homes, like a $10 million property, the standard commission can soar to $500,000–600,000.
Understanding your options for saving on these fees can translate into thousands of dollars in savings.
Looking to save some money on your million-dollar home sale? Clever pre-negotiates a low, 1.5% listing fee on behalf of sellers. That's about half of what you'd pay if you found a conventional agent on your own. Find an agent through Clever today!
Agent commission for a $1 million house sale
The average real estate agent commission rate in the U.S. is between 5-6%. A 2024 Clever Real Estate analysis of transactions across the country found that the average commission rate on a sale was 5.32%, with fees typically divided between the listing agent and the buyer’s agent.
In 2024, the same analysis found the average listing agent commission was 2.74%, though rates can range from 1% on the low end to 4% on the high end, depending on location.
Here’s how a 5.32% commission would break down for high-end homes.
Home value | Listing agent commission | Buyer’s agent commission | Total commission |
|---|---|---|---|
$1,000,000 | $27,400 | $25,800 | $53,200 |
$10,000,000 | $274,00 | $258,000 | $532,000 |
Factors influencing commission rates
Several factors can affect commission rates.
Market conditions
Competitive or slow markets can influence negotiation flexibility. In more competitive markets, commission rates might be more negotiable. Agents might be less willing to budge on their commission rate in markets where homes take longer to sell.
Location
The 2024 commission analysis found that rates were highest in the Midwest (2.94% average listing commission rate) and lowest in the Rocky Mountains (2.34% average listing commission rate).
Property value
Higher-value homes may provide opportunities for reduced rates. These homes tend to take longer to sell than entry-level housing. If you are seeking a reduced rate, it’s important to work with an agent who offers the same level of service so you can capture the most value from your home and also sell it as quickly as possible.
Ways to save on commission fees on a $1 million house
To save money on commission fees, you can negotiate directly with agents or use a discount brokerage. As the seller, you will also have the opportunity to discuss terms of the buyer’s agent commission with buyers who make an offer on your home.
Negotiating lower rates
If you already know which agent you want to list your home, or if you’re currently trying to decide between a handful of agents, then your best chance to save some money on realtor commission is to negotiate your rate directly with them.
Sellers of high-value homes often have leverage to negotiate lower fees. Factors that influence negotiating power include:
- Current market trends: If you live in an area with higher price points and where homes sell relatively quickly, agents may be more willing to negotiate their commission with you.
- The time of year: Listing a $1 million home is a lot like listing any other house in that there are peak seasons and off seasons. You might be able to use the timing of your home sale as leverage in negotiating agent commission.
- The appeal and condition of the property: Sellers will have more negotiating power if their home is in a popular neighborhood, has desirable features, or will require little to no work before the buyer can move in.
Using discount brokerages
A discount brokerage charges lower-than-traditional fees for comparable levels of service. Platforms like Clever Real Estate can help you find quality discount brokers in your area: Clever pre-negotiates a 1.5% listing fee with top real estate agents, offering potential savings while ensuring full-service representation.
Potential savings
Home value | Traditional fee (5.32%) | Discount fee (1.5%) | Savings |
|---|---|---|---|
$1 million | $53,200 | $15,000 | $38,200 |
$10 million | $532,000 | $150,000 | $382,000 |
Recent changes in commission practices
Following the 2024 National Association of Realtors (NAR) lawsuit, new real estate commission changes have introduced more flexibility in compensation structures.
Instead of including the buyer’s agent commission rate on the MLS, sellers now negotiate those commission payments directly with buyers as part of the transaction process.
This means that sellers of $1 million+ homes can potentially negotiate lower buyer’s agent fees, resulting in additional savings.
How agents justify their commission
What’s the value of hiring a real estate agent and parting with a portion of your home sale proceeds? There are several benefits of working with an agent, especially when trying to sell a high-end home.
Challenges of selling million-dollar homes
Limited buyer pool
High-value homes are part of a niche market, which means:
- Fewer qualified buyers: Many buyers can’t afford a $1 million home, and luxury listing agents know how to find the buyers who can.
- Extended timeframes to secure a sale: Due to lower demand for these homes, they often sit on the market for significantly longer than entry-level or mid-level homes. In many markets, it’s not unusual for a $1 million home to sit on the market for several months or even up to a year.
Specialized expertise required
Selling luxury homes demands advanced skills, including:
- Expertise in luxury marketing: Agents should be experienced with high-end visuals, exclusive advertising outlets, and more.
- Strong negotiation skills are needed to navigate complex deals. Higher price points can also mean more contingencies and other variables that could be negotiated.
Pricing the home correctly
Accurate pricing is crucial, especially when the home is first listed for sale. Agents use tools like Comparative Market Analyses (CMAs) and pre-listing appraisals to:
- Align pricing strategies with seller goals: If a quick sale is more important than capturing maximum profit, agents can consider that and help ensure the seller gets what they need most from the transaction.
- Capture the highest possible sales price: Agent-listed homes sell for more than FSBO homes, and an agent’s expertise in pricing them can generate a higher profit that helps offset their commission.
The bottom line
Selling a $1 million or higher home presents unique challenges for both the seller and their agent. By understanding realtor commission structures and exploring cost-saving options, you can reduce fees without compromising service quality. Partnering with an experienced agent ensures your property is marketed effectively and sold for maximum value.
Low-commission realtors are a good option for saving money while getting an agent’s expertise. They reduce your commission by charging less than the average listing fee of 2.74%, often as low as 1.5%.
For example, on a $1,000,000 home sale, paying a 1.5% commission instead of the typical 2.74% could save you nearly $14,000.
⚡ Looking for low commission real estate agents near you? Answer these five simple questions to get matched with local agents who work for a 1.5% listing fee. Compare realtors from top discount companies and major brands.