In a FSBO sale, there’s no listing agent involved, so the seller avoids listing fees. But they may still end up paying realtor fees to the buyer's agent.
Sellers aren’t required to pay the buyer’s agent commission, but many choose to via a concession at closing.
Buyers often expect this support, and refusing to offer it can turn potential buyers away. Fewer interested buyers could lead to a slower sale or lower offers — wiping out any savings from avoiding realtor commissions.
Want to sell for a higher price and save thousands in commissions? We recommend working with an experienced agent who charges a lower commission rate. You'll get expert help negotiating the sale price and buyer's agent fee, and chances are high you'll walk away with more money overall.
Who usually pays realtor fees?
In a typical home sale (not FSBO), sellers pay real estate commission costs for both the seller's agent and the buyer’s agent.
Realtor fees are usually factored in when setting a listing price, and they come out of the proceeds of the sale at closing — not upfront and out of pocket.
The typical real estate commission is 2.5–3% of the sale price for the seller's agent and 2.5–3% for the buyer's agent.
On a $400,000 home sale, the total commission cost would be $20,000–24,000.
As of August 2024, a legal settlement involving the National Association of Realtors (NAR) has changed how realtor fees are paid.[1] Now, instead of the listing agent advertising buyer agent fees, those fees are negotiated between the buyer and the buyer's agent.
However, sellers can offer a concession to cover the buyer’s agent commission in order to attract buyers. This concession is common and, in effect, it means most sellers are still paying the buyer’s realtor fees.
Will a FSBO seller pay buyer realtor fees?
There’s no guarantee a FSBO seller will pay the buyer’s realtor fees, although many buyers expect the seller to cover the buyer’s agent commission through a concession. But whether or not this happens is up to the seller and will be determined during offer negotiations.
Because of the NAR settlement, real estate listings can no longer advertise that the seller will pay the buyer’s agent commission and what the rate will be. Instead, that commission rate is negotiated between the buyer and their agent and put into a contract. If the seller doesn't cover any of the buyer's agent fee, then the buyer is obligated to pay it.
However, the FSBO seller can choose to offer a concession to cover all or part of the buyer’s realtor fees. Concessions can be offered during the negotiation process, and they can be a useful tool to help close a deal.
Here are a couple reasons why FSBO sellers may want to cover the buyer’s agent commission:
- Attract buyers. If buyers know that they ultimately won’t be responsible for their agent’s fees, they may be more likely to consider purchasing a property.
- Drive up the purchase price. Similarly, by increasing the number of buyers, FSBO sellers are more likely to increase their home’s selling price. Competition among buyers is one of the best ways of improving a home’s sale price.
- Stay competitive. Concessions covering realtor fees are common with properties that are represented by a listing agent. By including a realtor fee concession, FSBO sellers are able to stay competitive with homes that have a listing agent.
What if a FSBO seller refuses to pay the buyer's agent commission?
Some for-sale-by-owner sellers will refuse to pay any real estate agent fees.
Buyers have a handful of options:
- Pay your realtor’s commission out of pocket (2.5–3% of the purchase price).
- Work with the seller to build commission into the home’s sales price. The commission will get rolled into your mortgage, and the seller can use the home sale proceeds to pay your agent at closing.
- Walk away.
If a FSBO seller is reluctant to pay the buyer’s agent commission, negotiations are an opportunity to change their mind. Some FSBO sellers can get fixated on avoiding realtor fees, but they may be open to negotiating other fees or costs.
Buyers should have an experienced buyer’s agent who can negotiate other aspects of the sale — such as closing cost concessions or a lower sale price — that are equal to or even worth more than the buyer’s realtor fees. That way, the buyer still comes out ahead even if they pay the realtor fees.
If you don't have an agent already, Clever can help you connect with top buyer's agents in your area. And as a bonus, you can get some cash back to help with moving expenses or other costs.
Alternatives to selling FSBO
If you're a budget-conscious seller, you can still save on realtor fees with one of these FSBO alternatives.
Use a low-commission agent
The easiest way to save on realtor fees as a seller is to simply list with an agent who charges lower commissions. That way, you get all the benefits of an experienced agent without the usual cost.
Low-commission real estate companies make it easy to find affordable agents. These companies negotiate lower rates with real estate agents in exchange for bringing in more clients. Because these realtors don’t have to market themselves as much and can focus on selling houses, they’re willing to offer the same services for less.
These are some of the top low-commission companies:
| Company | Listing fee | Customer reviews |
|---|---|---|
| Clever Real Estate | 1.5% (min. $3,000) | 5/5 (3,000+ reviews) |
| Redfin | 1.5% (min. fee varies) | 2.7/5 (450+ reviews) |
| Ideal Agent | 2% (min. $3,000) | 4.9/5 (7,000+ reviews) |
Each company differs in its service model and how similar that model is to the traditional brokerage experience.
For example, with Redfin, you’ll get assigned a real estate agent, but you’ll work with a team of Redfin staff members for different stages of the transaction. As a result, you’ll get less one-on-one time with your Redfin agent than you’d typically get with a traditional real estate agent.
Other companies offer a traditional realtor experience, just at a lower cost. For example, Clever Real Estate and Ideal Agent partner with highly vetted full-service agents. So you’ll have an experienced, top local realtor, but you’ll pay much less than what realtors typically charge.
These commission savings can be substantial. If you sell a house for $500,000, a traditional 3% listing agent would cost you $15,000. But with Clever's discounted rate of 1.5%, you’d pay just $7,500, saving you thousands of dollars.
If you’re ready to save on realtor fees while still getting high-quality service, Clever can find you agents from leading brokerages like Keller Williams and RE/MAX who charge half the typical rate. Simply fill out this quick form to connect with top local agents and start saving.
Negotiate realtor fees
If you already know the agent you want to work with, you can try to negotiate realtor commission rates. Even a 0.5% discount could save you thousands of dollars.
Negotiating will take some effort on your part, though, and it won’t always work out. You’re more likely to be successful if the agent expects:
- A quick sale
- Your house to sell for a high price, or
- You to work with them to buy your next house
When negotiating, make sure you know what the average real estate agent commissions are in your area so you understand what a reasonable discount is. Also, you might have more success by making your agent’s job easier, such as by investing in improvements to increase your home’s appeal or by offering to skip open houses if you don’t think they’re necessary.
But don’t just go with whichever agent agrees to the lowest rate. Even if you’re looking for a discount, you’ll still want an experienced agent who knows how to attract buyers and get you the best price.
For a surer bet, look for a low-commission realtor from the start.
