The average real estate commission can hit up to 6% in 2025, of which you pay 3% to the listing agent. That’s $13,153 in commissions on a $438,466 home – just to get it on the MLS. Skip it! With Houzeo, America’s best real estate platform, your home gets listed for just $249.
But there’s more! Post NAR Settlement, the buyer’s agent commissions are negotiable. This means you could pay even $0 to the buyer’s agent, saving around $26,307. That goes a long way, especially when every dollar counts!
SELLERS – NEW RULES, BIGGER PROFITS! 📌
- Post-NAR Power Shift: The buyer’s agent commission is now in the hands of the seller. You can pay zero, negotiate, or offer it as a concession – the choice is yours.💪
- Negotiate Each Dollar: Never assume that the real estate commission is fixed! Your negotiating power impacts your profit.💲
- Master Your Sale: Research the local market, find local median home prices, and set the perfect asking price for a stellar home sale.💡
- Save With Flat Fee MLS Service: Your home gets listed on the MLS for a flat fee- that’s a fraction of the cost you’d pay to the Realtor.⚖️
What Is the Typical Real Estate Agent Commission?
It is a percentage of your home’s sale price that you pay as a standard Realtor commission. The common real estate commission is split between the listing agent and the buyer’s agent. The average real estate commission rates can reach up to 6%, and are negotiable.
Which means you pay around 2.5% to 3% commission to each of them. That’s a whopping $26,307 on a median-priced $438,466 home! Imagine using this for a week in Hawaii, or a down payment on a dream yacht!
What Impacts Your Realtor Fees?
The real estate commission isn’t set in stone! Here are some of the factors that influence the Realtor’s fee:
- Property Type: Single-family homes typically align with the state average rates. Luxury properties might see lower percentages (4%-5%) due to their high sale price. Conversely, vacant land or commercial properties command more due to longer sales cycles.
- Market Conditions: In a seller’s market (low inventory), agents might be more flexible as homes sell faster. However, in a buyer’s market (high inventory), agents seek higher rates due to increased marketing needs.
- Agent Experience and Services: Experienced agents often ask full fees for their expertise and services they offer, such as professional photography, marketing, negotiation, etc. Less experienced agents or those offering limited services might be more negotiable.
What Are the Regional Real Estate Commissions?
Real estate agent fees aren’t one-size-fits-all! Location matters, and you can expect notable regional variations. Real Estate commissions in California and Texas, the median home sale prices have grown by 6.1% and 2.8%, respectively. There, a typical real estate commission for realtors may go up to 4% due to the high competition among buyers.
In contrast, real estate agent fees in Vermont and Louisiana are often affordable due to less competition. They may typically range from 2.5 to 3%.
Average Real Estate Commission by State:
Real estate fees aren’t one-size-fits-all! Location matters, and you can expect regional variations. Less competitive markets like West Virginia, Alabama, or Oklahoma can see lower rates.
However, states with tourists and luxury condos like California, Hawaii, New York, and other affluent areas can see higher rates. This is due to their prime location, limited availability of land, high demand, and the prestige associated with their luxury lifestyles.
Who Pays the Realtor Fees?
As per the new real estate commission laws, it depends on how you negotiate. Here’s how the real estate agent fees are compensated now:
1. Listing Agent Fees: Who Pays?
If you’re a home seller, you pay the listing agent commission. It’s generally 3% of your home’s selling price and is included in the closing costs for sellers. Your listing agent and broker further divide this commission between them.
2. Buyer Agent Commission: Who Covers the Cost?
Here are 3 ways to pay the buyer’s agent commission:
- Sellers Cover the Buyer’s Agent Commission: You can choose to pay the 6% real estate commission – 3% to your listing agent and 3% to the buyer’s agent. However, you or your agent will have to contact the buyer’s agent to make this offer.
- Buyers Pay Their Agents: The buyer can choose to (or you can ask them to) compensate their agent. Buyers’ agents typically require their clients to sign an agreement. It clearly states the commission amount that the buyer has to pay.
- Sellers and Buyers Negotiate a Deal: In a buyer’s market, buyers can bid higher and request you to offer a concession. The amount above the concessional rate goes to the buyer’s agent.
Does the NAR Settlement Benefit Home Sellers?
Thanks to the NAR Settlement, your wallet can catch a break! The new real estate commission rules favor home sellers in 3 interesting ways:
1. You Get More Control Over Costs
You now have the power to decide if and how much you contribute to the buyer’s agent. This means you can offer nothing or negotiate a specific amount as a concession.
2. You Enjoy Clearer Deal Terms
The buyer agents now sign written agreements with their clients for their services and pay. This indicates no more hidden deals for you. All the parties know the costs upfront, leading to a smoother home sale. Remember: if it’s not in writing, it’s not happening!
3. You Attract More Serious Buyers
With direct client agreements, buyer agents would bring only committed buyers for your property. This filters out casual shoppers, ensuring more qualified offers for you!
How to Save on Real Estate Commissions?
When you maximize net profit, you minimize costs! In this hot market, you have more options than ever to save up on the hefty commissions. Here are some ways to save thousands when selling your home:
1. List for a Flat Fee
If you want max exposure without high commissions, but are unsure how to list on the MLS, Houzeo is your answer. Your home gets listed within 24 hours, at a fraction of a Realtor’s cost. It’s almost like ordering drive-thru at Chick-fil-A.
2. Sell ‘FSBO‘
You can go for the best FSBO websites and sell your home without a Realtor. You’ve got to market your home, manage showings, and handle negotiations, all by yourself. It is like steering your boat through the Mississippi with only a map!
But here’s the easiest way to sell FSBO, you get licensed broker assistance to help you sell like a pro while saving thousands!
FSBO Home Sale: The Blueprint 📜
If you want to sell without a Realtor, you don’t have to feel overwhelmed! This free FSBO checklist is a step-by-step guide for a smooth, commission-free sale.
Keep the Commission, Take the Checklist
Smart sellers use checklists. Savvy sellers use ours.
Download Your FSBO Checklist3. Choose a Discount Real Estate Broker
You can get all traditional Realtor services at discounted rates (1% to 1.5%) with discount real estate brokers. Most of them offer full-service Realtor benefits, too. Now that’s striking gold without the price tag.
👉 List Your Home Now and Save Thousands on Commissions
4. Sell to an iBuyer or Cash Buyer
If you need to sell your home fast for cash, a cash buyer marketplace can deliver! You get quick, competitive offers, up to 100% of FMV for your property as multiple buyers bid. It’s kind of like the latest iPhone on launch day, everybody wants it!
What Should You Do Before Paying a Realtor Commission?
To sell your home like a pro, you must master commission negotiation and know what you’re paying for! Don’t be a rookie and use these tips to outsmart common mistakes.
- Negotiate Your Fee: Don’t assume the 5% to 6% commission is final. You can negotiate for a lower commission rate.
- Look Beyond the Commission Rate: Paying a hefty fee doesn’t always mean that you’ll get the best service. You might need to market your property well to make your home sell faster in the current housing market.
- Evaluate the Services Included: Some agents might offer fewer services for the same standard commission. Finalize your commission rate after you clarify what their package includes (e.g., home staging, photography, marketing).
- Widen Your Buyer Pool: You can offer a concession to cover a part of the buyer’s agent fee. This can significantly help you attract a large number of buyers who require financial assistance through their agent.
How to Avoid High Realtor Fees With Houzeo?
Houzeo is the answer for you! It’s America’s No.1 real estate buying and selling platform. For sellers, Houzeo also offers various solutions, including Flat Fee MLS listing plans. You can save the bag and keep more of your home’s equity. Here’s how you can slash commissions and maximize your profit:
- #1: Visit Houzeo.com: This is your first step towards taking control of your sale and saving thousands in commissions.
- #2: Create Your Account and Start Listing: Set up your profile in minutes, then click “Sell Your Property” on your dashboard to begin your house sale journey.
- #3: Enter Property Details: Fill in all crucial details – beds, baths, square footage, etc. Also, strategically price your home for sale to attract buyers.
- #4: Choose Your Flat Fee MLS Plan: Pick the plan that aligns with your needs while selling a house. Each option comes with tailored features, comprehensive services, and commission savings.
- #5: Upload Pictures and Sign Agreement: Add your best shots and digitally sign your listing agreement to get your home live on the MLS fast!
How Much Do You Save With Houzeo?
Almost $21,000!
When you sell your house with a listing agent, you may have to spend a whopping $26,307 on a median home of $438,466. However, with Houzeo, you get to save a huge $21,922! That’s your family’s ticket to Six Flags and Universal Studios!
| Service Provider | Fee | Savings |
| Real Estate Agent | 3% Listing Fee + 3% Buyer’s Agent Commission: $26,307 | $0 |
| Houzeo | Fixed Fee: $299 + $4,101 = $4,385 | $21,922 |
Why Pay More When You Don’t Have To?
Houzeo cuts the 3% listing agent fee, helping you keep thousands in your pocket. The Houzeo Mobile App is super easy to use and makes selling your house a cakewalk. Sell smarter with Houzeo, America’s highest-rated platform for a truly stellar sale!
» Houzeo Reviews: Find out what customers are saying about Houzeo.com.
