Table of Contents

6 min read May 02, 2023

Who Pays Realtor Fees and How to Skip It?

In most real estate transactions across the US, the seller pays the Realtor fees.

The average Realtor commission is between 4% and 6%. But you can always negotiate for a lower commission rate. Keep in mind, the Realtor commission rate will vary from state to state!

🚀 Key Takeaways

  • How Much Do Realtors Cost? Standard Realtor fees is 6% of your total home sale price.
  • Can You Negotiate Realtor Fees? Yes, a few Realtors are open to negotiate their fees. However, most won’t go lower than 5%.
  • How To Save On Realtor Fees? List your property with a tech-based Flat Fee MLS listing company like Houzeo. And save thousands in agent commission fees.

How Much Does a Realtor Cost?

The average commission for a Realtor is 6% of the home’s purchase price. This commission is split between the buyer’s agent and the seller’s agent.

Here’s an example. Say you are selling your home in Florida. The average price for a single-family home in Florida is around $377,000. You pay 6% in Realtor fees which comes up to $22,620 (split between the listing agent and the buyer agent).

However, with the shift towards online listings by flat fee MLS companies, most Realtors are open to negotiating their fees.

👉 SKIP TRADITIONAL REALTOR COMMISSION: List FSBO with for a flat fee of $349!

What do Realtor Fees Cover?

A Realtor acts as your guide through a real estate transaction. Always ask the Realtor beforehand about the services they provide within their standard fee.

Typically Realtor services include –

  • Comparative Sales Analysis: A CMA report helps determine the value of a property based on similar properties nearby. A Realtor will help you study the CMA report before selling or buying a home.
  • Pricing Assistance: Based on the CMA report, a Realtor will help you determine the right price for your home.
  • MLS Listing: Only real estate agents can list your property on the MLS. Or you can opt for the services of a flat fee MLS listing company like Houzeo.
  • Home Staging Advice: Home staging means preparing your home for sale. Realtors guide their clients through the process and even introduce you to home staging professionals, photographers, etc.
  • Marketing: A Realtor will market your home on the local MLS and other sites like Zillow, Trulia, etc. You may also get printed flyers and brochures from some Realtors.

Why do Sellers Pay the Realtor Fees?

The seller pays Realtor fees because the listing agent represents the seller and charges a 3% commission. While the buyer’s agent fee is considered a marketing expense for the seller. Think of it as a reward for the Realtor who gets you the best deal!

The buyer pays the final home sale price. So, ultimately the buyer too bears the costs of hiring a Realtor.

How to Save on Realtor Fees?

As the Seller the onus to pay the 6% Realtor Fees falls on you! However, if you play it smart you can definitely save at least 3% of the listing agent fee.

You can negotiate with your Realtor for a lower commission rate. Alternatively, you can opt for the services of a flat fee MLS Listing company. We have listed both ways for you!

How To Negotiate Real Estate Commission?

Real estate commissions are negotiable and legal. With increasing competition and better alternatives, real estate agents are willing to lower their commissions. Here are a few steps you can take to negotiate the right deal for yourself!

  • Know the Market and Trends: Before going to a realtor, study the Real Estate Housing Market trend comprehensively. Find out what your state’s average real estate commission is. This will assist you in determining whether the commission offered is reasonable or not.
  • Interview Multiple Real Estate Agents: Exploring choices is the simplest method to find the best value.
  • Allow Your Agent to Act as a Dual Agent: A dual agent or transactional agent works with both the seller and buyer. Since they will be earning a double commission, you can negotiate for a lower rate.

👉 Negotiate Real Estate Commission: Explore more ways to negotiate with your Realtor!

How to List Without Realtor?

You can opt for the services of a flat fee MLS listing company to list without a Realtor.

MLS is the most powerful tool in U.S. real estate. Homes listed on the MLS sold faster and for 17% more than off-MLS homes, according to a Bright MLS study.

So, whether you are selling a ranch in Los Angeles or a condo in Miami, you need to be on the MLS to get top dollar for your property. However, only Realtors have access to the MLS. And to list you, they will charge a 3% listing agent commission.

Now for the good news. Flat Fee MLS listing companies let FSBO sellers list their property on the local MLS for a fraction of the cost!

👉 Houzeo Flat Fee Listing: Check out the pricing for the top ranked flat fee MLS listing company in the US.

How to Skip Realtor Fees?

  1. Hire a Discount Real Estate Broker: Discount real estate brokers offer all the services of a traditional broker for a discounted commission. Typically, discount brokers will charge anywhere between 0.5% to 2% commission to list and sell your home.
  2. Sell to an iBuyer: Many iBuyers, like Opendoor and Offerpad, purchase hundreds of homes in the US. iBuyers can be a great option if you’re wondering how to sell my house fast.
  3. Sell to Cash Home Buyers: Individual cash home buyers and companies that buy houses for cash make all-cash offers, usually within 24 to 48 hours. Cash buyers let you skip the hassle of listing on the MLS, inspection, appraisal, etc.
  4. Sell For Sale By Owner: For Sale By Owner websites will help you list and sell a house by owner. You save thousands in listing agent commission.

Bottom Line

Buying or selling a home is a big and complicated financial transaction. An experienced Realtor provides sound advice, knowledgeable insights, and support from the list to close. However, this comes at a hefty price. Typically, 6% of your final home sale price! That is a lot of dollars.

To save on Realtor commission costs, we recommend the services of a tech-based Flat Fee MLS listing company. Houzeo is the top-ranked MLS listing company in the US. It meets all of your needs for a smooth and hassle-free home-selling process.

💲Save 3% Listing Agent Commission

Sell your home hassle-free with Houzeo’s technology for a $349* Flat Fee



Frequently Asked Questions

1. Are Realtor fees included in closing costs?

Yes. The 6% Realtor fee is considered a part of the seller's closing costs in most states.

2. Do buyers pay realtor fees?

The seller is mostly responsible for Realtor's commission costs. However, since the realtor fees are part of the final home sale price the buyer is indirectly bearing the cost too!

3. What percentage do most realtors charge?

The standard Realtor commission rate is 6%. However, you can always negotiate or opt for alternatives. Flat Fee MLS Listing companies like Houzeo can help you save thousands.

4. When buying a house who pays the realtor?

In most real estate transactions, the seller has to pay both the listing agent and buyer agent commission fees.

Related: who pays the realtor fees, typical real estate commission, how much are realtor fees, how much is realtor commission, how does realtor get paid at closing, who pays realtor fees buyer or seller, buyer agency compensation, standard real estate commission


Save $20

On Silver & up plans

Use Coupon Code:

Need help? Call us on
(844) 448-0110