How Do Realtors Get Paid? (See What’s Changed)
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Richard Haddad Executive EditorClose
Richard Haddad Executive EditorRichard Haddad is the executive editor of HomeLight.com. He works with an experienced content team that oversees the company’s blog featuring in-depth articles about the home buying and selling process, homeownership news, home care and design tips, and related real estate trends. Previously, he served as an editor and content producer for World Company, Gannett, and Western News & Info, where he also served as news director and director of internet operations.
Two initial questions home sellers ask are “How much will my home sell for?” and “How much will it cost me to sell?” But another common concern soon follows: “How do Realtors get paid?”
Agent commissions can be a touchy subject, but the rules have changed, and the shift is in your favor as a seller. Following a landmark court settlement, sellers are no longer automatically expected to pay both the listing agent and buyer’s agent Realtor fees, which combined were traditionally 5%- 6% of the home’s sale price.
This post will break down how Realtors earn their income, explain what’s changed, and offer examples to help you understand your options in today’s evolving housing market.
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How do Realtors get paid?
Realtors earn their income through commissions, a percentage of the final sale price of the home. This commission is typically split between the listing agent and the buyer’s agent. Historically, the total commission ranged from 5% to 6% of the sale price. For example:
- On a $430,000 home, a 6% total commission would amount to $25,800.
- This amount would be split equally between the listing agent and the buyer’s agent, with each receiving $12,900.
The agents’ brokerages often take a portion of the commission, with the remaining balance going to the individual agents. Both agents typically receive their compensation after the sale is closed and the keys (and title) to the home have changed hands.
Cost before commissions: It should be noted that many listing agents invest their own money to market a home long before they receive a commission paycheck. This often includes paying a professional photographer for photos, videos, and drone footage, printing flyers and postcards, and even buying refreshments for open houses.
Who traditionally pays Realtor commissions?
For generations, sellers were responsible for paying both the listing agent’s and buyer’s agent’s commissions. This arrangement was designed to make it easier for buyers to afford professional representation without needing to pay out of pocket.
This more-than-a-century-old model of seller-paid Realtor fees has changed significantly. Buyers are now expected to negotiate compensation directly with their own agents, and sellers are no longer required to offer compensation to the buyer’s agent.
What’s changed with Realtor commission rules?
Following a recent court settlement involving the National Association of Realtors (NAR), buyers are now generally expected to pay their own agent’s fees. Sellers are typically responsible for covering only their listing agent’s commission, which averages 2.5%-3% of the sale price. Buyers’ agent fees, also averaging 2.5%-3%, are now the buyer’s responsibility unless the seller agrees to negotiate this expense.
For sellers, this change means lower upfront commission costs. However, in slower markets, agents may encourage sellers to offer to cover the buyer’s agent fees to attract more buyers. For instance:
- If you’re selling your $430,000 home, you will typically pay your listing agent’s fee of 3% ($12,900).
- In a slower market, you might also offer to pay 2.5% ($10,750) to the buyer’s agent, bringing your total commission expense to $23,650, still slightly less than the traditional 6% model.
While covering the buyer’s agent fee is optional, some sellers may find it worthwhile if it helps attract offers and keep the sale moving. In fact, according to HomeLight’s Top Agent Insights for Spring/Summer 2026 report, 57% of agents say that paying the buyer’s agent commission remains the most common seller concession, helping more home sales close successfully.
How to negotiate agent commissions as a seller
While Realtor fees have always been negotiable, the NAR settlement gives sellers more flexibility in negotiating commission structures. The new rules can also give more weight to seller concessions or credits, incentives that you, as a seller, can offer to buyers to sweeten the pot.
Offering to pay both commissions could make your home more attractive to buyers, especially first-time buyers who may not have the budget to pay their agent directly.
Or if you’re in a more active market with a desirable property, not having to pay 2.5%–3% to the buyer’s agent can increase your net proceeds on the sale.
Seller concession limits: Mortgage lenders put limits on how much sellers can chip in toward a buyer’s closing costs. These limits depend on the loan type, down payment, and whether the buyer plans to live in the home. For conventional loans backed by Fannie Mae, the limit is generally 3% to 9% of the home’s sale price or appraised value, whichever is lower.
For example, if you sell your home for $430,000 and the buyer’s limit is 3%, you could contribute up to $12,900 toward their closing costs, as long as the appraised value is at least $430,000. Keep in mind that help with closing costs and payments toward the buyer’s agent fees may follow different rules, so check the loan guidelines before agreeing to cover either expense.
Agent commission examples by home price
The table below illustrates how much you might pay in real estate agent commissions based on your home’s selling price. You can see estimates in three seller scenarios:
- You agree to pay both your listing and the buyer’s agent’s commission
- You only pay your listing agent’s commission
- The Buyer pays their own Realtor fees
For simplicity, one column estimates a combined 6% seller-paid commission fee, and the others show the separate, decoupled buyer and seller agent commissions.
| Sold price | Combined 6% fee | 3% listing agent fee | 3% buyer’s agent fee |
| $100,000 | $6,000 | $3,000 | $3,000 |
| $200,000 | $12,000 | $6,000 | $6,000 |
| $300,000 | $18,000 | $9,000 | $9,000 |
| $400,000 | $24,000 | $12,000 | $12,000 |
| $500,000 | $30,000 | $15,000 | $15,000 |
| $600,000 | $36,000 | $18,000 | $18,000 |
| $700,000 | $42,000 | $21,000 | $21,000 |
| $800,000 | $48,000 | $24,000 | $24,000 |
| $900,000 | $54,000 | $27,000 | $27,000 |
| $1,000,000 | $60,000 | $30,000 | $30,000 |
| $1,500,000 | $90,000 | $45,000 | $45,000 |
| $2,000,000 | $120,000 | $60,000 | $60,000 |
»Learn more: Don’t want to do the math yourself? Use our agent commission calculator to estimate your selling costs and see how much you could pay in Realtor fees. This can give you a clearer picture of your potential proceeds before you close the deal.
How to reduce real estate agent commission costs
When you’re selling a home, every dollar counts, especially when you’re trying to maximize your profit. Agent commissions may take a huge chunk of your proceeds, but you have more room to negotiate than you think. Explore a few ways to lower your real estate agent commission costs and hold on to more of your sale proceeds:
- Negotiate the commission rate: Discuss commission rates with your agent. In some markets, you can find an experienced agent willing to lower their rate. This is especially true for a less complex sale or a desirable property in a coveted location.
- Use a low-commission agent or brokerage: Many discount real estate groups offer lower fees. Make sure you understand their listing packages and weigh the pros and cons.
- Consider a flat-fee service: Some companies offer limited or flat-fee service to list your home on the multiple listing service (MLS) and assist with the sale.
- Offer incentives strategically: By limiting the number of concessions you offer to the buyer, you can increase your proceeds to offset commissions.
Do Realtors get paid if the home doesn’t sell?
In most cases, Realtors only earn their commission when the home sells. If your home doesn’t sell, you generally won’t owe your agent a commission. However, some listing agreements may include fees for marketing or other services. It’s important to review your contract carefully and discuss any potential costs with your agent upfront.
How can I estimate my home sale proceeds?
To get a ballpark estimate of how much you might make on your home sale, use HomeLight’s Net Proceeds Calculator. This free tool lets you enter the percentage of Realtor fees you expect to negotiate with your agent, as well as closing costs and what’s left to pay off on your mortgage.
Here are additional free tools offered by HomeLight to help you plan your home sale:
- Find a Top Agent
- Home Value Estimator
- Agent Commissions Calculator
- Home Affordability Calculator
- Best Time to Sell Calculator
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Key takeaways for home sellers
Knowing how Realtor commissions work can help you make smarter decisions when selling your home. From understanding who pays the fees to exploring ways to lower your costs, a little preparation can go a long way toward protecting your proceeds. Here’s a quick recap of what’s discussed:
- Realtors earn their income through commissions, typically calculated as a percentage of the home’s sale price.
- Historically, sellers covered both the listing agent’s and buyer’s agent’s fees, averaging 5%-6% of the sale price.
- Following the NAR settlement, buyers are now expected to pay their agent’s fees unless otherwise negotiated.
- Sellers can negotiate their listing agent’s commission and decide whether to offer to pay the buyer’s agent’s fee to attract more offers.
- Sellers should talk to their agent about commission fees early on to understand their options and figure out what works best for their situation.
If you’re preparing to sell your home and want to partner with a top agent, HomeLight can connect you with a proven expert in your city. Our partner agents have exceptional sale-to-list ratios, meaning they have a track record of helping their clients earn the highest proceeds possible. Connect with a reliable real estate agent today.
At HomeLight, we analyze over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs. Our data shows that the top 5% of real estate agents sell homes faster and for up to 10% more than average agents.
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