Who Pays Realtor Fees in California?
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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.
If you’re preparing to sell a home in California, you may have heard that there are new rules governing real estate agent commissions. The big questions on your mind are likely: who pays Realtor fees in California, and will the new guidelines impact my sale proceeds?
The rule changes are tied to last year’s National Association of Realtors (NAR) court settlement, which gave sellers more flexibility in how commissions are handled.
In this post, we’ll break down how Realtor fees typically work in California, and how much you can expect to pay. You’ll also be able to use our California Real Estate Commission Calculator to run estimates based on your own sale price and circumstances.
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Who pays Realtor fees in California?
Traditionally, home sellers covered both their own listing agent’s fee and the buyer’s agent’s commission. Under the new rules, sellers are no longer automatically obligated to compensate the buyer’s agent. However, despite the NAR changes, most California home sellers still pay both agents.
In a recent HomeLight survey, 92% of top agents nationwide reported that sellers are continuing to cover buyer’s agent commissions. Conversations with California agents echo this finding — particularly in high-cost metros like Los Angeles, San Diego, and San Francisco, where buyers are already stretching to cover steep down payments and closing costs.
For example, in Los Angeles County, where the median home price is around $1,000,000, buyers typically put 10% to 15% down, which means coming up with as much as $150,000 cash upfront.
With that level of financial strain, many buyers would struggle to pay their own agent directly. So while sellers in California are not required to pay these fees, most do so because it:
- Expands the buyer pool, since most buyers work with an agent
- Helps their listing stand out in a market with high housing costs and limited inventory
- Encourages stronger offers by signaling cooperation with buyer agents
The bottom line: While the NAR settlement rule changes provide seller options, the prevailing advice from experienced California agents is simple: If you want to get your home sold in a market filled with cash-strapped buyers, offer to pay their agent fees.
California real estate commission calculator
So, how much can you expect Realtor fees to cost you in California? While commissions vary, the average combined rate in the Golden State is 5.18% of the home’s sale price. On an $800,000 home, that comes to $41,400 in commission fees split between the listing and buyer’s agents and their brokers.
To help you see the numbers more clearly, we’ve built a California Real Estate Commission Calculator. This tool allows you to compare scenarios depending on whether you offer a buyer’s agent commission, negotiate a lower rate, or explore alternative structures.
Do sellers have to pay a buyer’s Realtor fees in California?
California sellers are not required to pay a buyer’s agent commission under the new NAR rules. But in practice, most sellers still do. The reason comes down to buyer behavior and agent representation.
According to NAR, 88% of homebuyers in the U.S. use a real estate agent to help them purchase a home. In California, where the process is especially complex due to high prices, layered inspections, and disclosure requirements, that percentage is often even higher.
If you decide not to offer a buyer’s agent commission, you run the risk of shrinking your buyer pool. Agents may be less motivated to show your home if their compensation depends on the buyer covering it directly. And many buyers, already strapped for cash with closing costs and California’s property taxes, may simply move on to listings where the seller is covering their agent’s fee.
So while you can decline to cover a buyer’s agent fee, the tradeoff could be fewer showings, a longer selling timeline, and potentially a lower net result.
Can you negotiate Realtor fees in California?
Realtor fees in California (and every state) are fully negotiable. This was true even before the NAR settlement. What’s changed is that sellers are more aware of their options, and buyers are required to negotiate their agent’s compensation in writing, even if that means making it clear they want to find a seller willing to pay their Realtor fee.
As a seller, you can determine a target commission rate you’re willing to pay on both sides of the transaction, depending on your price point and location.
For example, if you’re selling a $1.5 million San Francisco property, you might be able to negotiate a lower combined commission percentage of 5% because the total dollar amount is already high. In contrast, if you’re selling a $450,000 condo in Sacramento, you may see commission rates closer to 6% because the property value is lower.
Here are a few ways California sellers approach commission negotiations:
- Negotiate a lower total commission rate: Some California agents may accept a reduced rate, especially for high-priced homes or in competitive markets like San Francisco, Santa Monica, and San Diego.
- Adjust the commission split: Instead of offering to pay the full buyer’s agent fee, you can propose a different percentage or only cover your listing agent’s side.
- Tie the rate to performance: Agree to pay a higher commission percentage if the home sells above your target price and a lower rate if it sells below.
- Consider flat-fee or limited-service options: Some California brokerages offer à la carte listing services at lower rates for experienced or DIY sellers.
Of course, commission savings shouldn’t be your only goal. California’s housing market is competitive and complex, from disclosure laws that require detailed documentation to local market trends that vary between counties. An experienced agent who charges a traditional fee can often net you more proceeds at the closing table by pricing the property correctly, marketing it effectively, and negotiating with skill.
Additional free tools to help you plan your California home sale:
- Home Value Estimator
- Net Proceeds Calculator
- Best Time to Sell Calculator
- Recently sold California homes
What other concessions can help sell a home in California?
If you’re hesitant to cover the buyer’s agent commission, offering other seller concessions or credits can make your listing more appealing in California’s high-cost market. Here are some of the most common concessions California sellers use to attract buyers:
- Closing cost credits: Reduce the buyer’s upfront expenses by covering part of their closing costs.
- Interest rate buydowns: Contribute to lowering the buyer’s mortgage rate for the first year or two, easing the impact of high interest rates on monthly payments.
- Repair credits: Instead of fixing every issue uncovered in inspections, offer a credit that lets buyers handle repairs after closing — a popular option for older California homes.
- Home warranty coverage: Covering the first year of a home warranty provides buyers with more peace of mind.
According to HomeLight’s survey of top agents, the most widely used concessions today are repair credits (52%), closing cost assistance (50%), and interest rate buydowns (21%).
In California and the Pacific region, 92% of surveyed top agents reported price cuts in their markets, indicating that sellers need to be prepared to offer incentives and negotiate to close a deal.
Why top California agents can still net you more
The commission rules may have changed, but strategy still matters — and in California’s high-cost housing market, partnering with a top local agent can mean the difference between leaving tens of thousands of dollars on the table and walking away with the highest proceeds.
In fact, HomeLight’s transaction data shows that the top 5% of agents sell homes for up to 10% more than average agents.
An experienced local agent can help you:
- Price your home right for the highest proceeds and a fast selling timeline
- Understand your local California market norms for buyer agent fees
- Advise on whether paying the buyer’s side makes sense in your situation
- Help you gain a clearer picture of what your California home is worth
- Evaluate offers and negotiate the right balance of concessions or credits
- Assist you with California’s complex seller disclosure requirements
HomeLight’s free Agent Match tool analyzes over 27 million transactions and thousands of reviews to connect you with top-performing California agents based on your needs.
Whether you decide to pay the buyer’s agent commission or offer other concessions, your ultimate goal is the same — a smooth, successful home sale.
See HomeLight’s California Seller Resource Center for more expert tips and resources.
Header Image Source: (rinderart/DepositPhotos)
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