{"id":24268,"date":"2026-03-23T04:19:41","date_gmt":"2026-03-23T11:19:41","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=24268"},"modified":"2026-03-23T21:11:19","modified_gmt":"2026-03-24T04:11:19","slug":"2-percent-real-estate-commission","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/2-percent-real-estate-commission\/","title":{"rendered":"Is a 2% Real Estate Commission a Good Way to Save Money?"},"content":{"rendered":"<p>If you\u2019re selling your home, a 2% real estate commission may seem enticing in comparison to the average 3% to 6% rate. But you may be wondering if you can expect the same value from a <a href=\"https:\/\/www.homelight.com\/blog\/low-commission-real-estate-agents\/\">low-commission real estate agent<\/a> that you\u2019d receive from a full-commission agent.<\/p>\n<p>In this article, we explore the reasons why some agents might offer a discounted rate and what kind of service you can expect from a low-commission agent or discount brokerage. To help you make an informed decision in your search, we spoke with top-performing real estate agents for expert insights.<\/p>\n\n\n\n\n\n<div class=\"geo-cta widget-cta widget-cta--content     widget-cta--dark widget-cta--dark-blue-gradient\">\n    <div class=\"widget-element--content\">\n        <div class=\"widget-element--content-header\">\n            <img decoding=\"async\" alt=\"homelight logo\" class=\"widget-element--logo\" src=\"https:\/\/www.homelight.com\/blog\/wp-content\/themes\/ccprototypev5\/images\/logo-small-cta.png\" width=\"106\" height=\"25\" \/>\n        <\/div>\n        \n                <h3 class=\"cta-headline widget--bold\">Find an Agent 100% Worth Their Fees<\/h3>\n                        <p>We&#8217;ll connect you with three top local agents proven to deliver amazing results for their clients. <span class=\"s1\">Our data shows that the top 5% of real estate agents across the U.S. sell homes for as much as 10% more than the average real estate agent.<\/span><\/p>\n        \n                <div class=\"widget-element--buttons\">\n            <a data-type=\"In Content CTA\" href=\"https:\/\/www.homelight.com\/find-agent\/quiz\/seller?#\/qaas=0\/\" class=\"cta-click-track widget-element--button\">Find My Agent<\/a>\n        <\/div>\n                    <\/div>\n<\/div>\n\n\n<div id=\"section--1\" data-toc-header=\"How a 2% commission works\" data-toc-type=\"head\"><\/div>\n<h2>How does a 2% real estate commission work?<\/h2>\n<p><a href=\"https:\/\/www.homelight.com\/blog\/low-commission-real-estate-agents\/\">Low-commission agents<\/a>, 2% commission companies, or discount brokerages charge a reduced 2% commission to home sellers. While this may look like a 1% to 4% discounted commission fee of the average 3% to 6% commission on a real estate transaction, it\u2019s actually a 1% discount or less, because it typically only applies to the listing agent\u2019s commission.<\/p>\n<p>Still, that one percent can add up to thousands of dollars in savings, depending on the price of your home. However, paying a reduced commission may impact the <a href=\"https:\/\/www.homelight.com\/blog\/how-much-will-i-make-selling-my-house\/\">total profit you make on your home sale<\/a>, leaving you with less money at the end of the day.<\/p>\n<div id=\"section--2\" data-toc-header=\"Average commission rates\" data-toc-type=\"head\"><\/div>\n<h2>What is the average real estate commission rate?<\/h2>\n<p>According to HomeLight\u2019s real estate transaction data compiled from thousands of home sales each year, the national average real estate agent commission rate is<a href=\"https:\/\/www.homelight.com\/real-estate-agent-commissions\"> currently 5.8%<\/a>. Locally, commission rates can vary. Here\u2019s a round-up of commission rates across a few major U.S. cities:<\/p>\n<ul>\n<li aria-level=\"1\"><a href=\"https:\/\/www.homelight.com\/los-angeles-ca\/real-estate-agent-commissions\">Los Angeles real estate commissions<\/a>: 4.58%<\/li>\n<li aria-level=\"1\"><a href=\"https:\/\/www.homelight.com\/san-francisco-ca\/real-estate-agent-commissions\">San Francisco real estate commissions<\/a>: 5.46%<\/li>\n<li aria-level=\"1\"><a href=\"https:\/\/www.homelight.com\/new-york-ny\/real-estate-agent-commissions\">New York City real estate commissions<\/a>: 5.50%<\/li>\n<li aria-level=\"1\"><a href=\"https:\/\/www.homelight.com\/bakersfield-ca\/real-estate-agent-commissions#agents-commission-calculator\">Bakersfield, California real estate commissions:<\/a> 5.12%<\/li>\n<li aria-level=\"1\"><a href=\"https:\/\/www.homelight.com\/san-diego-ca\/real-estate-agent-commissions\">San Diego, California commissions:<\/a> 4.82%<\/li>\n<li aria-level=\"1\"><a href=\"https:\/\/www.homelight.com\/atlanta-ga\/real-estate-agent-commissions\">Atlanta, Georgia commissions:<\/a> 5.72%<\/li>\n<li aria-level=\"1\"><a href=\"https:\/\/www.homelight.com\/washington-dc\/real-estate-agent-commissions\">Washington, DC commissions:<\/a> 5.30%<\/li>\n<li aria-level=\"1\"><a href=\"https:\/\/www.homelight.com\/fort-lauderdale-fl\/real-estate-agent-commissions\">Fort Lauderdale, Florida commissions:<\/a> 6.60%<\/li>\n<\/ul>\n<p>The data shows that in a typical real estate transaction, the seller usually pays somewhere between 5% and 6% in commission. This is if the seller is on the hook for both the listing agent and the buyer\u2019s agent commissions, which was more typically the arrangement before August 2024, when the <a href=\"https:\/\/www.homelight.com\/blog\/nar-lawsuit-settlement\/\">NAR lawsuit settlement terms<\/a> took effect. This change \u201cdecoupled\u201d seller and buyer agent compensation. A seller paying for the listing agent&#8217;s commission is on the hook for around 3% of the transaction, and <a href=\"https:\/\/www.homelight.com\/blog\/buyer-real-estate-commission-rules-and-regulations\/\">buyers are now responsible for paying their own Realtor fees<\/a>. However, in some markets, sellers are still offering to pay the buyer\u2019s agent commissions.<\/p>\n<p>The <a href=\"https:\/\/www.homelight.com\/blog\/how-to-find-a-good-listing-agent\/\">listing agent <\/a>also doesn\u2019t pocket their share of the fee. Both the buyer\u2019s agent and the listing agent will pay a portion of their <a href=\"https:\/\/www.homelight.com\/blog\/average-broker-commission\/\">commission to their companies<\/a> for brokerage and desk fees.<\/p>\n<div id=\"section--3\" data-toc-header=\"Savings with a 2% commission\" data-toc-type=\"head\"><\/div>\n<h2>How much can I save with a 2% real estate commission?<\/h2>\n<p><span style=\"font-weight: 400;\">In a 2% real estate commission scenario, the 2% commission fee only applies to the listing agent\u2019s commission. It\u2019s important for a seller to understand that the commission paid to the <\/span><a href=\"https:\/\/www.homelight.com\/blog\/buyer-buyers-agents-real-estate-commissions\/\"><span style=\"font-weight: 400;\">buyer\u2019s agent<\/span><\/a><span style=\"font-weight: 400;\"> doesn\u2019t disappear. If you offer to pay for the buyer\u2019s agent commission to make your listing more enticing, the rate is still around <\/span><a href=\"https:\/\/www.homelight.com\/blog\/real-estate-agent-commission\/\"><span style=\"font-weight: 400;\">2% to 3% in commission.<\/span><\/a><\/p>\n<p>For example, if the average commission in your area is 5.8%, you may pay 2.9% (50% of 5.8%) to the buyer\u2019s agent on top of the discounted 2% fee paid to the listing agent, for a total of 4.9% commission. When you account for the buyer\u2019s agent costs, the savings gap you\u2019d earn with a 2% versus a 6% commission agent narrows considerably.<\/p>\n<p>In the chart below, we show you the total commissions you\u2019ll pay with a discounted 2% listing fee and a 2.5% buyer\u2019s fee. The actual amount you\u2019ll pay a buyer\u2019s agent depends on what\u2019s typical for your area and the rate you agree to pay.<\/p>\n<table>\n<tbody>\n<tr>\n<td><strong>Sale Price<\/strong><\/td>\n<td><strong>2% Commission for listing agent<\/strong><\/td>\n<td><strong>2.5% commission for buyer\u2019s agent*<\/strong><\/td>\n<td><strong>Total commission paid (4.5%)<\/strong><\/td>\n<td><strong>Standard 6% Commission<\/strong><\/td>\n<td><strong>Potential commission savings<\/strong><\/td>\n<\/tr>\n<tr>\n<td>$175,000<\/td>\n<td>$3,500<\/td>\n<td>$4,375<\/td>\n<td>$7,875<\/td>\n<td>$10,500<\/td>\n<td>$2,625<\/td>\n<\/tr>\n<tr>\n<td>$225,000<\/td>\n<td>$4,500<\/td>\n<td>$5,625<\/td>\n<td>$10,125<\/td>\n<td>$13,500<\/td>\n<td>$3,375<\/td>\n<\/tr>\n<tr>\n<td>$300,000<\/td>\n<td>$6,000<\/td>\n<td>$7,500<\/td>\n<td>$13,500<\/td>\n<td>$18,000<\/td>\n<td>$4,500<\/td>\n<\/tr>\n<tr>\n<td>$400,000<\/td>\n<td>$8,000<\/td>\n<td>$10,000<\/td>\n<td>$18,000<\/td>\n<td>$24,000<\/td>\n<td>$6,000<\/td>\n<\/tr>\n<tr>\n<td>$525,000<\/td>\n<td>$10,500<\/td>\n<td>$13,125<\/td>\n<td>$23,625<\/td>\n<td>$31,500<\/td>\n<td>$7,875<\/td>\n<\/tr>\n<tr>\n<td>$700,000<\/td>\n<td>$14,000<\/td>\n<td>$17,500<\/td>\n<td>$31,500<\/td>\n<td>$42,000<\/td>\n<td>$10,500<\/td>\n<\/tr>\n<tr>\n<td>$1,000,000<\/td>\n<td>$20,000<\/td>\n<td>$25,000<\/td>\n<td>$45,000<\/td>\n<td>$60,000<\/td>\n<td>$15,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><em>*Commission rates are estimates and are not a guarantee for your home sale.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A discounted 2% commission rate seems like a great way to save money on your home sale. But what value might be cut with the rate?<\/p>\n","protected":false},"author":279,"featured_media":40291,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"cybocfi_hide_featured_image":"","footnotes":""},"categories":[319,238],"tags":[764],"class_list":["post-24268","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-selling-advice","category-working-with-agents","tag-how-real-estate-agent-commissions-work"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.0 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Is a 2% Real Estate Commission a Good Way to Save Money?<\/title>\n<meta name=\"description\" content=\"A discounted 2% commission rate seems like a great way to save money on your home sale. 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