{"id":32005,"date":"2025-07-07T02:00:21","date_gmt":"2025-07-07T09:00:21","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=32005"},"modified":"2025-07-07T22:06:31","modified_gmt":"2025-07-08T05:06:31","slug":"how-to-negotiate-real-estate-commission","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/how-to-negotiate-real-estate-commission\/","title":{"rendered":"How to Negotiate Real Estate Agent Commission"},"content":{"rendered":"

The commission you pay your real estate agent<\/a> to help sell your home may seem steep. You want the best return on your largest investment so you can put it toward a new home, your kid\u2019s college fund, or retirement. Fortunately, the fee you pay your real estate agent is absolutely negotiable.<\/p>\n

In this article, we\u2019ll walk you through the process of negotiating your real estate commission, and provide insights into whether seeking a lower rate will fit your selling objectives. To better answer your questions, we spoke with top-performing agents Rick Ruiz<\/a>, who sells homes nearly 46% quicker than the average Las Vegas agent; and Robert Dombrowsky<\/a>, who works with over 85% more single-family homes than the average Fair Lawn, New Jersey agent.<\/p>\n\n\n\n\n\n

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\n \"homelight\n <\/div>\n \n

Connect with a Top Agent<\/h3>\n

It takes just two minutes to match clients with the best real estate agents, who will contact you and guide you through the process. To connect with an agent, simply tell us a little bit about your property (single-family, condo, townhouse, mobile home, commercial, or vacant lot) and how soon you\u2019re looking to sell.<\/p>\n \n

\n Find Agent<\/a>\n <\/div>\n <\/div>\n<\/div>\n\n\n
<\/div>\n

What is a typical real estate agent commission?<\/h2>\n

The average commission rate for a home sale is 5% to 6%<\/a>, traditionally deducted from the net proceeds of the seller and split 50\/50 between the listing (or seller\u2019s) agent and the buyer\u2019s agent.<\/p>\n

This commission structure changed in 2024<\/a> to decouple the listing agent and buyer\u2019s agent commissions. A listing agent and a buyer\u2019s agent still typically receive the same commission amount of around 2.5% to 3% each, with negotiations determining who pays for each agent\u2019s commission<\/a>.<\/p>\n

<\/div>\n

Who pays a real estate agent\u2019s commission?<\/h2>\n

According to new commission rules and regulations, the seller is on the hook for the listing agent commission of around 2.5% to 3%, while the buyer will pay the 2.5% to 3% buyer\u2019s agent commission. Still, many sellers offer to pay<\/a> the buyer\u2019s agent commission as an additional marketing tool for their property.<\/p>\n

However, the buyer and seller don\u2019t pay the fee directly to the agents. The escrow or settlement company that is overseeing the closing receives payment from the buyer\u2019s lender (or the buyer if it\u2019s an all-cash purchase) and then distributes all payments, including the commission checks to each agent\u2019s brokerage at closing. The listing agent and the buyer\u2019s agent then receive their commission from their brokers.<\/p>\n

\u201cAt the end of the day, the commission payment comes out of the transaction,\u201d says Dombrowsky.<\/p>\n

<\/div>\n

Do the buyer and seller agents keep all the commission?<\/h2>\n

No. Agents receive part of the total commission from their brokerage. The amount the agent keeps \u2013 typically 50%, but up to 95% \u2013 depends on each agent\u2019s experience, the number of homes they\u2019ve sold, and the brokerages that they work for.<\/p>\n

Below is an example of how a 6% real estate commission is typically split in an agent-assisted home sale with the seller covering both the listing agent and the buyer\u2019s agent commission. We\u2019ve used a sale price of $400,000.<\/p>\n

6% commission split example<\/h3>\n

Seller pays 6% commission: $24,000
\nHow that $24,000 might be split:<\/p>\n\n\n\n\n
Seller commission<\/strong><\/td>\nSelling brokerage share\u00a0<\/strong><\/td>\nSelling agent share<\/strong><\/td>\n<\/tr>\n
$12,000 (3%)<\/td>\n$6,000 (1.5%)<\/td>\n$6,000 (1.5%)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n\n\n\n\n
Buyer commission<\/strong><\/td>\nBuyer brokerage share\u00a0<\/strong><\/td>\nBuyer\u2019s agent share<\/strong><\/td>\n<\/tr>\n
$12,000 (3%)<\/td>\n$6,000 (1.5%)<\/td>\n$6,000 (1.5%)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

In our example above, the brokerage received 50% of their agents\u2019 commissions. Here are the (agent\/broker) commission splits for some of the top brokers in the country:<\/p>\n

    \n
  • Century 21: 50\/50<\/li>\n
  • RE\/MAX: starting at 60\/40<\/li>\n
  • Keller Williams:\u00a0 70\/30<\/li>\n
  • ExP: starting 80\/20<\/li>\n
  • HomeServices of America: starting at 80\/20<\/li>\n
  • Compass: starting at 80\/20<\/li>\n<\/ul>\n

    Here is how the commission will look like if the seller pays for the listing agent\u2019s 3% commission, while the buyer pays for the buyer\u2019s agent\u2019s 3% commission.<\/p>\n

    Seller pays 3% listing agent commission: $12,000
    \nBuyer pays 3% buyer\u2019s agent commission: $12,000<\/p>\n\n\n\n\n
    Seller commission<\/strong><\/td>\nSelling brokerage share\u00a0<\/strong><\/td>\nSelling agent share<\/strong><\/td>\n<\/tr>\n
    $12,000 (3%)<\/td>\n$6,000 (1.5%)<\/td>\n$6,000 (1.5%)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

     <\/p>\n\n\n\n\n
    Buyer commission<\/strong><\/td>\nBuyer brokerage share\u00a0<\/strong><\/td>\nBuyer\u2019s agent share<\/strong><\/td>\n<\/tr>\n
    $12,000 (3%)<\/td>\n$6,000 (1.5%)<\/td>\n$6,000 (1.5%)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

    We explain how to negotiate a lower real estate agent commission rate and still receive comprehensive services.<\/p>\n","protected":false},"author":279,"featured_media":52090,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"cybocfi_hide_featured_image":"","footnotes":""},"categories":[322,238],"tags":[764],"class_list":["post-32005","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-logistics","category-working-with-agents","tag-how-real-estate-agent-commissions-work"],"acf":[],"yoast_head":"\nHow to Negotiate Real Estate Agent Commission<\/title>\n<meta name=\"description\" content=\"We explain how to negotiate a lower real estate agent commission rate and still receive comprehensive services.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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