{"id":5581,"date":"2026-01-20T02:00:00","date_gmt":"2026-01-20T10:00:00","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=5581"},"modified":"2026-03-13T09:19:49","modified_gmt":"2026-03-13T16:19:49","slug":"real-estate-agent-commission","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/real-estate-agent-commission\/","title":{"rendered":"Real Estate Agent Commission: What Do Agents Make in 2026?"},"content":{"rendered":"

Most real estate agents get paid through commissions. Commissions are typically calculated as a percentage of a property\u2019s sale price, though some brokerages will charge a flat fee<\/a>.<\/p>\n

Average real estate agent commission rates<\/a> nationwide have traditionally been around 5.8% of the home sale price, but court-mandated changes in commission and homebuyer rules<\/a> reshaped these percentages and even shifted who pays Realtor fees.<\/p>\n

For generations, the commission has typically been paid by the home seller<\/a>, and the seller\u2019s agent splits it with the buyer\u2019s agent. Effective August 17, 2024, a court settlement<\/a> by the National Association of Realtors (NAR) \u2013 a decision that is under appeal<\/a> nearly two years after its initial implementation \u2013 decoupled seller and buyer agent compensation, giving buyers the responsibility to negotiate commissions directly with their own agent.<\/p>\n

However, sellers can still offer to pay both the listing and buyer agent commissions. Such an offer can be used as a strategic concession<\/a> to attract buyers and speed up a home sale.<\/p>\n

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How much do real estate agents make?<\/h2>\n

If you choose the traditional seller-funded commission option, you can expect to pay your agent between 5% and 6% in commissions when selling a home in 2026, with some variation based on location. On a property worth $400,000, that amounts to $20,000\u2013$24,000 in commission costs.<\/p>\n

If you are only covering your listing agent<\/a> commission, the Realtor fees would be about half that amount ($10,000\u2013$12,000). Your total will depend on the rate you negotiate and whether you offer to pay the buyer\u2019s agent.<\/p>\n

Let\u2019s look at how commissions might play out by home price broken out in three ways:<\/p>\n

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  1. If you, as the seller, agree to pay both the listing and buyer agent fees<\/li>\n
  2. If you only pay a typical 3% listing agent commission<\/li>\n
  3. What the buyer might pay if they negotiate a 3% commission<\/li>\n<\/ol>\n

    For simplicity, we\u2019ll use a 6% commission and show the decoupled buyer and seller fee rates.<\/p>\n

    Commission examples by home price<\/h3>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
    Home price<\/strong><\/td>\nCombined 6% fee<\/strong><\/td>\n3% listing agent fee<\/strong><\/td>\n3% buyer\u2019s agent fee<\/strong><\/td>\n<\/tr>\n
    $200,000<\/td>\n$12,000<\/td>\n$6,000<\/td>\n$6,000<\/td>\n<\/tr>\n
    $300,000<\/td>\n$18,000<\/td>\n$9,000<\/td>\n$9,000<\/td>\n<\/tr>\n
    $400,000<\/td>\n$24,000<\/td>\n$12,000<\/td>\n$12,000<\/td>\n<\/tr>\n
    $500,000<\/td>\n$30,000<\/td>\n$15,000<\/td>\n$15,000<\/td>\n<\/tr>\n
    $600,000<\/td>\n$36,000<\/td>\n$18,000<\/td>\n$18,000<\/td>\n<\/tr>\n
    $700,000<\/td>\n$42,000<\/td>\n$21,000<\/td>\n$21,000<\/td>\n<\/tr>\n
    $800,000<\/td>\n$48,000<\/td>\n$24,000<\/td>\n$24,000<\/td>\n<\/tr>\n
    $900,000<\/td>\n$54,000<\/td>\n$27,000<\/td>\n$27,000<\/td>\n<\/tr>\n
    $1,000,000<\/td>\n$60,000<\/td>\n$30,000<\/td>\n$30,000<\/td>\n<\/tr>\n
    $1,500,000<\/td>\n$90,000<\/td>\n$45,000<\/td>\n$45,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    More real estate agent commission examples<\/h3>\n

    The table below illustrates a wide range of different commission amounts you might pay on a home with a $400,000 selling price, depending on the compensation arrangements of your sale. We\u2019ve started with lower, non-typical fees in case you happen to be working with a low-commission agent<\/a>. (We\u2019ll share more about discount and limited-service agents later in our post.)<\/p>\n

    Commission examples on $400,000 home purchase<\/h3>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
    Commission rate<\/strong><\/td>\nAgent fee<\/strong><\/td>\nCommission rate<\/strong><\/td>\nAgent fee<\/strong><\/td>\n<\/tr>\n
    1.25%<\/td>\n$5,000<\/td>\n3.75%<\/td>\n$15,000<\/td>\n<\/tr>\n
    1.5%<\/td>\n$6,000<\/td>\n4%<\/td>\n$16,000<\/td>\n<\/tr>\n
    1.75%<\/td>\n$7,000<\/td>\n4.25%<\/td>\n$17,000<\/td>\n<\/tr>\n
    2%<\/td>\n$8,000<\/td>\n4.5%<\/td>\n$18,000<\/td>\n<\/tr>\n
    2.25%<\/td>\n$9,000<\/td>\n4.75%<\/td>\n$19,000<\/td>\n<\/tr>\n
    2.5%<\/td>\n$10,000<\/td>\n5%<\/td>\n$20,000<\/td>\n<\/tr>\n
    2.75%<\/td>\n$11,000<\/td>\n5.25%<\/td>\n$21,000<\/td>\n<\/tr>\n
    3%<\/td>\n$12,000<\/td>\n5.5%<\/td>\n$22,000<\/td>\n<\/tr>\n
    3.25%<\/td>\n$13,000<\/td>\n5.75%<\/td>\n$23,000<\/td>\n<\/tr>\n
    3.5%<\/td>\n$14,000<\/td>\n6%<\/td>\n$24,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    Still curious about agent fees? Next up are the answers to common questions about real estate agent commissions.<\/p>\n

    <\/div>\n

    Who pays real estate commission fees?<\/h2>\n

    Historically, the seller in a transaction paid the commission<\/a> fees in full. As top real estate agent Rachel Moussa<\/a> of Flower Mound, Texas, explains, in most places, \u201cthe standard has been for sellers to pay both the listing agent and the buyer\u2019s agent\u2019s commission.\u201d<\/p>\n

    However, as part of the NAR lawsuit settlement terms, buyers are now expected to negotiate and pay their own agent fees. To accommodate and reinforce this change, buyers are being asked to sign a buyer-broker agreement<\/a> even before touring a property.<\/p>\n

    In addition, Moussa explains that under the old model, \u201cthe listing agent [would] put on the multiple listing service<\/a> (MLS) what percentage the seller agreed to pay cooperating brokers.\u201d But under the new rules, compensation offers are no longer allowed to be posted on NAR-operated MLS systems.<\/p>\n

    This change was made to avoid what is known as \u201csteering,\u201d where some buyers\u2019 agents would only show their clients homes that would make them the most money. Commission offers can still be shared from agent to agent through off-MLS communications, such as phone calls, emails, and non-NAR real estate portals.<\/p>\n

    When is the commission owed?<\/p>\n

    As the seller, the real estate commission<\/a> you owe will automatically be deducted from the sale proceeds at the time of closing. Until then, you won\u2019t owe any money to the real estate agent.<\/p>\n

    For buyers who have negotiated a commission with their agent, the Realtor fee will be paid as part of their final closing costs.<\/p>\n

    <\/div>\n

    Does the agent get to keep the full commission?<\/h2>\n

    In cases where the seller agrees to pay the entire commission, the listing agent<\/a> (representing the seller) doesn\u2019t keep it all. Part of their commission will go toward marketing your property<\/a> with professional photography, open houses<\/a>, offline marketing, and more.<\/p>\n

    In the traditional seller-funded commission scenario, there was typically a 50\/50 split with the buyer\u2019s agent<\/a> to compensate them for bringing a buyer to the sale and coordinating the buy-side of the transaction. So, around 2.5% to 3% would go to the listing agent, and the other 2.5% to 3% would go to the buyer\u2019s agent. Both the listing agent and the buyer\u2019s agent would then share a percentage of their commission with their sponsoring broker.<\/p>\n

    These split rates can vary; however, it\u2019s common for the listing agent to give their broker<\/a> anywhere from 20% to 50% of their portion of the commission, depending on the agent\u2019s level of experience, their market size, and the brokerage agreement.<\/p>\n

    Under the new NAR settlement rules, if you pay just your listing agent fees, that agent will still only be able to keep what’s left after covering their marketing expenses and whatever slice of the commission their brokerage office requires.<\/p>\n

    <\/div>\n

    How is the commission divided between agents?<\/h2>\n

    Under the old model, the commission that\u2019s paid by the seller<\/a> is split between each agent and the brokerages through which they hang their real estate license. Let\u2019s say you sell your home for $200,000 with a 6% commission rate. You pay a commission of $12,000, and each agent has a 70\/30 split agreement with their brokerage. Here\u2019s how that might look:<\/p>\n