- The national average real estate commission in 2026 is 5.70%, split between the listing agent (2.88%) and the buyer's agent (2.82%), according to Clever Real Estate's 2026 agent survey
- On a median-priced U.S. home of around $368,000, that works out to roughly $21,000 in total agent fees
- Rates are not fixed — they range from 4.50% in Washington D.C. to 6.20% in Michigan depending on location, home value, and market conditions
- The 2024 NAR settlement changed the rules — sellers are no longer required to offer buyer's agent compensation through the MLS, and who pays what is now negotiated upfront
- Commission is negotiable — high-value properties, hot markets, existing buyers, and repeat business are all leverage points
- Using a DSCR loan, running fix-and-flip projects, or growing a rental portfolio? Commission is a real line item in your deal math and needs to be factored in from day one
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Real estate agent commission is one of those costs people know exists but rarely dig into until they’re standing at the closing table, watching a chunk of their sale proceeds disappear. If you’re selling an investment property or a primary residence, it’s worth understanding exactly what you’re paying, who gets it, and whether any of it is negotiable.
The short answer: the national average commission in 2026 is around 5.70%, split between the listing agent and the buyer’s agent. But that number hides a lot of variation. Depending on where you live, what your home is worth, and how you approach the negotiation, your actual cost could look quite different.
What Is The Average Real Estate Commission Percentage?
The nationwide average real estate commission is 5.70% of the sale price, according to a 2026 survey of active agents across the U.S. by Clever Real Estate. That figure splits roughly down the middle: 2.88% to the listing agent (representing the seller) and 2.82% to the buyer’s agent.
On a median-priced U.S. home of around $368,000, that works out to roughly $21,000 in total agent fees.
The old “6% standard” is largely a relic. It was the norm for decades, but competition, discount brokerages, and the growth of online listings have pushed rates down over time. Rates nudged back up slightly after a post-settlement dip, but we’re not back at 6% across the board.
Rates range from as low as 4.50% in Washington D.C. to as high as 6.20% in Michigan, so where you’re selling matters more than most people expect.
How Does The Commission Get Split?
The commission doesn’t just go to one person. Here’s how it typically flows.
The seller pays the total commission out of the sale proceeds at closing. That full amount goes to the listing brokerage first. The listing brokerage then pays the listing agent their share and also pays the buyer’s brokerage. The buyer’s brokerage then pays the buyer’s agent.
So when you see 5.70%, four parties are typically sharing it: two agents and their respective brokerages.
A concrete example: on a $400,000 home at 5.7% commission, the total is $22,800. Split evenly, each side receives $11,400. Each agent then shares that with their brokerage, so the individual agent might walk away with $6,000 to $9,000 depending on their split arrangement.
Commission By Home Price: What It Actually Costs
| Home Sale Price | 5% Commission | 5.7% Commission | 6% Commission | Per Agent (5.7%, 50/50) |
|---|---|---|---|---|
| $200,000 | $10,000 | $11,400 | $12,000 | $5,700 |
| $350,000 | $17,500 | $19,950 | $21,000 | $9,975 |
| $500,000 | $25,000 | $28,500 | $30,000 | $14,250 |
| $750,000 | $37,500 | $42,750 | $45,000 | $21,375 |
| $1,000,000 | $50,000 | $57,000 | $60,000 | $28,500 |
Commission Rates By Region
Rates vary more by location than most sellers expect. High-value markets like California and New York tend to run lower on a percentage basis because even a smaller rate generates a large dollar amount. Midwest and Southeast states often run higher.
One consistent pattern: states with lower median home values tend to have higher commission rates. Agents in markets where homes sell for $150,000 need a higher percentage to earn a comparable dollar amount to an agent in a market where homes sell for $800,000.
| Region | Avg. Total Commission | Notable High | Notable Low |
|---|---|---|---|
| Northeast | 5.56% | Pennsylvania 5.77% | New Jersey 5.20% |
| Southeast | 5.60% | Tennessee 6.05% | Washington D.C. 4.50% |
| Midwest | 5.83% | Michigan 6.20% | Indiana 5.50% |
| Southwest | 5.84% | Texas 5.88% | Arizona 5.82% |
| Rocky Mountains | 5.65% | Colorado 5.71% | Nevada 5.71% |
| Pacific | 5.65% | Washington 5.90% | California 5.47% |
Who Pays The Commission?
This changed in 2024. Under the old model, sellers paid both their own agent and the buyer’s agent automatically. That was the standard for decades.
After the National Association of Realtors settled a major antitrust lawsuit in 2024 and agreed to pay $418 million, the rules shifted. Sellers no longer have to offer buyer’s agent compensation through the MLS. Instead, who pays what is negotiated upfront and spelled out in writing before any agent provides services.
In practice, many sellers still offer buyer’s agent compensation because it widens the buyer pool and makes the listing more attractive. But it’s no longer automatic, and it’s worth discussing with your agent before you list.
Full Commission vs. Discount Agent
Full Commission vs. Discount Agent
What you gain and give up at each price point
Full-Service Agent (2.5–3%)
Full MLS listing exposure
Listing gets pushed to Zillow, Redfin, Realtor.com and syndication networks
Professional photography
Most full-service agents coordinate or cover professional listing photos
Negotiation support
Experienced agents often recover their fee through higher offers and better terms
End-to-end transaction management
From listing prep through closing, the agent handles logistics and any issues that come up
Discount / Low-Commission (1–1.5%)
Lower listing fee
Typically 1–1.5% vs. 2.5–3%, saving $4,000–$6,000+ on a $400k home
Fewer included services
Photography, open houses, and staging may not be included at lower rates
Volume-focused approach
Discount agents carry more listings to offset lower rates; attention per client varies
Best for simpler sales
Hot markets, move-in ready homes, or sellers with prior transaction experience
What Do Real Estate Agents Do For That Commission?
The listing agent typically handles the initial walkthrough and pricing strategy, professional photography and listing creation, MLS submission and syndication, marketing to buyer’s agents, open houses and showings, offer review and negotiation, and transaction coordination through to closing.
The buyer’s agent searches listings, runs comparative market analyses, organizes viewings, advises on offer strategy, negotiates on the buyer’s behalf, and manages the transaction through inspections, appraisals, and closing.
That’s a lot of work, even if most of it happens in the background. Whether it’s worth the fee depends on your specific situation, which is exactly why negotiation exists.
Can You Negotiate Real Estate Commission?
Yes. Commission rates are not fixed by law. The NAR settlement in 2024 reinforced this by banning compensation offers from being listed on the MLS and requiring written buyer agreements upfront.
A few situations where negotiation tends to work in your favor:
High-value property. On a $900,000 home, even 1.5% listing commission is $13,500. Most agents will accept a lower rate on a high-value sale because the dollar amount is still significant.
You already have a buyer. If you’ve found a buyer independently, the agent’s job is simpler. That’s a reasonable basis for asking for a reduced rate.
You’re offering repeat or referral business. If you’re a real estate investor running multiple transactions, that relationship has value to an agent. If you’re using DSCR loans to build a rental portfolio, exit costs like commission need to be in your numbers from the start.
In a hot seller’s market. When demand is high and properties move fast, some agents will accept less because the workload is lighter.
One important note: lowering the commission often means fewer services. Make sure you know exactly what’s being cut before you sign anything.
Options For Paying Less Commission
Work with a discount brokerage
Low-commission brokerages pre-negotiate lower listing rates, often around 1.0–1.5%. You still get an agent, but service levels vary by provider.
Sell by owner (FSBO)
You can sell without an agent and skip the listing commission entirely. The trade-offs are real, though. According to the NAR Profile of Home Buyers and Sellers, FSBO homes consistently sell for less than agent-listed properties. For most sellers, especially investors with significant assets to protect, the risk rarely justifies the savings.
Flat-fee MLS services
Some brokerages charge a few hundred dollars to list your home on the MLS and you handle everything else. This gives you MLS exposure without full-service costs, though you’re still likely offering a buyer’s agent commission to attract buyers.
Recent Trends Worth Knowing
Buyer’s agent commissions dropped between 2021 and 2024, falling from around 2.70% to 2.58%. They’ve since recovered. By early 2026, Clever Real Estate’s agent survey found buyer’s agent commission back up to 2.82%.
The NAR rule changes haven’t eliminated buyer’s agent fees. They’ve made the negotiation more explicit. Most sellers are still offering compensation to attract buyer representation.
If you’re buying or selling an investment property, commission is a real line item in your deal math. New Silver’s real estate calculators can help you factor it in before you list or acquire. If you want to understand how returns look across a full investment cycle, the guide on how to calculate ROI on rental property covers the full picture. And if you’re running fix-and-flip projects, the back-end sale commission needs to be in your numbers from day one.
Dual Agency: What To Know
Dual agency is when one agent represents both buyer and seller in the same transaction. In theory this could mean a lower total commission. In practice it creates a conflict of interest that most experienced real estate attorneys advise against.
Some states have banned dual agency outright, including Colorado and Oklahoma. Where it is legal, the agent still carries fiduciary obligations to both parties. If your listing agent brings a buyer, consider asking for a different agent from their office to handle the buyer’s side.
FAQ
The national average is 5.70% total, split between the listing agent (2.88%) and the buyer’s agent (2.82%), according to Clever Real Estate’s 2026 agent survey. Rates range from about 4.50% to 6.20% depending on location.
Historically the seller paid both sides. Since the 2024 NAR settlement, this is negotiated upfront and written into the buyer’s agent agreement before any services are provided. Sellers often still offer buyer’s agent compensation, but it’s no longer required to appear on the MLS.
Yes. Commissions are not set by law. High-value homes, hot markets, repeat business, and existing buyers are all reasonable leverage points for negotiating a lower rate.
For most standard residential sales, somewhere in the 5–5.7% range is in line with current market norms. Lower is achievable in the right circumstances without necessarily sacrificing service quality.
The same mechanics apply, though investors often have more negotiating leverage due to repeat business. Whether you’re running fix-and-flip projects with hard money loans or growing a rental portfolio, factor commission into your numbers upfront. New to real estate investing? The real estate investing for beginners guides on New Silver are a good starting point.
Bottom Line
Real estate commission is negotiable, more variable than people assume, and increasingly something sellers scrutinize closely. The national average sits at 5.70% in 2026. Whether that’s fair for your sale depends on your market, your home’s value, and what services you actually need.
For investors, the cumulative cost of commissions across a portfolio is a meaningful number. Understanding the landscape and knowing when to push back is part of running tighter deals.
