When it comes to how much a realtor costs, a lot of buyers and sellers are still guessing. Commission structures shifted after the 2024 National Association of Realtors settlement, which means the old assumptions about “who pays what” no longer fully apply.
In this guide, we’ll break down what realtors charge for selling and buying a property, how those fees are calculated, whether they’re tax-deductible, and ways to reduce your costs. By the end, you’ll know exactly what to budget for and how to negotiate with confidence.
How Much Does a Realtor Cost on Average?
Realtor fees aren’t a flat rate; they’re calculated as a percentage of the final sale price, paid at closing rather than upfront. Nationally, the average total commission sits around 5–6%, though this varies by state, market conditions, and the agents involved.
Traditionally, this commission has been split roughly 50/50 between the listing agent (who represents the seller) and the buyer’s agent (who represents the buyer), though as you’ll see in the next section, this default is changing.
| Home Sale Price | Avg. Commission (5.5%) | Estimated Total Cost |
| $300,000 | 5.5% | $16,500 |
| $500,000 | 5.5% | $27,500 |
| $750,000 | 5.5% | $41,250 |
| $1,000,000 | 5.5% | $55,000 |
The 2024 NAR Settlement
If you last sold or bought a home before 2024, the rules around realtor fees have changed in ways that directly affect your costs.
The NAR settlement resolved antitrust litigation over how buyer-agent commissions were advertised and paid. Two changes matter most to your wallet:
Sellers are no longer required to offer buyer-agent compensation on the MLS. Previously, sellers routinely built the buyer’s agent fee into the listing. Now it’s optional and must be negotiated separately.
Buyers must sign a written buyer-broker agreement before touring homes. This agreement spells out exactly how much the buyer’s agent will be paid and by whom, meaning buyers may now need to pay their own agent’s commission directly if the seller doesn’t offer to cover it.
Sellers may see slightly lower costs if they choose not to offer buyer-agent compensation, while buyers should budget for the possibility of paying their agent’s fee out of pocket.
Realtor Fees for Home Sellers
Selling a home comes with more than just the sale price to consider; realtor commission is the highest cost in the transaction. Here’s what you’re paying for as a seller, and how those fees break down.
Listing Agent Commission
The listing agent’s fee covers:
- Comparative market analysis and pricing strategy
- Professional photography, staging advice, and marketing materials
- MLS listing and syndication to major real estate portals
- Hosting showings and open houses
- Negotiating offers and managing the contract-to-close process
Curious about the full process from listing to closing? Check out our step-by-step home selling guide.
Buyer’s Agent Commission
Post-settlement, sellers can still choose to offer compensation to a buyer’s agent as an incentive to attract more offers, but it’s no longer a default expectation baked into every listing. Some sellers negotiate this fee down or remove it.
What’s Included in the Commission
A full-service commission includes:
- Professional marketing and advertising spend
- Access to the MLS and major listing portals
- Skilled price and contract negotiation
- Coordination with inspectors, appraisers, and closing agents
- Ongoing communication and paperwork management through closing
Realtor Fees for Home Buyers
If a seller doesn’t offer to cover the buyer’s agent commission, that cost may fall to the buyer directly, as outlined in the buyer-broker agreement signed before touring homes. Ways to reduce this cost include:
- Asking whether the agent offers a flat fee instead of a percentage
- Requesting a commission rebate on higher-priced homes
- Negotiating a reduced rate for repeat clients or referrals
- Asking the seller, as part of your offer, to contribute toward your agent’s fee
For more information on whether you need a realtor to buy a home, check out our handy guide.
Realtor and Property Management Costs
If you’re renting out a property rather than selling one, “realtor cost” usually refers to leasing and property management fees rather than a sale commission.
| Fee Type | Cost | What’s Included |
| Tenant Placement / Leasing Fee | 50–100% of one month’s rent, or 8–12% of annual rent | One-time fee to find, screen, and place a qualified tenant |
| Monthly Property Management Fee | 8–12% of monthly rent | Rent collection, maintenance coordination, tenant communication |
| Full-Service Property Management | Combined leasing + management rate (varies by provider) | Tenant placement, ongoing management, inspections, legal compliance |
| Additional/Hidden Fees to Watch For | Varies by agreement | Lease renewal fees, maintenance markup fees, vacancy/advertising fees, eviction administration fees |
Are Realtor Fees Tax-Deductible?
For sellers: Commission isn’t a direct tax deduction, but it reduces your taxable capital gain by being added to your selling expenses (which offset your cost basis). This can meaningfully lower your tax bill on a profitable sale.
For landlords: Property management fees, leasing fees, and other realtor-related costs are generally fully deductible as a business expense on Schedule E.
How to Check a Realtor’s License and Credentials
Before signing with anyone, check:
- State real estate license: searchable through your state’s licensing board database
- Realtor® membership: only NAR members can legally use the trademarked term “Realtor”- check via NAR’s member directory
- Track record: ask for recent sales history and client references
- Errors and omissions insurance: this protects you if something goes wrong during the transaction
Tips to Reduce Your Realtor Costs
- Get quotes and interview at least 2–3 agents before choosing one
- Negotiate commission, especially in a seller’s market or on higher-value homes
- Ask about flat-fee MLS listing services
- Clarify exactly what’s included before signing a listing agreement
- Bundle services if you’re buying and selling at the same time
- Time your listing to avoid extended time-on-market costs
Get a Clear, Upfront Quote for Your Sale
Realtor costs can change depending on several factors. Understanding what you are paying for when it comes to buying or selling a house is important.
Our advice is to compare agents, ask questions about what’s included, and remember that the lowest fee isn’t always the best value.
If you’re ready to sell your home and want a clear, upfront breakdown of costs and what’s included, our team can walk you through your options and get you a personalized quote.
Frequently Asked Questions
Traditionally, the seller paid the full commission out of the sale proceeds. Since the 2024 NAR settlement, buyers may need to negotiate and pay their own agent’s fee separately if the seller doesn’t offer to cover it.
Yes. Commission rates are not fixed by law and are always negotiable between you and your agent.
All Realtors® are licensed real estate agents, but not all agents are Realtors®. The Realtor® title is trademarked and only used by members of the National Association of Realtors, who agree to a strict code of ethics.
You won’t owe a listing commission, but you may still need to pay a buyer’s agent fee if the buyer is represented, depending on your negotiation.
Yes, the realtor commission is deducted directly from sale proceeds at closing rather than paid separately upfront.
