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What is the Average Commission for Realtors?

What Is the Average Realtor Commission? (2022 Data)

National average realtor commission | Can you negotiate realtor fees? | Average realtor commission by state | Who pays realtor commission? | Buyer’s agent commission | How to save on commission

💰 What is the average realtor commission fee? 💰

The average realtor commission is 5.49% of a home’s final sale price. That’s split between the seller’s agent and the buyer’s agent. For a home sold at the national median sale price of $431,000, the combined realtor commission would be around $23,000.

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On average, realtor commission is 5.49% nationwide, although the average realtor commission rate varies by state. 

Realtor commission is the single largest transaction cost for most home sellers — but many sellers don’t know how commission is calculated, what services the commission is paying for, or even how much commission is.

In fact, a study by Clever Real Estate involving 1,000 U.S. homeowners who sold properties in 2022 and 2023, found that over half of them (54%) either estimated the average realtor commission incorrectly or were unsure about it. [1]

Interestingly, the same study revealed that home sellers who used a real estate agent made, on average, close to $50,000 more in profit than those who didn’t use an agent, highlighting the potential financial benefits of professional guidance. 

Realtor commissions are also completely negotiable. Regardless of your location, these fees are not fixed or regulated. Home sellers are not obliged to pay a predetermined percentage of their sales price as commission.

While the average nationwide realtor commission is 5.49%, HomeBay and Clever Real Estate offer a cost-effective alternative. Choose Clever agents for a significantly lower listing commission of just 1.5%, enabling you to save money while still receiving expert real estate advice.

👋Ready to save on commission? Connect with top Clever Real Estate agents

What Is the Average Realtor Commission in the U.S.?

In a recent research study conducted by Clever Real Estate, it was revealed that the typical real estate agent commission in the United States stands at 5.49%. This commission is typically divided between the listing agent and the buyer’s agent, and paid by the seller at closing. 

This translates to a total realtor commission cost of just over $23,000 on a $431,000 home (the nationwide median price for homes sold.) [2]

The study conducted by Clever found that listing agents generally receive commissions ranging from 1% to 4%, with an average commission rate of 2.83%. On the other hand, buyer’s agents typically fall within the same range, but earn a slightly lower average commission rate of 2.66%. 

The research also unveiled substantial variations in real estate commission rates, with differences of up to 0.88 percentage points observed between states. This means that the amount you pay in commission can significantly differ, depending on your state.

Average Realtor Commissions by State

Below is a table showing the average realtor commission rates by state, along with the total commission paid, rounded to the nearest dollar. These figures are calculated based on the average home sale prices in each state, as reported by Zillow. The table is organized alphabetically for easy reference.

Can You Negotiate Real Estate Commission Rates?

Real estate commission rates are negotiable, but individual sellers often find it challenging to negotiate effectively, especially when agents are part of brokerages that take a cut from their commissions. 

While many agents stick to the traditional 5-6% model due to their reliance on commission-based income, Clever Real Estate offers a unique solution. Clever negotiates lower rates on behalf of sellers, pairing them with top-rated agents for a reduced listing fee of just 1.5%, potentially saving sellers around $7,000 on average.

Save BIG with Clever!
Our friends at Clever negotiate discounted fees with top agents in your area so you can focus on selling your home for top dollar.
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Who Pays Realtor Commission?

In a typical real estate transaction, the home seller is responsible for paying all realtor commission fees. The commission is shared between the listing agent, who assists the seller, and the buyer’s agent, who aids the buyer. 

In scenarios of dual agency, one agent represents both parties. The payment dynamics differ based on whether both parties have agents, only one party has an agent, or neither party has an agent. 

Use the table below to easily identify how real estate agent commission works in a variety of circumstances:

Who has a real estate agent? Who pays commission? Who receives commission?
Both the buyer and seller Seller Listing agent and buyer’s agent split the total commission
Only the seller Seller Listing agent receives entire commission
Only the buyer Seller Buyer’s agent
Neither No one No one
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Why Should Sellers Pay Buyer’s Agent Commission?

Home sellers typically offer a commission to the buyer’s agent as an incentive for bringing clients to view their homes. This commission is vital for buyer’s agents since it’s often their only payment, as they are not compensated directly by the buyer. 

Consequently, buyer’s agents are financially motivated to direct clients towards homes offering commissions. However, this practice is currently subject to significant debate and legal scrutiny, questioning its fairness and impact on the real estate market.

Realtor commission changes may be coming 

Recent legal actions against the National Association of Realtors (NAR) and major real estate companies could lead to major changes in how realtor commissions are structured. 

In November 2023, NAR, HomeServices of America, and Keller Williams Realty faced a lawsuit alleging that they unfairly burden sellers with high commissions, including those for the buyer’s agents. [3]

In December, these entities sought to dismiss another class-action lawsuit claiming they artificially inflated commission fees, demanding over $13 billion in damages. [4]

Re/Max and Anywhere Real Estate have already settled claims similar to those faced by other major realty companies. With a key hearing in the Illinois case scheduled for 2024, these legal developments have the potential to significantly alter real estate commission rates. We’ll continue to provide updates on these changes.

Are Sellers Required to Work With a Real Estate Agent?

Home sellers are not required to work with a real estate agent — but for many, the benefits of working with an agent are worth paying commission fees.

The trend towards For Sale By Owner (FSBO) is declining, with only 7% of recent home sales being FSBO, equaling the low seen in 2021. 

Most sellers who successfully sell their FSBO have experience with the many nuts and bolts of the real estate process. Not only that, but more than half (57%) already know their buyer. 

FSBO homes, however, often sell for less (median of $310,000) compared to agent-assisted sales (median of $405,000). Additionally, a significant number of FSBO sellers (36%) encounter legal issues due to lack of professional assistance.[5]

The bottom line: While sellers are not obligated to use a real estate agent, many prefer it and benefit from it due to the advantages they offer, including potentially higher sale prices and legal expertise. 

Don’t overspend on realtor commission

Although total realtor fees typically add up to 5.49% of your home’s sale price, recent disruptions in the real estate industry suggest that the days of standard commission rates may be fading fast.

If you’re looking for a real estate agent, our friends at Clever Real Estate have built a network of pre-vetted partner agents. You can meet as many agents as you like until you find the best match, receive full service, AND pay just 1.5% in listing fees.

Match With Top Agents, Save Thousands
Our friends at Clever connect you with top-rated agents in your area who can sell your home fast AND offer low listing fees of just 1.5%. The average seller who lists with Clever saves $7,000!
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How much does a real estate agent make?

Real estate agents earn a commission which is a percentage of the home’s sale price, typically averaging around 5.49% nationwide, but ranging from 5-6%. This amount is split between the seller’s and buyer’s agents.

Who pays realtor commission?

In a standard real estate transaction, the home seller pays the realtor commission fees. The fee is shared between the listing and the buyer’s agent, varying based on whether both parties have agents, only one has, or neither has an agent.


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