The average real estate commission in 2026 runs 5% to 6% of the home’s sale price, split between the listing agent and the buyer’s agent. The exact national figure depends on the source and timing: Bankrate’s May 2026 commission data shows 5.7%, while surveys tracking late 2025 transactions report 5.46% to 5.57%. Both figures are defensible. For planning purposes, use 5.5% to 5.7% as your working range. On a $400,000 home, that’s $22,000 to $22,800 coming out of your sale proceeds.
Since August 2024, the structure of who pays has shifted. The old model, seller covers both agents automatically, no longer applies. Sellers now decide whether to offer buyer-agent compensation as a concession, while buyers sign written agreements with their agents upfront. The total cost hasn’t dropped much, but where it goes has changed.
This guide covers how the average is calculated (and why sources disagree), who pays in 2026, how commissions break down by state, whether 6% is still common, how agent splits work, what a 2% fee actually means, and how to reduce what you pay.
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The national average real estate commission is 5.5% to 5.7% of the home’s sale price, with the most current data point, per Bankrate’s May 2026 commission data, landing at 5.7%. That total is split roughly evenly between two agents, each earning 2.5% to 3%.
Commission comes out of sale proceeds at closing. You don’t write a separate check. The full amount is deducted before you receive your net proceeds.
Why sources show different numbers (5.46% vs. 5.7%)
You’ll see figures ranging from 5.46% to 5.7% depending on where you look. The gap reflects real methodological differences, not errors.
Bankrate’s May 2026 analysis reports 5.7% using current transaction data. Surveys tracking late 2025 closings report 5.46% to 5.57%, reflecting deals that were negotiated and closed a few months earlier. A market where rates are compressing slowly will produce different averages depending on the measurement window. Neither figure is wrong. The honest answer for a seller planning a 2026 sale: budget for 5.5% to 5.7% and treat 5% as the realistic floor if you negotiate well.
Forbes Advisor’s commission breakdown similarly reflects a 5% to 6% total range, consistent with the broader industry picture.
What that costs in real dollars
Here’s what the current range looks like across common sale prices, with a 5.7% column added to reflect the Bankrate May 2026 figure that dominates AI and media coverage:
| Home Sale Price | 5% Commission | 5.5% Commission | 5.7% Commission | 6% Commission |
|---|---|---|---|---|
| $250,000 | $12,500 | $13,750 | $14,250 | $15,000 |
| $300,000 | $15,000 | $16,500 | $17,100 | $18,000 |
| $400,000 | $20,000 | $22,000 | $22,800 | $24,000 |
| $500,000 | $25,000 | $27,500 | $28,500 | $30,000 |
| $750,000 | $37,500 | $41,250 | $42,750 | $45,000 |
| $1,000,000 | $50,000 | $55,000 | $57,000 | $60,000 |
Based on Bankrate May 2026 data and industry survey ranges. Verify current rates with local agents before listing.
For most sellers, commission is the largest single cost of selling, bigger than title insurance, transfer taxes, or any other line item.
Per-agent breakdown
The total commission divides between two sides. According to Bankrate’s May 2026 analysis, the current average split runs approximately 2.88% to the listing agent and 2.82% to the buyer’s agent (editor: verify these exact figures from the original Bankrate source before publishing). Each agent then splits their portion with their brokerage under a separate agreement.
The listing agent and buyer’s agent negotiate their own rates independently. Post-NAR-settlement, these two fees are no longer automatically bundled.
Who pays realtor fees in 2026?
The seller traditionally paid both agents’ fees from sale proceeds. After the August 2024 NAR settlement, that default no longer applies. The structure is now more negotiated, and more intentional.
Before August 2024: the traditional model
Historically, the seller paid the full commission (typically 5% to 6%) at closing, which was then split between the listing agent and the buyer’s agent. The buyer didn’t write a check, but they paid indirectly, the commission was factored into the home’s pricing and negotiation.
After August 2024: what the NAR settlement actually changed
The NAR settlement FAQ confirms two structural changes effective August 17, 2024:
- Buyer-agent compensation can no longer be advertised on MLS listings
- Buyers must sign a written agreement with their agent before touring homes, defining compensation upfront
These changes separate the buyer-agent fee from the seller’s automatic obligations. Sellers now choose whether to offer buyer-agent compensation as a concession, it is no longer a default term of the transaction. For details on what that written agreement contains, see the buyer broker agreement guide.
According to where real estate commissions stand one year after the new rules from CNBC’s August 2025 analysis, average commission rates have drifted only slightly lower despite the structural change, the new rules shifted transparency, not necessarily price.
What this means for sellers today
- You will pay your listing agent (2.5% to 3%, negotiable)
- You may still offer buyer-agent compensation as a concession (typically 2% to 2.5%)
- Whether to offer it is now a strategic decision, not a contractual default
- In competitive markets with strong buyer demand, you may not need to offer it
- In slower markets, offering buyer-agent compensation can attract more agent-represented buyers and speed your sale
What this means for buyers
- Buyers are now formally responsible for their own agent’s fee
- Buyers can negotiate for the seller to cover it as part of the purchase offer
- The buyer-broker agreement must be signed before touring homes, terms and fees vary by agent
Average realtor commission rates by state
Commission rates vary by state based on local market norms, price levels, and competition among agents. The table below shows representative state averages. These figures are drawn from Bankrate’s state-level commission tracking; verify current figures with local agents before listing.
| State | Estimated Average Total Commission | Notes |
|---|---|---|
| Iowa | ~6.0% | Among the higher-average Midwest markets |
| Indiana | ~5.9% to 6.0% | Above national average |
| Missouri | ~5.8% to 6.0% | Midwest market, rates holding near 6% |
| Ohio | ~5.7% to 5.9% | Near national average |
| Texas | ~5.6% to 5.8% | Large market, moderate rates |
| Florida | ~5.3% to 5.5% | Below national average per survey data |
| Colorado | ~5.5% to 5.7% | Near national average |
| California | ~5.0% to 5.3% | Below national average |
| Washington | ~5.2% to 5.5% | Competitive market |
| New York | ~4.5% to 5.0% | Among the lowest nationally |
State figures are indicative ranges based on available survey data; editor should verify each row against a named primary source with a stated date before publishing. Rows without verified sourcing should be marked for review.
For a detailed look at commission norms in the Denver metro, a Western market with its own rate dynamics, see the average real estate commission in Denver. For Wyoming, one of the lower-cost states for sellers, see what sellers pay in Wyoming.
States with the highest average commissions
Midwestern and rural markets tend to run highest, often near or at 6%. In lower-price markets, agents may hold rates higher because the absolute dollar value of a smaller percentage doesn’t justify their time and costs.
States with the lowest average commissions
New York and California consistently show lower-than-average rates. In high-price markets, a smaller percentage still produces substantial agent income, giving sellers more negotiating leverage.
Why rates vary by state
- Home price levels, higher-priced states see lower percentages because absolute dollar commissions are larger
- Market competition, more agent competition in active markets can push rates down
- Local customs, some states have historically accepted 6% as standard; others have always negotiated lower
- Urban vs. rural, metro areas tend to have more competition and lower rates than rural markets
Do realtors still charge 6%?
No, the traditional 6% commission is no longer the national average. The current national range is 5% to 6%, with most transactions landing around 5.5% to 5.7% per Bankrate’s May 2026 data.
Kiplinger’s analysis of why commission costs haven’t fallen after the NAR settlement explains that while the settlement changed disclosure rules, it hasn’t dramatically compressed rates in most markets. Structural change happened; price change has been modest.
Where 6% is still common
Some markets still treat 6% as the de facto standard. These tend to be:
- Midwestern metros with lower home prices (where agents need the full 6% to make the deal economically viable)
- Rural markets with less agent competition
- Lower-priced homes where a smaller percentage produces too little for agents to accept a reduced rate
What has replaced it
Nationally, the center of gravity has shifted to 5.5% to 5.7%. The per-agent side has compressed from a firm 3% toward a negotiated 2.5% to 3% range. In higher-priced markets and on homes above $750,000, listing-side rates of 2% to 2.5% are increasingly achievable.
Is 3% commission a lot for one agent?
A 3% per-side commission is at the high end of the normal range, not excessive, but above the current average of approximately 2.82% to 2.88% per side per Bankrate’s May 2026 analysis. On a $400,000 home, 3% to the listing agent equals $12,000 before the brokerage split. Sellers in higher-priced markets can often negotiate this toward 2% to 2.5%.
How commission gets split between agents
The total commission doesn’t flow directly to the agents. It passes through brokerages first, with each agent splitting their portion under a separate brokerage agreement.
The listing agent and buyer’s agent split
The seller pays the total commission (or the listing-agent portion, post-settlement). That total is divided between the two sides. Each agent then has a separate agreement with their brokerage, under which the brokerage takes a portion of the agent’s gross commission. A 70/30 split, agent keeps 70%, brokerage keeps 30%, is one common model, though terms vary widely. More experienced agents often negotiate better splits with their brokerages. (Editor: verify a primary source for typical brokerage split ranges before publishing; the 70/30 figure is widely cited but verify from a named source.)
What the agent actually takes home
Using the Bankrate May 2026 figures as a framework (verify before publishing):
| Home Price | Total at 5.7% | Each Agent’s Gross (2.85% each) | Agent’s Net at 70/30 Split |
|---|---|---|---|
| $300,000 | $17,100 | $8,550 | ~$5,985 |
| $400,000 | $22,800 | $11,400 | ~$7,980 |
| $500,000 | $28,500 | $14,250 | ~$9,975 |
| $750,000 | $42,750 | $21,375 | ~$14,963 |
| $1,000,000 | $57,000 | $28,500 | ~$19,950 |
Illustrative only. Actual brokerage splits vary by agent agreement and brokerage tier. Editor: verify brokerage split figure from a named primary source.
These numbers explain why agents resist rate cuts on lower-priced homes. After brokerage splits, marketing costs, and business expenses, the agent’s take-home on a $300,000 sale at 2.85% is roughly $4,000 to $6,000, before taxes and self-employment costs.
Dual agency and its implications
Dual agency occurs when one agent represents both the buyer and the seller in the same transaction. The agent typically accepts a reduced total commission (often 4% to 5%) since they’re earning both sides, but the arrangement raises conflict-of-interest questions. The agent cannot advocate fully for either party. Some states restrict or require additional disclosure for dual agency. Approach it carefully if offered.
Is 2% a good realtor fee?
A 2% listing fee is below the national average and saves sellers roughly $3,500 to $4,000 in listing-agent costs on a $400,000 home, compared to the approximately 2.88% national average listing-agent rate. But it covers only one side of the transaction.
After the NAR settlement, a 2% listing fee doesn’t represent your total commission cost. You’ll still face a separate decision about buyer-agent compensation (typically 2% to 2.5%), which most sellers continue to offer as a concession. Your all-in commission cost on a $400,000 home with a 2% listing fee and 2.5% buyer concession is still 4.5%, or $18,000.
What a 2% listing fee actually covers
A 2% listing fee pays the agent who lists your home, manages showings, and negotiates on your behalf. It does not cover the buyer’s agent. Post-settlement, the buyer’s agent fee is negotiated separately between the buyer and their agent, though sellers commonly offer it as a concession to attract agent-represented buyers.
Some buyers negotiate home buyer rebates from their agents, which can reduce the effective commission cost on the buyer’s side of the transaction.
Who offers 2% listing commissions
- Discount brokerages (Redfin at 1% to 1.5% under certain conditions, Clever at varying rates)
- Some traditional agents on homes priced above $600,000 to $700,000, where 2% still produces substantial income
- Flat-fee hybrid services with limited service tiers
Minimum fees often apply even at reduced percentage rates. A 1.5% listing on a $200,000 home may trigger a minimum fee of $3,000 to $4,000 regardless of the quoted percentage.
How to save on realtor commission
Realtor commission is fully negotiable. There is no law or industry rule setting commission at any fixed rate. These six approaches work in 2026:
Negotiate with your listing agent
Interview three to five agents, collect written commission proposals, and present competing proposals to each. Agents expect negotiation, especially on higher-priced homes where even 2% produces strong income. Many will move from 3% toward 2% to 2.5% if you ask with a competing offer in hand.
Use a discount brokerage
Discount brokerages charge 1% to 1.5% on the listing side, providing MLS access and varying levels of agent support. Minimum fees typically apply. The savings on a $400,000 sale versus a traditional 3% listing fee: $6,000 to $8,000 on the listing side alone.
Use a flat-fee MLS service
Flat-fee services list your home on the MLS for a one-time payment of $300 to $3,000. You handle showings, negotiation, and paperwork. For experienced sellers in active markets, this captures most of the MLS benefit at a fraction of the cost. Per how buyer-agent fee negotiation works post-settlement from Rocket Mortgage, buyers and their agents are increasingly comfortable with FSBO-listed homes in the post-settlement environment.
Sell without a realtor (FSBO)
For Sale By Owner eliminates the listing-agent fee entirely. The tradeoff: you manage pricing, marketing, showings, negotiations, and paperwork yourself. Research consistently shows FSBO homes sell for less than agent-listed homes on average, though the gap varies widely by market and seller experience. The For Sale By Owner statistics page covers the data behind this tradeoff in detail.
Decide strategically on buyer-agent compensation
Post-settlement, offering buyer-agent compensation is your choice. In hot markets with multiple competing buyers, skipping it may cost nothing. In slower markets, offering 2% to 2.5% can meaningfully expand your buyer pool. Run the math for your specific market before defaulting to either option.
Consider a cash buyer
Cash buyers and iBuyer-style services skip commission entirely. The offer is typically below traditional retail, but after accounting for commission savings (5% to 6%), holding costs avoided (mortgage, taxes, insurance, utilities during a 60 to 90-day listing), and the certainty premium, the net gap is often smaller than the headline price difference suggests.
Cost comparison on a $400,000 sale (illustrative):
| Option | Listing-side cost | Approximate net to seller* |
|---|---|---|
| Traditional listing (5.7% total) | $22,800 | ~$361,200 |
| Listing-side only (2.88%, post-NAR) | $11,520 | ~$372,480 |
| Discount broker (1.5% listing) | $6,000 | ~$378,000, $386,000 |
| Flat-fee MLS service | $500, $3,000 | ~$381,000, $393,500 |
| FSBO (no listing fee) | $0 | ~$365,000, $393,000 |
| Cash buyer / iBuyer | $0 | ~$340,000, $372,000 |
Net estimates assume approximately 2% to 3% in non-commission closing costs and standard market conditions. FSBO range is wide because outcomes vary significantly by market and seller experience. Cash-buyer range does not account for holding costs avoided by closing in 7 to 14 days rather than 60 to 90. Actual figures vary.
The FSBO floor is below a traditional listing because inexperienced sellers in normal markets often underprices or accept weaker terms. The ceiling is comparable to flat-fee MLS in active markets where the home sells quickly.
Skip the Commission Entirely
Realtor fees in 2026 still average 5% to 6% of your sale price. On a $400,000 home, that’s $20,000 to $24,000 before you account for other closing costs. iBuyer.com connects you with vetted cash buyers who skip the commission entirely. No listing agent, no buyer-agent concession decision, no months of carrying costs. You compare competing cash offers and choose your closing date. Get a free, no-obligation offer in 24 to 48 hours and see what your net proceeds look like without commission in the equation.
Skip the 5%–6% Commission Compare cash offers from vetted buyers — no listing agent required.
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Frequently Asked Questions
The average real estate commission in 2026 is approximately 5.5% to 5.7% of the home’s sale price, split between the listing agent and the buyer’s agent. Bankrate’s May 2026 data shows 5.7% as the current national average, while surveys tracking late 2025 transactions report 5.46% to 5.57%. On a $400,000 home, the total commission ranges from $22,000 to $22,800 at those rates.
Most realtors charge 2.5% to 3% per side, for a total of 5% to 6% of the home’s sale price. The listing agent and buyer’s agent each negotiate their own rate. Bankrate’s May 2026 analysis reports an average of approximately 2.88% to the listing agent and 2.82% to the buyer’s agent (editor: verify exact figures from original Bankrate source).
No, the traditional 6% commission is no longer the national average; the current range is 5% to 6%, with most transactions landing around 5.5% to 5.7%. Some Midwestern and rural markets still see 6% as a de facto standard, particularly on lower-priced homes where a smaller percentage doesn’t produce enough agent income.
A 3% per-side commission is at the high end of the normal range but not excessive, it is slightly above the current average of approximately 2.82% to 2.88% per side. On a $400,000 home, 3% to the listing agent equals $12,000 before the brokerage split. Sellers on higher-priced homes can often negotiate toward 2% to 2.5%.
A 2% listing fee is below the national average and saves sellers roughly $3,500 to $4,000 in listing-agent costs on a $400,000 home, but it covers only one side of the transaction. You’ll still face a separate buyer-agent fee decision (typically 2% to 2.5%), making your all-in commission cost higher than 2% alone.
The seller traditionally pays both agents’ fees, but after the August 2024 NAR settlement, buyers are now formally responsible for their own agent’s fee, though sellers can still offer it as a concession. In practice, many sellers continue to offer buyer-agent compensation (2% to 2.5%) to attract agent-represented buyers.
Realtor fees on a $400,000 house typically total $20,000 to $24,000 at a 5% to 6% combined commission rate. Post-NAR-settlement, sellers may pay only the listing agent’s portion ($10,000 to $12,000 at 2.5% to 3%), with the buyer’s agent fee negotiated separately.
Yes, realtor fees are fully negotiable; there is no law or industry rule that sets commission at any fixed percentage. Sellers who interview multiple agents, present competing proposals, or list higher-priced homes have the strongest negotiating position, with listing-side rates of 2% to 2.5% achievable in most markets.
The 2024 NAR settlement changed how commissions are disclosed and negotiated, but it has not materially lowered average rates in most markets. Per Kiplinger’s post-settlement analysis, rates have drifted slightly lower but remain in the 5.5% to 5.7% range nationally.
Total seller closing costs typically run 8% to 10% of the sale price, including commission plus title insurance, transfer taxes, attorney fees, and escrow fees. On a $400,000 sale, expect $32,000 to $40,000 in total costs. Commission is the largest single line item.
Yes, sellers can use For Sale By Owner (FSBO), a flat-fee MLS service, or a cash-buyer service to avoid paying a listing agent. FSBO eliminates the listing-agent fee but requires handling all marketing, showings, and negotiations yourself, and research consistently shows FSBO homes sell for less than agent-listed homes on average.
A flat-fee MLS service lists your home on the Multiple Listing Service for a one-time payment (typically $300 to $3,000) instead of a percentage commission. You retain responsibility for showings, negotiation, and paperwork, but gain the same MLS visibility as a traditional listing at a fraction of the cost.
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Reilly Dzurick is a licensed real estate agent with over six years of experience and a member of the iBuyer.com Market Insights Team, covering national trends in home selling and the evolving iBuyer landscape. Her firsthand experience working with buyers and sellers gives her a practical perspective on how these platforms impact real homeowners. She holds a degree in Public Relations, Advertising, and Applied Communication.
