Illinois real estate commission averages roughly 4.90% to 5.56% of the home’s sale price, split between the listing agent and the buyer’s agent. On a $300,000 sale, that total comes to roughly $14,700 to $16,680 out of seller proceeds at closing. Rates are set by agreement, not state law, so every number is negotiable.
This guide covers how commission works in Illinois, current rates and dollar amounts by price point, what changed after the August 2024 NAR settlement, who pays what and when, how much agents actually earn, and your options for reducing or skipping the fee entirely.
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How Real Estate Commission Works in Illinois
What is a real estate commission?
A real estate commission is a percentage of the final sale price paid to the agents involved in a transaction. Historically the benchmark was 6% of a home’s price, but Illinois averages have moved lower since the 2024 NAR settlement. The fee is agreed upon in a listing contract before the property goes on the market and is deducted from the seller’s proceeds at closing, not paid upfront.
The commission covers the full scope of work both agents perform: pricing analysis, marketing, showings, offer negotiation, contract management, and coordination through closing.
How the commission is split between agents
The total commission is divided between two agents: the listing agent (who represents the seller) and the buyer’s agent (who represents the buyer). Each agent then splits their share with their brokerage under a pre-arranged agreement.
A simplified example at 5% on a $300,000 sale:
- Total commission: $15,000
- Listing agent side: $7,500 (before brokerage split)
- Buyer’s agent side: $7,500 (before brokerage split)
Common brokerage splits range from 50/50 to 80/20 in favor of the agent, so each individual agent’s take-home is lower than their gross side.
Who pays the real estate commission in Illinois?
Before August 17, 2024, Illinois sellers paid both the listing-side and buyer-side commission from their sale proceeds, with the buyer-agent fee offered through the MLS as a condition of listing. After August 17, 2024, that model changed. Buyers must now sign a written buyer-broker agreement specifying their agent’s fee before touring homes, making them the contractual payer of their agent’s compensation. Sellers may still offer to cover that fee as a concession, but they are no longer required to do so, per NAR settlement facts for buyers and sellers.
In practice, the commission is still deducted from seller proceeds at closing in most Illinois transactions. The legal responsibility has shifted, but many sellers continue to cover both sides through concessions to attract more offers.
Average Real Estate Commission in Illinois
Current Illinois commission rates
According to a 2026 Illinois commission survey (dated September 2026), the average total realtor commission in Illinois is 4.90%, below the national average of 5.46% it reports for the same period. A broader range of 4.90% to 5.56% appears across multiple market sources covering Illinois.
Illinois rates are lower than the national midpoint. Factors that push rates toward the lower end include higher-priced homes, competitive Chicago-area markets, and sellers who negotiate directly with agents before signing a listing agreement.
Commission dollar amounts by home price
The table below uses an illustrative midpoint of 5% total commission (split evenly at 2.5% per side) to show dollar amounts at common Illinois sale prices. Verify the current rate with your agent before relying on these figures for financial planning.
| Home sale price | Total at 5% | Listing side (2.5%) | Buyer side (2.5%) |
|---|---|---|---|
| $200,000 | $10,000 | $5,000 | $5,000 |
| $300,000 | $15,000 | $7,500 | $7,500 |
| $400,000 | $20,000 | $10,000 | $10,000 |
| $500,000 | $25,000 | $12,500 | $12,500 |
| $600,000 | $30,000 | $15,000 | $15,000 |
Illustrative calculations at 5% total. Actual rates in Illinois range from roughly 4.90% to 5.56% depending on the agent, market, and negotiation. Verify current figures before transacting.
What Changed After the NAR Settlement in Illinois
The old commission model (pre-August 2024)
Before August 17, 2024, sellers in Illinois were required to offer buyer-agent compensation through the MLS as a standard condition of listing. That offer was bundled into the seller’s total cost and rarely disclosed separately to buyers. The buyer’s agent fee was effectively invisible to the buyer, folded into the transaction without a separate negotiation.
What changed on August 17, 2024
The National Association of Realtors reached a $418 million settlement in March 2024, with new rules taking effect August 17, 2024. Two core changes apply directly to Illinois buyers and sellers:
- MLS commission offers are prohibited. Sellers can no longer advertise buyer-agent compensation through MLS listings.
- Written buyer-broker agreements are required. Buyers must sign an agreement specifying their agent’s compensation before touring any home.
As one year after the new commission rules took effect CNBC reported in August 2025, “the traditional model is still what’s playing out”, sellers continue to offer concessions that cover the buyer’s agent fee in most markets.
How Illinois buyers and sellers are affected now
| Before August 17, 2024 | After August 17, 2024 | |
|---|---|---|
| Who paid buyer’s agent? | Seller (via MLS offer) | Buyer (contractually); seller may offer concession |
| MLS commission offers | Required | Prohibited |
| Buyer-broker agreement | Optional | Required before touring |
| Commission negotiability | Existed but rarely disclosed | Required to be disclosed and negotiated upfront |
Based on NAR settlement terms and CNBC reporting (August 2025). Verify Illinois-specific statutory requirements via Illinois REALTORS or IDFPR before advising clients.
Who Pays Realtor Fees in Illinois?
Seller-paid commission: how it works at closing
In most Illinois sales, the seller pays both the listing-side and buyer-side commission from proceeds at closing. The Illinois REALTORS guidance on commission agreements confirms that commission is a negotiated term of the listing contract, not a statutory fee. It is deducted from the seller’s net proceeds at settlement, which means sellers do not write a check upfront. See the full transaction through closing process for context on how commission fits into closing costs.
Buyer-paid commission: when and how it applies
Since August 17, 2024, buyers who work with an agent sign a written buyer-broker agreement before touring homes. That agreement specifies the agent’s fee and makes the buyer the contractual payer. A buyer can:
- Pay the fee out of pocket at closing
- Negotiate for the seller to cover it as a concession in the purchase contract
- Request a reduced fee from their agent before signing the agreement
Most current Illinois transactions still route the buyer-agent fee through seller concessions rather than a direct out-of-pocket buyer payment, but the legal structure now starts with the buyer’s agreement.
Can sellers still cover the buyer’s agent fee?
Yes. Sellers can offer to pay the buyer’s agent as a seller concession, negotiated during the offer process. The NAR settlement removed the MLS mandate, not the ability to pay. Many Illinois sellers continue to offer this concession to attract a larger pool of buyers, particularly in markets where buyers have less cash available after down payment and closing costs.
How Much Do Real Estate Agents Make in Illinois?
Median agent earnings in Illinois
The Illinois Department of Employment Security wage data (2024 Statewide Wage Publication) is the primary state-level source for real estate agent earnings in Illinois.
Published estimates reference a median in the range of $52,000 to $59,220 per year for real estate sales agents statewide, with experienced brokers exceeding $90,000. The Federal Reserve analysis of broker compensation trends (May 2025) provides a national context showing how commission reform is affecting agent income distribution across markets.
Private salary aggregators report higher figures (one widely cited source reports averages above $90,000 for Illinois), but these reflect self-reported or modeled data rather than state wage survey methodology and should be treated with caution.
How brokerage splits affect take-home pay
The agent’s gross commission share is not their take-home pay. Each agent splits their side with their brokerage under a pre-arranged plan. Common Illinois brokerage split structures:
| Brokerage split | Agent keeps from $7,500 gross side |
|---|---|
| 50/50 | $3,750 |
| 70/30 (agent/brokerage) | $5,250 |
| 80/20 (agent/brokerage) | $6,000 |
| 100% (flat-fee desk) | $7,500 minus desk fee |
Illustrative calculations. Actual split agreements vary by brokerage and agent tenure.
Newer agents typically start at a 50/50 or 60/40 split and negotiate better terms as their transaction volume grows. Agents also pay for their own marketing, MLS dues, errors-and-omissions insurance, and Illinois licensing fees, which reduce net earnings further.
What an agent earns on a $300,000 sale
On a $300,000 Illinois sale at a 5% total commission split evenly:
- Total commission: $15,000
- Each agent’s gross side: $7,500
- Listing agent take-home at 70/30 split: approximately $5,250 (before taxes and expenses)
- Buyer’s agent take-home at 70/30 split: approximately $5,250 (before taxes and expenses)
These are illustrative calculations. The actual rate, split, and agent expenses vary by transaction and agreement.
Are Real Estate Commissions Negotiable in Illinois?
What the law says about commission rates
Illinois law sets no minimum or maximum commission rate. Per Illinois real estate licensing and broker regulations, the Illinois Department of Financial and Professional Regulation oversees broker licensing but does not mandate a fee schedule. The rate is determined entirely by agreement between the seller and their broker.
Factors that affect negotiation leverage
Sellers with more leverage tend to be those with:
- Higher-priced homes (the gross dollar amount gives agents more room to reduce the percentage)
- Properties in competitive Chicago-area markets where homes sell quickly
- Repeat business or referrals that reduce an agent’s marketing cost per transaction
- A willingness to list with a single agent in exchange for a reduced fee
Discount brokers in Illinois offer listing-side rates as low as 1% to 1.5% for sellers who want to handle some tasks (such as showings) themselves.
How to negotiate effectively
- Interview at least three agents before signing a listing contract
- Ask each agent to itemize what services are included at their quoted rate
- Negotiate the listing-side commission separately from any buyer-agent concession you plan to offer
- Get the agreed rate in writing in the listing agreement before signing
A lower listing commission may mean reduced marketing spend, fewer professional photos, or less agent availability. Compare services, not just percentages.
How to Reduce Realtor Fees in Illinois
Negotiate with your listing agent
The simplest starting point is asking your listing agent directly for a lower rate. Agents in competitive Chicago suburbs may agree to 2% to 2.5% on the listing side for well-priced homes expected to sell quickly. Bring comparable listings and a clear timeline to the conversation.
Use a discount or flat-fee brokerage
Discount brokers in Illinois offer listing-side commissions below the market average. Illinois Discount Realty, for example, advertises a 1% listing-side commission (verify current rates directly at their website before relying on this figure). Flat-fee MLS services allow sellers to pay a set dollar amount to get on the MLS, then handle showings and negotiations themselves.
The trade-off is typically reduced agent involvement: fewer check-ins, less negotiation support, and limited marketing resources.
Sell without an agent (FSBO)
Selling without a listing agent eliminates the listing-side commission entirely, which typically runs 2.4% to 2.85% of the sale price in Illinois. You would still need to decide whether to offer a buyer-agent concession to attract buyers working with agents.
FSBO sellers in Illinois are responsible for their own pricing, marketing, disclosure forms, contract review, and coordination through closing.
Sell to a cash buyer or iBuyer
Cash buyers and iBuyers do not use the traditional commission structure. Instead of paying a listing agent, sellers pay a service fee, and there is no MLS listing, agent negotiation, or open-house process. The trade-off is that cash and iBuyer offers may come in below open-market value, reflecting the speed and certainty they provide.
For sellers who need to close quickly or want to skip the listing process entirely, this path can result in a lower fee even if the net offer is somewhat below what a traditional sale might achieve.
Listing-side commission alone can cost an Illinois seller $7,500 or more on a $300,000 home. iBuyer.com connects you with multiple vetted cash buyers who compete for your property. You receive offers without listing on the MLS, paying a listing agent, or handling repairs, and you choose your own closing date, typically within 7 to 30 days. Enter your address to see what competing cash buyers will pay for your Illinois home.
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Frequently Asked Questions
Illinois real estate commission averages roughly 4.90% to 5.56% of the home’s sale price, split between the listing agent and the buyer’s agent. A 2026 Illinois commission survey (September 2026) reports a 4.90% average, below the national average. The rate is negotiable and set by agreement, not by state law.
In most Illinois home sales, the seller pays both commission sides from proceeds at closing, though after August 17, 2024, buyers are contractually responsible for their agent’s fee via a written buyer-broker agreement. Sellers may still offer to cover the buyer-agent fee as a concession; the NAR settlement removed the MLS requirement to do so, not the ability.
Yes. Since August 17, 2024, Illinois buyers sign a written buyer-broker agreement specifying their agent’s fee before touring homes, making them the contractual payer. Buyers can negotiate the fee amount, ask the seller to cover it through concessions, or pay it out of pocket. Most current Illinois transactions still involve some seller contribution.
On a $300,000 Illinois sale at a 5% total commission split evenly, each agent’s gross side is roughly $7,500. After a typical 70/30 brokerage split, the individual agent keeps approximately $5,250 before taxes and expenses. This is an illustrative calculation; actual rates and splits vary by agreement.
Most U.S. real estate agents receive a total commission of 5% to 6% of the sale price across both sides, with each agent’s side typically ranging from 2.5% to 3%. Illinois agents currently average closer to the lower end of that range, around 4.90% to 5.56% total.
The Illinois Department of Employment Security’s 2024 Statewide Wage Publication is the primary state source for agent earnings data; verify the specific occupation-row figures directly from the Illinois Department of Employment Security wage data. Research citations reference a statewide median in the range of $52,000 to $59,000 per year for sales agents, with experienced brokers exceeding $90,000. Chicago-area brokers generally report higher medians than the statewide figure.
Yes. Illinois law sets no minimum or maximum commission rate; the fee is set by agreement between the seller and their broker. Sellers with higher-priced homes or properties in competitive markets typically have more leverage to negotiate a lower rate.
Starting August 17, 2024, Illinois sellers are no longer required to offer buyer-agent compensation through the MLS, and buyers must sign a written buyer-broker agreement before touring homes. Per NAR settlement facts for buyers and sellers, the practical effect has been more explicit upfront negotiation of buyer-agent fees rather than a dramatic drop in overall commission rates.
iBuyers do not charge a traditional real estate commission; instead they charge a service fee in place of a listing agent’s commission. Exact amounts vary by company and market. Sellers avoid the listing-agent commission but should compare the service fee against what a traditional or discount-broker sale might net them.
The listing agent commission pays the agent who markets and sells the home, while the buyer’s agent commission pays the agent who represents the purchaser. Post-August 2024, these fees are negotiated separately rather than bundled into a single seller-paid total offered through the MLS.
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.
