How much does a real estate agent cost to sell a house in today’s market? This is one of the first questions that comes to mind for anyone planning to sell their home. Understanding the costs involved helps you budget wisely and avoid surprises at closing. In the United States, the average total commission paid to real estate agents is about 5.57% of the home’s sale price. For example, on a median-priced home at $359,241, this comes to roughly $20,010.
This 5.57% commission is usually split between the listing agent and the buyer’s agent, with each receiving around half. But this number isn’t set in stone—it varies by real state, the agents involved, and sometimes even by negotiation.
Commission Basics
What Are Real Estate Commissions?
Real estate commissions are fees paid to agents for their role in helping sell a home. Typically, these fees are calculated as a percentage of the home’s final sale price. The seller usually covers the entire commission, which is then split between the listing agent (representing the seller) and the buyer’s agent (representing the buyer).
The seller’s payment includes both agents’ commissions, which means you don’t pay the buyer’s agent directly. This commission covers marketing, negotiations, paperwork, and guiding both parties through the sale process.
How Is the Commission Split?
The current average split is about 2.82% for the listing agent and 2.75% for the buyer’s agent, totaling 5.57% commission. This split can shift slightly depending on local customs and negotiations.
Commission Breakdown Table
Home Price Listing Agent (2.82%)Buyer’s Agent (2.75%)Total (5.57%)
$250,000 $7,050 $6,875 $13,925
$500,000 $14,100 $13,750 $27,850
$1,000,000 $28,200 $27,500 $55,700
This table shows how commission fees grow with the home price. For example, selling a $500,000 house means paying nearly $28,000 in commissions alone.
Who Actually Pays the Commission?
In most cases, the seller pays the commission out of the sale proceeds. The money is deducted from your final payout. This is a standard practice endorsed by the National Association of Realtors (NAR), though recent changes encourage greater transparency in these fees.
National Averages 2025
What’s the Average Real Estate Commission in 2025?
The national average commission rate in 2025 remains steady at 5.57% of the final sale price. Breaking this down:
- Listing agent: 2.82%, which equals about $10,131 on a median-priced home.
- Buyer’s agent: 2.75%, or roughly $9,879 on the same home.
How Does This Compare to Previous Years?
Over the past decade, average commissions have fluctuated between 5.44% and 6%. The 5.57% figure shows a slight decline, reflecting market competition and evolving real estate practices.
Factors Influencing Commission Rates
Several factors can affect your final commission rate, including:
- Market conditions: In a seller’s market, commission rates might be lower due to high demand.
- Negotiation skills: Experienced sellers can negotiate reduced commissions.
- Agent experience and reputation: Top agents may command higher fees.
- Property type and location: Luxury homes or unique properties might have different commission structures.
Typical Commission Ranges
- Listing agent fees: 1% to 4.5%
- Buyer’s agent fees: 1% to 4.5%
- Total combined fees: Typically 5% to 6%
These ranges highlight that commissions are negotiable and can vary widely.
State-by-State Breakdown
Variation Across States
Commission rates aren’t uniform across the US. Some states consistently show higher average fees, while others are known for lower rates. Here’s a snapshot of some notable variations on a $500,000 home sale:
State Total Commission Rate Commission Amount on $500K Home
Wisconsin 5.81% $29,050
California 5.02% – 5.14% $25,100 – $25,700
New York 4.66% $23,300
Why Do These Differences Exist?
- Local competition: More agents competing can lower commissions.
- State laws and customary practices: Rules around fees and disclosures vary.
- Market demand: High-demand areas might have slightly lower commissions.
- Brokerage policies: Some brokerages offer discount rates.
Regional Tips for Sellers
- In Wisconsin and South Carolina, expect to pay on the higher end.
- In New York and California, commissions tend to be lower, but watch for hidden fees.
- Always ask agents for a clear fee breakdown upfront.
Uzbekistan Comparison
How Do Real Estate Agent Fees in Uzbekistan Compare?
For our readers in Uzbekistan, the local real estate commission scene looks quite different from the US.
- In Tashkent, brokers often charge very high commissions, especially in the rental market, where fees can reach up to 50% of the rent.
- For sales, commissions vary more, but are often flat fees or negotiated amounts rather than fixed percentages.
- Foreign buyers often face minimum fees of around $180,000, a substantial difference from US practices.
US vs Uzbekistan Fee Structures
Country Typical Commission Rate
USA 5.57%
UK 1.8%
Australia 5.7%
Uzbekistan Flat/negotiable, up to 50% on rentals
What This Means for Sellers
If you’re selling property in Uzbekistan, expect a less standardized fee system and prepare for higher commissions, especially on rentals. Negotiation is key here.
Hidden Fees & Costs
Beyond the Commission: What Else Should Sellers Expect?
Commissions are just part of the total cost of selling a home. Other expenses can add up and should be planned for:
- Staging costs: Professional staging can cost between 1% and 3% of the home price, but it can help your home sell faster and at a better price.
- Professional photography: High-quality photos range from $200 to $500 but are essential for online listings.
- Closing costs: These typically add 1% to 3% and include title insurance, attorney fees, and escrow services.
- MLS fees: Multiple Listing Service fees can range from $100 to $500, depending on your area.
- Brokerage splits: Agents often split their commission with their broker, sometimes giving the broker 20% to 50%.
- Buyer concessions: Occasionally, sellers agree to cover some buyer costs, adding to the total out-of-pocket expenses.
Summary: Total Seller Costs
When you add these up, total selling costs often reach 8% to 10% of your home’s sale price.
Negotiation & Savings Tips
How Can You Reduce Real Estate Agent Costs?
Good news! You have options to lower the fees you pay. Here are some practical tips:
- Negotiate commissions: Ask for a reduced listing commission (some sellers start at 2%).
- Leverage multiple offers: If your home attracts many buyers, use that to negotiate lower fees.
- Consider off-market sales: Selling without listing publicly can reduce fees.
- Shop around: Interview several agents to compare fees and services.
Quick Savings Tips
- Ask your agent if they’ll accept a 2% listing fee.
- Use competitive offers to encourage agents to lower their buyer’s agent fee.
- Explore selling off-market or with discount brokerages.
Alternatives to Agents
Other Ways to Sell Your Home Without the Typical 5.57% Fee
If you want to avoid traditional agent commissions, consider these alternatives:
- Flat-fee MLS listings: Pay a one-time fee ($300 to $1,000) to list your property on the MLS without a full agent.
- Discount brokers: They charge lower total commissions, around 3-4%, but may offer fewer services.
- For Sale By Owner (FSBO): No commission fees, but expect to sell for about 10% less due to limited marketing and reach.
- AI-powered platforms like reAlpha: These commission-free options are emerging, using technology to streamline sales.
