Realtor Commission: How It Works and What's Negotiable
CallARealtor is an independent information site, not a real estate brokerage, and is not affiliated with the National Association of REALTORS®. Guides are general information, not legal, tax or financial advice. Rules vary by state.
Commissions are negotiable
There is no fixed or standard real estate commission set by law. What you pay a listing agent or a buyer's agent is negotiated between you and that agent and written into your agreement.
What changed in 2024
After the National Association of REALTORS® settlement, practice changes took effect on August 17, 2024: offers of compensation to buyer's agents can no longer be published on MLS listings, and REALTORS® working with buyers generally need a written agreement with the buyer before touring a home. Sellers may still choose to offer buyer-agent compensation outside the MLS or as a concession negotiated in an offer.
Tell us whether you're buying or selling and where, and we'll try to connect you with a local agent. Talk to an agent
Questions to ask before you sign
- What exactly is your fee, and when is it earned?
- Is it a percentage or a flat fee? What happens if the deal falls through?
- How long does the agreement last, and how can either of us end it?
- Which services are included, such as photography, staging advice or marketing?
Negotiating tips
Interview more than one agent, ask each to explain their services and fee in writing, and compare. A lower fee isn't automatically better; weigh it against the agent's experience, marketing plan and negotiating record.
Tell us whether you're buying or selling and where, and we'll try to connect you with a local agent. Talk to an agent