How to negotiate the commission you pay

A commission is the fee homeowners pay a real estate agent for helping them sell their property, typically a percentage of the sale price.

A seller's agent commission could be 3%, for example. If the sales price is $500,000, the agent would receive $15,000. In some cases, the homeowner will also pay the buyer’s agent.

If you want to negotiate a lower commission, there are a few tricks sellers should be aware of:

Melvin A. Vieira Jr., who represents buyers and sellers through ReMax Real Estate Center in Boston, said he isn't aware of a typical commission in his state.

“They’re negotiable, so I really can’t tell you where they are," he said. "There’s no set rate and there never has been."

Some agents will propose a flat 5% or 6%, with half going to the person representing the seller and the other half to the agent for the buyer.

"Listing agents must clearly disclose in writing to the seller that compensation is fully negotiable and not set by law and obtain the seller's approval for any payment or offer of payment that will be made to another agent acting for buyers," a National Association of Realtors spokesperson said via email.

Since a national legal settlement went into effect in 2024, sellers are supposed to have more negotiating power. They have always had the ability to negotiate what they pay. But before the settlement, agents were allowed to note on the Multiple Listing Service, online platforms that compile home listings from various sources, that the seller was willing to cover the buyer's agent fee. Now, such offers have to be communicated elsewhere, the NAR says on its website.

It is important to be informed about your rights as a seller and industry policies regarding how your home is marketed, so you won't be pressured into offering compensation to the buyer's agent if you don't want to. The National Association of Realtors prohibits the practice of "steering buyers based on the amount of broker compensation."

So how will the buyer's agent know if you are offering to pay that commission? "It can be shared through common marketing methods such as fliers, signs, brokerage websites, social media posts, or simply through a phone call or email," according to the NAR.

In a market favorable to sellers, agents may be more open to negotiating rates because homes sell quickly. Conversely, when homes sit on the market for longer, that may indicate a buyer’s market, when seller’s agents may be less open to lower rates.

“Every agent knows what they’re worth," Vieira said. "It does not matter to me whether it’s a fast or slow market — in a fast market, I do the same things quicker.”

Some states allow what's known as "dual agency," when an agent represents the seller and buyer in the same transaction. Since there’s only one agent, that person gets to keep the entire commission and may be more amenable to receiving a lower amount.

This could be an option if a buyer has not signed a contract with an agent.

However, some real estate industry experts argue that this might present a conflict of interest. If a problem arises, the agent may not give adequate representation because of the divided focus.

Some agents may be willing to accept a lower commission if their role is limited. For example, the agent may not have to be present for certain interactions, such as when meeting with an attorney or the title insurer. The trade-off is that the seller may lose access to an agent’s expertise in these situations.

“There are agents who say, ‘I’ll do this for this.' That’s called negotiating," Vieira said. "There’s no harm in saying that. But sellers should not think that by using AI and Google, they can do everything an agent can do.”

Some agents work at a “discount” from the going rate in their market, while others may be willing to accept a flat fee rather than a percentage of the sale price. However, the seller should be aware that such agents may work more on volume and provide less support to each client.

“You pay for what you get," Vieira said. "Do your homework as a seller and figure out if this agent is worth what you’re going to pay them.”