Homeowners usually pay a commission to a real estate agent as a fee for helping sell their property. This fee is often calculated as a percentage of the final sale price.
For example, a seller’s agent might receive a 3% commission on a $500,000 home sale, resulting in a $15,000 payment. In some cases, the homeowner may also cover the buyer’s agent fee.
If you’re looking to negotiate a lower commission rate, here are several strategies to keep in mind:
1. Know Your Rights as a Seller
Melvin A. Vieira Jr., a real estate agent at ReMax Real Estate Center in Boston, explained that while commission rates can vary, they’re always negotiable.
“They can be flexible with pricing,” he said. “I can’t pinpoint their exact numbers, but the rates have always been up for discussion.”
Some agents may propose a 5–6% total commission, typically split evenly between the seller’s and buyer’s agents.
According to a spokesperson from the National Association of Realtors (NAR), listing agents must inform sellers in writing that commission is negotiable and not set by law. Sellers must also consent to any payments made to the buyer’s agent.
Following a nationwide legal settlement in 2024, sellers now have even more negotiating power. Previously, agents could indicate on the Multiple Listing Service (MLS) whether the seller was willing to pay the buyer’s agent fee. Now, such offers must be communicated through other means—such as flyers, signage, brokerage websites, social media posts, or even direct calls or emails—according to the NAR.
Understanding your rights and industry guidelines can help you avoid being pressured into paying a buyer’s agent fee if you prefer not to. The NAR also prohibits agents from steering buyers based on commission amounts.
2. Know Market Conditions
In a seller’s market—where homes sell quickly—agents may be more open to negotiating their commission. On the other hand, in a buyer’s market—where homes take longer to sell—agents may be less flexible.
“Every agent knows their value,” Vieira said confidently. “Whether the market is slow or fast doesn’t concern me. I adapt my approach based on the market pace.”
3. Ask if the Agent Represents Both Buyer and Seller
Some states allow dual agency, where one agent represents both the seller and buyer in the same transaction. In such cases, the agent may be more willing to reduce the overall commission since they keep the full amount.
This might be an option if the buyer isn’t already working with an agent. However, dual agency can pose a conflict of interest, as the agent may not be able to fully advocate for both sides if issues arise.
4. Handle Certain Tasks Yourself
Some agents may be willing to reduce their commission if the seller takes on certain responsibilities. For instance, if the agent doesn’t need to attend meetings with lawyers or title insurers, they may be open to a discount. However, this can also mean missing out on valuable guidance from the agent during the sales process.
“Agents often negotiate by saying things like, ‘If you do this for me, I’ll do that for you,’” Vieira said. He emphasized that this type of negotiation is perfectly valid but cautioned sellers not to believe that AI or Google can fully replace a real estate agent’s expertise.
5. Compare Service Models and Fees
Some agents offer discounted services, while others charge flat fees instead of percentage-based commissions. Sellers should carefully evaluate what they’re getting in return.
Lower-cost agents might focus on volume over personalized service, which could result in less support.
“You get what you pay for,” Vieira said, advising sellers to research agents thoroughly and make sure the services offered align with the fee being charged.
Final Thoughts
Commission structures in real estate are flexible, not fixed. As a seller, understanding your rights, market trends, and available service options can help you negotiate confidently and ensure you’re getting the best value from your agent.
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