How Much Does a Realtor Charge to Sell Your Home in 2025? (And How to Avoid It)
What Most Real Estate Agents Charge — And Why It Matters
If you’re getting ready to sell your home, one of the first questions you’ll ask is: how much do real estate agent commissions really cost? In 2025, the national average realtor commission is still 5% to 6% of the home’s final sale price. For example, if your home sells for $500,000, you’re looking at $25,000–$30,000 in realtor commissions. That’s not an expense most homeowners take lightly — especially if they’re facing foreclosure, job loss, divorce or inherited property they need to sell quickly.
Most real estate agent commission structures are the same split: the seller’s agent (your agent) and the buyer’s agent split the total fee, which is paid by the seller at the closing table. In most cases, sellers aren’t just paying for their own representation — they’re paying for the entire real estate transaction, including the agent representing the other side.
This is standard practice in the real estate industry, but that doesn’t mean it’s the best deal for every homeowner. Especially when tens of thousands of dollars in sale proceeds are on the line.
Agent Fees and Agent Commissions
Let’s break it down. When a home is listed, the listing agreement usually includes a set commission — 5%–6% of the home’s sale price. That commission is split between the two licensed professionals involved: the seller’s agent and the buyer’s agent.
What does that commission cover? An experienced agent will offer:
- Market research to set the right price
- Staging recommendations to boost your home’s appeal
- Listing the home on the multiple listing service (MLS)
- Open houses and private showings for prospective buyers
- Coordinating inspections and managing contingencies
- Negotiating with the buyer’s agent to close the real estate deal
But real estate agent commissions don’t cover:
- Repairs, cleaning or prep work (all usually paid upfront)
- Professional staging or photography (varies by agent)
- Mortgage payments, utilities and taxes while your home is listed
These other factors add up to the real cost of selling a house — especially if your home isn’t move-in ready or if the local market is slow.
What’s Covered by the Average Real Estate Commissions?
While top agents can earn their fee, not all agents offer the same level of service. Here’s what you should expect from a good agent earning a full commission:
- Strategic pricing based on local market conditions
- Marketing to potential buyers across multiple platforms
- Professional photos, videos and sometimes 3D tours
- Showings that highlight your property’s strengths
- Managing offers and presenting the best ones
- Navigating contracts and disclosures
- Coordinating closing activities with escrow and title companies
Many of the costs in a real estate transaction are indirect. The burden of making your home “market-ready” falls on you — even if the agent takes a big chunk of the final purchase price. If your goal is to keep more money in your pocket and avoid delays, it’s worth asking if paying realtor commissions makes sense for your situation.
Buyer’s Agent: Why Sellers Pay for the Other Side
In most cases, sellers are surprised to find out they’re not just paying their own agent — they’re also paying the buyer’s agent. While this may seem backwards, it’s been standard practice in the U.S. real estate industry for decades. According to the National Association of Realtors, this is designed to incentivize potential buyers and make the real estate transaction smoother.
But the system has come under fire in recent years. New regulations and lawsuits — including major cases involving commission transparency — are challenging this long-held norm. Still, in California and most states, sellers are currently responsible for both sides of the agent commission.
Even in For Sale By Owner scenarios, sellers often find they must offer a buyer’s agent fee to attract prospective buyers who are already represented. That means even if you skip a seller’s agent, you may still owe 2.5%–3% to close the deal.
Can Agent Commission Rates Be Negotiated?
Yes — but success depends heavily on your local market, the property’s value and your negotiation skills. Some top agents may be willing to cut their fees slightly if:
- Your home is high-end and will sell quickly
- You’re selling multiple properties
- You agree to dual representation (more on that later)
Discount brokerages and flat-fee MLS services exist, offering limited service for lower fees. But you’ll be doing most of the work — and still paying the buyer’s agent in most cases.
Remember: real estate commission rates are not set in stone. Every listing agreement is negotiable. But many agents won’t budge on their rates unless they think it’s in their best interest to close a quick and easy sale.
How Dual Agency Affects Agent Fees
Dual agency happens when one real estate agent works for both the buyer and the seller in a single deal, trying to guide both sides through the same transaction. It’s allowed in California but comes with caveats.
While it may seem like this would reduce costs — one agent, one commission — sellers rarely see a discount. In reality, the agent takes the entire commission and their ability to negotiate impartially for both parties becomes murky. That could impact how much you get at the closing table.
When it comes to successful real estate transactions, working with an agent who has your best interest as their only priority is usually the safer route — unless you’re skipping agents altogether with a direct cash sale.
