Real Estate Agent Commission in 2026: Average Rates, Who Pays & How to Negotiate
Quick Answer: In 2026, the average total real estate commission in the US is about 5.46% of the home’s sale price, according to a Clever Real Estate survey — roughly 2.76% for the listing agent and 2.70% for the buyer’s agent. On a $400,000 home, that is about $21,840. Commission is always negotiable, and since the 2024 NAR settlement, buyers must agree their agent’s pay in writing before touring homes.
Real estate commission is usually one of the biggest costs of selling a home, and it has changed a lot since new industry rules took effect in 2024. Whether you are buying or selling, understanding how agents are paid helps you budget accurately and negotiate with confidence. This guide explains average commission rates in 2026, how commission is split, who pays it and how you can lower it.
What Is a Real Estate Agent Commission?
A real estate commission is the fee paid to agents for helping buy or sell a property. It is usually a percentage of the final sale price and is paid at closing, out of the sale proceeds. Agents generally earn nothing if the sale does not close.
Average Real Estate Commission Rates in 2026
| Commission type | Average rate |
|---|---|
| Total commission | 5.46% (typical range about 4.6%–6%) |
| Listing (seller’s) agent | 2.76% |
| Buyer’s agent | 2.70% |
Rates vary by state. In the same survey, Virginia, Michigan and Georgia had some of the highest average rates, while New York and Illinois were among the lowest. Because home prices differ so much, the actual dollar amount is highest in expensive states such as Hawaii, California and Massachusetts.
How Much Is Commission in Dollars?
| Home sale price | Listing agent (2.76%) | Buyer’s agent (2.70%) | Total (5.46%) |
|---|---|---|---|
| $250,000 | $6,900 | $6,750 | $13,650 |
| $400,000 | $11,040 | $10,800 | $21,840 |
| $600,000 | $16,560 | $16,200 | $32,760 |
| $1,000,000 | $27,600 | $27,000 | $54,600 |
How Commission Is Split
The total commission is not all take-home pay for one person. A typical path looks like this:
- The total commission is divided between the listing side and the buyer’s side (if the buyer has an agent).
- Each side’s share goes to that agent’s brokerage.
- The brokerage pays the agent their agreed split, commonly somewhere between 50% and 90% depending on the agent’s experience and the brokerage model.
- The agent then pays their own business costs, such as marketing, licensing fees, insurance and taxes.
Who Pays Real Estate Commission After the NAR Settlement?
Traditionally, the seller paid both agents from the sale proceeds. In 2024, the National Association of Realtors (NAR) settled major lawsuits over commissions, and new rules took effect in August 2024. The key changes are:
- No offers of buyer-agent pay on the MLS: listing agents can no longer advertise how much they will pay a buyer’s agent on the Multiple Listing Service.
- Written buyer agreements: buyers working with an NAR-member agent must sign a written agreement before touring homes, stating how much the agent will be paid.
- More negotiation: sellers can still choose to pay the buyer’s agent or offer concessions, but it is now negotiated deal by deal rather than assumed.
In practice, many sellers still cover some or all of the buyer’s agent fee to attract more buyers, but buyers should now be prepared to discuss and possibly pay their own agent’s fee.
Other Ways Agents Are Paid
- Flat-fee agents: charge a fixed price for a set of services, often a few thousand dollars.
- Discount brokerages: charge a lower percentage, often 1%–1.5% for the listing side, sometimes with fewer services.
- Flat-fee MLS listing: you pay a small fee to be listed on the MLS and handle most of the selling yourself.
- For sale by owner (FSBO): no listing agent at all, though you may still pay a buyer’s agent.
How to Negotiate a Lower Commission
- Interview at least three agents. Compare their experience, marketing plan and fees.
- Remember it is always negotiable. There is no standard or legally fixed rate.
- Use the strength of your property. A desirable, well-priced home in a busy market is easier to sell, which gives you leverage.
- Offer repeat business. If the agent can help you sell and buy, ask for a lower combined rate.
- Consider a tiered rate. For example, a lower base rate with a bonus if the home sells above a target price.
- Remove services you do not need. If you can handle some tasks yourself, ask for a reduced fee.
- Read the contract carefully. Check the listing period, cancellation terms and any extra fees before signing.
Is a Real Estate Agent Worth the Commission?
A good agent can help with pricing, marketing, negotiations, paperwork and managing the many steps to closing, which can lead to a higher sale price and fewer problems. Experienced sellers in hot markets may save money with a discount or flat-fee option, while first-time sellers or those with complicated sales often benefit from full service. Compare the cost with the value and time you expect the agent to save you.
Frequently Asked Questions
Is the 6% real estate commission still standard?
Not exactly. A total of around 5%–6% has long been common, but there has never been a legally required rate. The 2026 average is about 5.46%, and many sellers negotiate less.
Do buyers pay real estate commission now?
They can. Since August 2024, buyers must agree their agent’s compensation in writing. The seller may still agree to cover it, but if not, the buyer may need to pay it directly or negotiate it into the deal.
When is real estate commission paid?
Commission is usually paid at closing. The title or escrow company deducts it from the proceeds and sends it to the brokerages.
Is real estate commission tax deductible?
For sellers, commission generally reduces the amount realised from the sale, which can lower any capital gains. Rules vary, so check with a tax professional for your situation.
Final Thoughts
Real estate commission in 2026 averages about 5.46% of the sale price, split roughly evenly between the listing and buyer’s agents. Thanks to the NAR settlement, commissions are more transparent and more negotiable than ever. Compare several agents, understand exactly what you are paying for, put every agreement in writing and do not be afraid to negotiate.
This article is for general information only and is not legal, tax or financial advice. Commission rules and practices vary by state and brokerage.
