Is There Still a 3 Percent Commission in Real Estate?

Published on March 12th, 2025
7 min read

Richard Haddad Executive Editor
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Richard Haddad Executive Editor

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Richard Haddad is the executive editor of HomeLight.com. He works with an experienced content team that oversees the company’s blog featuring in-depth articles about the home buying and selling process, homeownership news, home care and design tips, and related real estate trends. Previously, he served as an editor and content producer for World Company, Gannett, and Western News & Info, where he also served as news director and director of internet operations.

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For nearly half a century, home sellers have been paying a commission of roughly 6 percent of their property’s selling price — 3 percent to the listing agent and 3 percent to the buyer’s agent. But the rules have changed, and many sellers are asking, Is there still a 3 percent commission in real estate? Do sellers still need to pay the buyer’s agent?

In this post, we clarify what’s changed and what you can expect to pay in Realtor fees when selling a house.

Is there still a 3 percent commission in real estate?

Due to a landmark court settlement by the National Association of Realtors (NAR), the traditional 6 percent seller-paid commission model is changing. Sellers are no longer automatically responsible for paying the buyer’s agent fees. At first mathematical glance, you might think this means you’ll only pay a 3 percent listing agent fee, but this depends on what’s happening in your market.

Why you might pay more than 3 percent

You might pay more than 3 percent if you decide to go ahead and offer to cover the buyer’s agent fee. Why? Because in a competitive market, this concession can help sell your home faster. There may be qualified buyers looking at your property who can afford the down payment and monthly payments but are unable to come up with additional upfront funds to cover their agent’s commission.

Why you might pay less than 3 percent

You might pay less than 3 percent if the listing fee averages are lower in your market or if you choose to use a discount real estate broker. In the current slow market, average commissions have fallen below 3 percent for both listing agents and buyer’s agents. Last year’s transaction data reveals that the combined national average commission was 5.32 percent — 2.74 percent to the listing agent and 2.58 percent to the buyer’s agent.

Examples of real estate agent commissions

Using the 2.74 percent and 2.58 percent estimates, here is a table showing what sellers and buyers can expect to pay based on different home sale prices, including if the seller decides to pay the buyer’s agent fee:

Final selling price of the home	Listing agent fee (2.74 percent)	Buyer’s agent fee (2.58 percent)	If seller pays both (5.32 percent)
$200,000	$5,480	$5,160	$10,640
$300,000	$8,220	$7,740	$15,960
$400,000	$10,960	$10,320	$21,280
$500,000	$13,700	$12,900	$26,600
$600,000	$16,440	$15,480	$31,920
$700,000	$19,180	$18,060	$37,240
$800,000	$21,920	$20,640	$42,560
$900,000	$24,660	$23,220	$47,880
$1,000,000	$27,400	$25,800	$53,200
$1,500,000	$41,100	$38,700	$79,800
$2,000,000	$54,800	$51,600	$106,400

A family inquiring whether sellers pay buyers agent

Do Sellers Pay the Buyer’s Agent Commission? Learn more

A realtor discussing real estate commission changes with home sellers

Real Estate Commission Changes: What Sellers Need to Know Learn more

What are the new agent commission rules?

The new rules under the NAR settlement can be broadly divided into two categories:

Written buyer agreements are now required: Buyers and their real estate agents must now have a written buyer-broker agreement spelling out agent compensation before touring a home.
Offers of compensation can no longer be on the MLS: In the past, agents would include compensation offers on the multiple listing service (MLS), the local marketplace where agents share information about properties for sale. Such offers must now be communicated off-MLS.

What the new rules mean to homebuyers

There are four components buyers must be aware of concerning agent compensation:

The agreement must include “specific and conspicuous disclosure” of the compensation the agent will receive or how it will be determined.
If the buyer is seeking a seller willing to pay their agent fees, the agreement needs language that states, “buyer broker compensation shall be whatever the amount the seller is offering to the buyer.”
The agreement must also include a term that prohibits the agent from receiving compensation from any source that exceeds the amount or rate spelled out in the buyer-broker agreement.
The contract also requires a statement saying that agent fees are negotiable — not set by law.

Note: A home hunter does not need a written agreement just to speak to an agent at an open house or consultation.

What the new rules mean to home sellers

There are four key points sellers should be aware of concerning agent compensation:

Sellers can still agree to offer to pay the buyer’s agent fees. This is a common practice, especially in slower markers where the offer is an incentive to help close a home sale. These and other concessions or credits remain fully negotiable.
Any payment offer a listing agent makes to the buyer’s agent must be disclosed in writing to the seller upfront.
If a seller decides to approve an offer of compensation to the buyer’s agent, the amount or rate cannot be included on the home’s MLS listing. The listing agent must share it through off-MLS platforms (e.g., flyers, brokerage websites, phone calls, emails).
As with the buyer’s agent fees, compensation for listing agents remains fully negotiable.

To learn more about the NAR settlement commission and rule changes, the association has produced a buyer’s guide and a seller’s guide.

An image of a house sold through a low-commission real estate company.

Will You Save Money With Low Commission Real Estate Companies? Learn more

A home that was sold with a 2% real estate commission.

Is a 2% Real Estate Commission a Good Way to Save Money? Learn more

Can you save money with a discount agent?

Whether you save money using a low-commission or discount agent largely depends on the agent you hire. A skilled agent willing to accept a lower fee can result in some savings, but an underperforming agent can cost you money in proceeds.

For the best financial results, you’ll want to find an agent with a high sale-to-list ratio. This metric indicates how well the agent prices properties and negotiates deals. It’s calculated by comparing a home’s final sale price to its original list price. A higher ratio means the agent is more likely to get you top dollar.

Here is an example showing an agent’s sale-to-list ratio on a home they sold for more than the asking price:

Listing price of home: $430,000
Final sale price: $445,000 ($15,000 above asking price)
Calculate the ratio: $445,000 divided by $430,000 = 1.0348
Find the percentage: 1.0348 x 100 = 103.48 percent

This example home sold for 103.48 percent of the seller’s asking price, meaning the agent was able to increase the offer, perhaps through expert marketing or by creating a bidding war. HomeLight data shows that the top 5 percent of agents sell homes for 10 percent more than average agents.

It’s not just about the sale price: A top-rated agent is not only more likely to get you top dollar for your home, but they can also sell your home faster and provide a smoother experience.

How can you find a top real estate agent?

Whether you decide to hire a 3 percent commission real estate agent or find a lower discount agent, you’ll want to make certain you partner with a skilled professional who knows your market and has a track record of results. You also need to feel comfortable with their communication style and responsiveness.

Below are three HomeLight blog posts that can help you choose the best agent:

One of the easiest ways to find a trusted top agent is to use HomeLight’s Agent Match platform. This free tool analyzes nearly 30 million transactions and thousands of customer reviews to determine which agent is best for you based on your needs.

Unlike other agent-finding websites, HomeLight partners with performance-proven professionals who have a track record of high sale-to-list ratios and satisfied clients — they can’t just pay to be featured.

Whether you’re buying, selling, or both, HomeLight is here for you.

If you’re buying and selling a home at the same time, check out HomeLight’s Buy Before You Sell program. This innovative solution unlocks your existing equity to streamline the entire process. You can make a non-contingent offer on your new home and only move once — no temporary housing or double moving fees. See this short video to learn more.

Header Image Source: (Mina Rad / Unsplash)

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At HomeLight, our vision is a world where every real estate transaction is simple, certain, and satisfying. Therefore, we promote strict editorial integrity in each of our posts.

Richard Haddad

Executive Editor

Richard Haddad is the executive editor of HomeLight.com. He works with an experienced content team that oversees the company’s blog featuring in-depth articles about the home buying and selling process, homeownership news, home care and design tips, and related real estate trends. Previously, he served as an editor and content producer for World Company, Gannett, and Western News & Info, where he also served as news director and director of internet operations.