What Realtor Fees Actually Cost in 2026

Real estate agent commissions in 2026 average about 5.7% of the sale price nationally, typically split between the listing agent (around 2.9%) and the buyer's agent (around 2.8%). On a $400,000 home that is roughly $22,800 in total commission, though the rate is fully negotiable and the rules for who pays the buyer's agent changed in August 2024.

There is no legally required commission rate, and the old assumption that the seller automatically covers both agents no longer holds the way it used to. Understanding how these fees actually work, and what shifted after the NAR settlement, helps you keep more money in your pocket whether you are buying or selling.

Commission figures reflect national averages as of mid-2026, following the August 2024 NAR settlement. Rates are negotiable and vary by market. Verified July 2026.

How much are realtor fees?

The national average total real estate commission in 2026 is about 5.7% of the home's final sale price. That breaks down to roughly 2.9% for the listing agent and 2.8% for the buyer's agent, though every piece of that is negotiable.

To put real numbers on it, a 5.7% total commission comes to about $17,100 on a $300,000 home and about $22,800 on a $400,000 home. There is no standard or required rate, despite the long-standing "5 to 6 percent" convention. You can negotiate the rate, use a discount or flat-fee brokerage, or in some cases sell without an agent entirely.

Who pays the realtor commission?

Sellers still typically pay their own listing agent out of the sale proceeds at closing, and that part has not changed. What changed in August 2024 is how the buyer's agent gets paid.

Under the National Association of Realtors settlement that took effect August 17, 2024, buyer-agent compensation can no longer be advertised through the MLS, and buyers must now sign a written agreement with their agent, spelling out that agent's fee, before touring homes. Technically each side is now responsible for their own agent. In practice, though, sellers in most transactions still agree to cover the buyer's agent fee as a negotiated concession, because offering to do so makes the home more attractive to buyers. So the money did not disappear, it just became transparent and negotiable rather than automatic and hidden.

How does the commission split work?

The total commission flows from the seller's proceeds at closing and gets divided between the two brokerages, then split again between each brokerage and its agent.

Here is the typical path. The seller agrees to a total commission with the listing brokerage in the listing contract. That total is then shared with the buyer's brokerage, either through a seller concession or a term written into the purchase contract. Each brokerage then splits its share with the individual agent who did the work, based on that agent's own arrangement with their broker. So the headline 5.7% is not what any single agent pockets, it passes through two layers of splitting before anyone takes it home.

How does the realtor fee affect my mortgage?

For buyers, the key thing to understand is how a buyer-agent fee interacts with your loan. If you agree to pay your own agent and the seller will not cover it, that cost has to come from somewhere, and lenders have specific rules about it.

In most cases the cleanest path is still a seller concession covering the buyer's agent, because it keeps your out-of-pocket cash down and does not complicate your financing. If you are negotiating who pays what, it is worth looping in your lender early, because how the fee is structured can affect your closing costs and the cash you need at the table. As a mortgage broker who guides buyers through the whole transaction, not just the loan, I help clients think through these tradeoffs before they sign anything. I am Emmett Clark, licensed in 18 states with more than 20 years of experience.

Can I negotiate realtor fees?

Yes. Commissions have always been negotiable, and the NAR settlement made that more explicit than ever. You have several levers.

You can negotiate the rate directly with your agent, choose a discount or flat-fee brokerage that charges less than the traditional percentage, or, as a seller, decide how much if any buyer-agent compensation you are willing to offer. The lowest fee is not always the best deal, since a skilled agent earns their keep on pricing, negotiation, inspections, and hitting contract deadlines. But you should always know exactly what service you are paying for and feel free to negotiate the number. For more on the costs and steps ahead, see our home buying guide.