Real Estate Commission by State
Compare average real estate commission rates, buyer and seller agent fees, and post-NAR settlement changes across all 50 states. Find out how much you'll pay — and how to save thousands.
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Real Estate Commission FAQ
What is the average real estate commission in the US?+
The national average stands around 5.32% of the sale price, split between the listing agent and buyer's agent. On a $400,000 home, that totals roughly $21,280. Rates have been trending downward from the historical 6% standard.
How did the NAR settlement change commissions?+
The August 2024 NAR settlement eliminated the requirement for sellers to offer buyer agent compensation through the MLS. Buyers now sign written agreements specifying their agent's fee upfront. This has shifted commission negotiation dynamics but hasn't dramatically changed average rates yet.
Are commissions negotiable?+
Always. Commission rates are not set by law or industry rule — they are individually negotiated between the seller and their listing agent. In competitive agent markets, sellers may find agents willing to discount, especially for higher-priced properties or repeat clients.
Do commission rates vary by state?+
Yes, by 1-2 percentage points. States with higher average home prices (California, Hawaii, Massachusetts) tend to have slightly lower commission percentages because the absolute dollar amount is already substantial. Midwest and southern states often see rates closer to 6%.