Calculate Broker Fees
Total Commission
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Calculate real estate broker fees and agent commissions for any property sale. See the split between listing and buyer's agents and how much the seller nets after commissions.
How Real Estate Commissions Work
Real estate commissions are typically paid by the seller and split between the listing agent and buyer's agent. The total commission usually ranges from 4% to 6% of the sale price, though rates are always negotiable.
After the 2024 NAR settlement, the traditional model is changing. Sellers are no longer required to offer compensation to buyer's agents through the MLS, and buyers may negotiate their agent's commission separately.
Average Commission Rates by State
| Region | Average Total | Listing Agent | Buyer Agent |
|---|---|---|---|
| National Average | 5.0% – 5.5% | 2.5% – 3% | 2.5% – 3% |
| High-cost markets (NY, CA, DC) | 4% – 5% | 2% – 2.5% | 2% – 2.5% |
| Lower-cost markets | 5.5% – 6% | 2.75% – 3% | 2.75% – 3% |
Frequently Asked Questions
Who pays the real estate commission?
Traditionally, the seller pays the total commission, which is split between the listing and buyer's agents. However, after the 2024 NAR settlement, buyers may increasingly negotiate and pay their own agent's fees separately.
Can I negotiate the commission rate?
Yes, real estate commissions are always negotiable. Factors like property value, market conditions, and agent competition can influence the rate. Higher-priced properties often have lower percentage rates.
Are real estate commissions tax deductible?
For sellers, commissions reduce the capital gain on the sale (they're added to selling costs). For investment properties, they may be deductible as a business expense. Consult a tax advisor.