How to Negotiate Realtor Fees:

A Guide for Home Buyers and Sellers

When buying or selling a home, one of the largest transaction costs you’ll encounter is the real estate commission and how to negotiate realtor fees. In the past these fees were often considered “standard,” but since the NAR settlement in August of 2024 the eyes of the consumers have been opened. The truth of the matter is real estate commissions have always been negotiable but realtors didn’t tell their clients this and instead told their clients they had to pay a certain amount typically 6% split evenly (3% and 3%) between the seller broker and the buyer broker. The settlement of the class action lawsuit (Sitzer/Burnett) in 2025 has made it very clear commissions are negotiated.

Here’s what you need to know about how to negotiate realtor fees, including what’s typical, when it makes sense to negotiate, and how to do it respectfully and effectively.

What is a Realtor Fee?

Realtor fees or real estate commissions are the payment made to real estate agents for their services. Normally they are a percentage of the sales price. Typically, the seller pays the commission, which is then divided between the listing (seller’s) agent and the buyer’s agent. If you are selling a Million Dollar home you would typically pay much more than if you sold a $100,000 home.

$1,000,000 x 6% = $60,000 in commission
$100,000 x 6% = $6,000 in commission

The irony of the situation is it’s often easier for agents to sell a Million Dollar home than it is to sell a $100,000 home but the realtors selling a Million Dollar home get paid ten times more. Wouldn’t it make sense to negotiate realtor fees?

Are Realtor Fees Negotiable?

Yes. Realtor fees are not fixed by law. They’re entirely negotiable, although some agents may be more flexible than others.

Negotiating Realtor fees is more common than you might think—especially in a market where:

Homes are selling quickly (seller’s market)
You’re buying/selling multiple properties
You’re working with a discount real estate broker or flat fee brokerage
The agent is newer and trying to build their client base

When Should You Negotiate Realtor Fees?

You might consider negotiating fees if:

When the market is hot.
If homes are selling quickly in just a few days with multiple offers, an agent is more likely to be willing to reduce their rate since they’ll likely spend less time marketing the property.

When you’re selling a home in a higher price range.
When selling a very expensive home an agent might be willing to lower their fees. Even a small percentage reduction can still result in a sizable commission. Agents may agree to lower their rate to secure the listing when competing with other agents.

When you’re buying and selling with the same agent.
If you’re using one agent (Dual Agency) for both your sale and purchase, they may be open to a package deal.

When You’re doing some of the legwork.
If you’re handling staging, photography, or showing the home yourself, you may ask for a reduced fee.