During a typical home sale — with real estate agents representing both the seller and the buyer — a percentage of the proceeds are paid to real estates agents in the form of real estate commissions.
We surveyed agents across the country and found that the average real estate commission to be approximately 5.45% nationwide. However, we also found that rates could vary by as much as 17%, depending on where you live.
How Real Estate Commissions Work
In a real estate transaction, real estate agent commissions are effectively paid by the home seller, as they represent a portion of the home's sale price that would otherwise be part of the net proceeds from the sale.
In terms of actual costs, real estate agent fees can range from a few thousand to tens of thousand of dollars depending on how much a home sells for. Here's how commission costs breakdown by home sale price:
|Home Sale Price||Real estate commission cost*|
* Assuming a real estate commission rate of 5.45%
It's important to note that commission rates are completely negotiable. So while there may be regional trends in how much an agent might typically charge, the actual rate you pay as a home seller is negotiated between you and your realtor.
Average Real Estate Commission Rates by State
Our research found that commission rates can vary dramatically depending on your location. For example, we found that average commission rates in California were nearly a full percentage point lower than those in Wisconsin, with rates of 5.01% and 5.85% respectively. These states had the lowest and highest average realtor fees according to our survey.
Find your state below to learn more about commission rates near you.
Factors That Affect Real Estate Commissions
In addition to what state you live in, there are a number of factors that can influencen commission rates, including the condition of the real estate market in your area and what your life circumstances are. Based on our survey, here are some of the most common reasons that real estate agents accept lower commission rates:
Understanding which factors influence the amount a real estate agent agent will charge for their services can help you:
- Understand if an agent if offering you a good deal
- Help you negotiate a lower commission rate
Data on commission rates is based on a survey of 521 of our partner agents, in which we asked them to indicate the typical rates for both buyer's and seller's agents in their area. The data featured on this page is not meant to imply that commission rates are fixed — commissions rates are always negotiable. These figures are meant to represent a ballpark estimate of what home sellers can expect to pay in real estate agent fees when they sell their home.