Is real estate commission the same everywhere?

No. It varies by state, market, and negotiation. The national average is 5.70% of the sale price, but state averages range from 4.50% to 6.20%.

What was the NAR settlement?

A March 2024 settlement of $418 million resolving antitrust lawsuits that alleged NAR rules inflated commissions. It led to new rules, effective August 17, 2024, that removed buyer-agent compensation from the MLS and require buyers to sign a written agreement with their agent before touring homes.

Did commission rates go down after 2024?

Not meaningfully, based on tracked closed transactions. Buyer-agent rates have actually risen slightly, from 2.67% in March 2025 to 2.82% in February 2026. The bigger change has been in how compensation is negotiated and disclosed, not the price itself.

How Real Estate Commission Works

The basics

Real estate commission is a percentage of the home's sale price, paid out of the proceeds at closing. It's not a flat government fee or a fixed industry rate. It's a negotiated fee for the services a real estate agent (and their brokerage) provides: pricing, marketing, showings, negotiation, and paperwork.

Two sides, two agents

Most home sales involve two agents: the listing agent, who represents the seller and lists the home, and the buyer's agent, who represents the buyer. Historically, the seller's listing agreement set one total commission rate, and the brokerage split it with whichever agent brought the buyer, usually through an MLS field called "cooperative compensation." That's the part that changed.

What changed in August 2024

In March 2024, the National Association of Realtors (NAR) settled a set of antitrust lawsuits for $418 million. As part of the settlement, new rules took effect on August 17, 2024:

Listing agents can no longer advertise buyer-agent compensation on the MLS, in public or private remarks.
Buyers must sign a written agreement with their agent, spelling out services and compensation, before touring homes.
Any offer of compensation to a buyer's agent is now negotiated off the MLS: by phone, email, in the purchase contract, or another channel.

In practice, research on closed transactions has found average commissions didn't drop much after the rule change, and buyer-agent rates have actually ticked up slightly (2.67% in March 2025 to 2.82% in February 2026). What changed is less about the price and more about how explicitly it's negotiated and disclosed.

Who actually pays

The seller typically still pays the full commission out of sale proceeds, split between the two agents' brokerages. But since compensation is now negotiated per deal, it's increasingly common for buyers to negotiate paying some or all of their own agent's fee directly, especially in competitive markets or lower-priced homes where the math is tighter.

Where to go from here

Use the real estate commission calculator for the total dollar amount at any rate, the net proceeds calculator to see what you'd actually take home after commission, closing costs, and your mortgage payoff, or check average commission by state to see what's typical where you're selling.

Frequently asked questions

Is real estate commission the same everywhere?: No. It varies by state, market, and negotiation. The national average is 5.70% of the sale price, but state averages range from 4.50% to 6.20%.
What was the NAR settlement?: A March 2024 settlement of $418 million resolving antitrust lawsuits that alleged NAR rules inflated commissions. It led to new rules, effective August 17, 2024, that removed buyer-agent compensation from the MLS and require buyers to sign a written agreement with their agent before touring homes.
Did commission rates go down after 2024?: Not meaningfully, based on tracked closed transactions. Buyer-agent rates have actually risen slightly, from 2.67% in March 2025 to 2.82% in February 2026. The bigger change has been in how compensation is negotiated and disclosed, not the price itself.