Realtor Commission Guide 2026: How Agent Fees Work After the NAR Settlement

If you're [selling a home in 2026](/blog/selling-home-guide-2026), the commission conversation looks very different than it did just two years ago. The landmark National Association of Realtors (NAR) settlement that took effect in August 2024 fundamentally changed how real estate agents get paid in the United States.

This guide breaks down exactly how commissions work now, what you're required to pay, what's negotiable, and how to keep more money in your pocket when you sell.

What Changed: The NAR Settlement in Plain English

Before the settlement, the standard practice worked like this: a seller listed their home on the MLS (Multiple Listing Service) and agreed to pay a total commission — typically 5% to 6% of the sale price. That commission was split between the listing agent and the buyer's agent. The split was published on the MLS for all agents to see.

The problem? Sellers were effectively paying for the buyer's agent whether they wanted to or not. And buyers had little reason to negotiate their agent's fee because someone else was footing the bill.

The NAR settlement changed two major things:

1. Offers of buyer agent compensation can no longer appear on the MLS. Sellers can still offer to pay the buyer's agent, but that offer can't be advertised on the listing service.
2. Buyers must sign a written agreement with their agent before touring homes. This agreement spells out exactly what the buyer's agent will be paid and who pays it.

These changes went live on August 17, 2024, and they've had over a year to reshape the market.

How Commissions Actually Work in 2026

What Sellers Pay

As a seller, you negotiate a commission with your listing agent. That's it. You are no longer automatically on the hook for the buyer's agent fee.

Typical listing agent commissions in 2026 range from 2% to 3% of the sale price, though flat-fee and discount brokerages may charge less. On a $400,000 home, that's $8,000 to $12,000.

Here's what that listing agent fee covers:

• Pricing strategy and [comparative market analysis](/blog/how-much-is-my-house-worth)
• Professional photography, staging advice, and marketing
• MLS listing and syndication to Zillow, Realtor.com, etc.
• Showing coordination and open houses
• Negotiation with buyers and their agents
• Transaction management through closing

What Buyers Pay

Buyers now negotiate their agent's fee directly. Before touring homes, they sign a buyer representation agreement that states:

• The services the agent will provide
• How much the agent will be paid (a percentage, flat fee, or hourly rate)
• Who is responsible for that payment

Buyer agent fees in 2026 typically range from 2% to 2.5%, though some agents charge flat fees of $5,000 to $10,000 depending on the market.

Can Sellers Still Pay the Buyer's Agent?

Yes. Nothing in the settlement prevents this. And in practice, many sellers still do — just not through the MLS.

Here's how it works now:

• A buyer's agent submits an offer that includes a request for the seller to cover the buyer's agent commission (or a portion of it).
• The seller can accept, reject, or counter that request as part of normal negotiations.
• The agreement is handled in the purchase contract, not the MLS listing.

Many sellers, especially in competitive markets, still offer buyer agent compensation as a way to attract more buyers. A buyer who doesn't have to pay their agent out of pocket has more purchasing power.

Average Commission Rates in 2026

Commission rates have shifted since the settlement. Here's what the data shows:

These are national averages. Rates vary significantly by market. In high-cost areas like San Francisco or New York, percentage-based commissions translate to enormous dollar amounts, so agents may be more willing to negotiate lower rates. In lower-cost markets, agents may hold firmer on percentages because the dollar amounts are already modest.

How to Negotiate Your Listing Agent's Commission

Commission rates are always negotiable. They are not set by law, by the NAR, or by any brokerage. Here's how to approach the conversation:

1. Get Multiple Quotes

Interview at least three listing agents. Ask each one:

• What is your commission rate?
• What services are included?
• What's your average list-to-sale price ratio?
• How many days do your listings typically sit on market?

Having competing offers gives you leverage.

2. Consider the Full Package

A 2% agent who provides minimal marketing may cost you more than a 2.5% agent whose professional photography and pricing strategy nets you a higher sale price. Evaluate the total value, not just the fee.

3. Use Your Home's Strengths

If your home is in a hot market, priced well, and likely to sell quickly, that's less work for the agent. Use that as a negotiation point. An agent who can turn over a listing in two weeks may accept a lower rate because their per-hour earnings are still strong.

4. Ask About Tiered Structures

Some agents will agree to a lower base commission with a bonus if the home sells above a certain price. For example: 2% commission, plus 10% of anything above the asking price. This aligns incentives.

5. Explore Flat-Fee and Discount Options

Flat-fee MLS services charge $300 to $500 to list your home on the MLS while you handle everything else. Discount brokerages like Redfin have offered listing fees as low as 1% to 1.5%. These work well for experienced sellers in strong markets.

Should You Offer to Pay the Buyer's Agent?

This is the big strategic question in 2026. Here are the factors to consider:

Arguments for Offering Buyer Agent Compensation

• Wider buyer pool. Many buyers, especially first-time buyers, are cash-strapped. If they have to pay their agent 2.5% on top of their down payment and closing costs, some will either skip using an agent (and may not find your home) or won't be able to afford your price point.
• Faster sale. Homes that offer buyer agent compensation still tend to sell faster, all else being equal.
• Competitive advantage. If comparable homes in your area are offering buyer agent compensation and you're not, buyers' agents may steer clients toward those listings.

Arguments Against

• You keep more money. On a $500,000 home, not paying the buyer's agent saves you $10,000 to $12,500.
• Strong markets don't need it. If your home is priced right in a hot market, buyers will come regardless.
• Buyers can finance it. Some lenders now allow buyer agent fees to be rolled into the mortgage, reducing the out-of-pocket burden.

The Middle Ground

Many sellers in 2026 offer a partial buyer agent credit — say, 1% to 1.5% — rather than the traditional 2.5% to 3%. This keeps the home attractive to buyers while reducing the seller's total cost.

What About FSBO ([For Sale By Owner](/blog/fsbo-guide))?

Selling without any agent — a true FSBO — saves you the listing commission entirely. About 7% to 10% of homes sell this way each year, according to NAR data.

However, FSBO homes sell for less on average. The 2023 NAR Profile of Home Buyers and Sellers found that FSBO homes sold for a median of $310,000, compared to $405,000 for agent-assisted sales. Some of that gap reflects differences in the homes being sold, but studies consistently show a pricing penalty for FSBO listings.

If you go FSBO, you'll need to handle:

• Pricing (get a professional appraisal — $300 to $500)
• Photography and marketing
• Showings and open houses
• Offer evaluation and negotiation
• Contract paperwork and legal compliance
• Coordinating inspections, appraisal, and closing

Even FSBO sellers may still face requests from buyer agents for compensation. You can negotiate this on a case-by-case basis.

Commission on Different Price Points

To put the numbers in perspective:

$300,000 home:

• Listing agent at 2.5%: $7,500
• Buyer's agent at 2.5%: $7,500
• Total if seller pays both: $15,000

$500,000 home:

• Listing agent at 2.5%: $12,500
• Buyer's agent at 2.5%: $12,500
• Total if seller pays both: $25,000

$750,000 home:

• Listing agent at 2.5%: $18,750
• Buyer's agent at 2.5%: $18,750
• Total if seller pays both: $37,500

Even small percentage reductions add up fast. Negotiating your listing agent from 3% to 2.5% on a $500,000 home saves $2,500. Getting the total commission from 5.5% to 4.5% saves $5,000.

Common Commission Myths

"Commissions are standard at 6%"

They never were. The 6% figure was common but never mandatory. In 2026, total commissions averaging 4% to 5% are the norm.

"You can't negotiate commission"

You absolutely can. Agents set their own rates. Everything is negotiable.

"Discount agents provide worse service"

Some do, some don't. Evaluate the specific agent's track record, not the brokerage's pricing model.

"Buyers' agents will boycott your listing if you don't offer compensation"

Steering buyers away from listings is an ethics violation. In practice, some agents may be less enthusiastic about showing your home, but outright boycotts are uncommon and reportable.

"The NAR settlement made commissions go away"

No. Agents still get paid. The settlement changed who pays and how fees are disclosed — it didn't eliminate commissions.

Frequently Asked Questions

How much does a realtor charge to sell a house in 2026?

Listing agent commissions typically range from 2% to 3% of the sale price. If the seller also agrees to pay the buyer's agent, total commissions usually fall between 4% and 5%. On a $400,000 home, that's $16,000 to $20,000 total.

Do I have to pay the buyer's agent's commission?

No. Since the NAR settlement took effect in August 2024, sellers are not required to pay the buyer's agent. However, many sellers still choose to offer some level of buyer agent compensation as a negotiation tool to attract more buyers.

Can the buyer's agent commission be rolled into the mortgage?

Some lenders and loan programs now allow buyer agent fees to be financed as part of the mortgage. This is still evolving, and not all lenders offer it. Buyers should ask their lender about this option.

What's the difference between a listing agent and a selling agent?

The listing agent represents the seller. The selling agent (also called the buyer's agent) represents the buyer. Despite the confusing name, the "selling agent" is on the buyer's side.

Are flat-fee real estate agents worth it?

For sellers who are comfortable handling showings, negotiations, and paperwork, flat-fee MLS listings ($300 to $500) can save thousands. For sellers who want full service at a lower cost, discount brokerages charging 1% to 1.5% can be a good middle ground. The right choice depends on your experience and how much time you can invest.

How do I know if my agent's commission is fair?

Interview multiple agents, compare their rates and services, and check their recent sales history. A fair commission is one where the agent's services justify the cost relative to alternatives in your market.

The Bottom Line

The real estate commission landscape in 2026 is more transparent and more negotiable than ever. As a seller, you have real leverage — use it. Get multiple agent quotes, understand what you're paying for, and make a strategic decision about whether to offer buyer agent compensation based on your market conditions and timeline.

The NAR settlement didn't eliminate commissions, but it put sellers in the driver's seat. Take advantage of that.

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