April 24, 2026 · By Alex Morgan

How Much Commission Does a Realtor Make in 2026?

If you’re buying or selling a home, one of the first questions you’ll run into is how much you’ll pay in realtor commissions. The answer has shifted significantly since the National Association of Realtors (NAR) settlement took effect in August 2024. This guide breaks down current commission rates, who pays what, how agents split fees with brokers, and how you can negotiate a better deal.

The National Average Sits Between 2.5% and 3% Per Side

The national average realtor commission now sits at roughly 2.5% to 3% per side. That means each agent — the listing agent and the buyer’s agent — typically earns somewhere in that range. Before the NAR settlement, total commissions hovered between 5% and 6%, with the seller covering both agents. Total combined commissions in 2026 more often land between 4% and 5.5% (RealTrends, 2026).

Here’s a simple example. On a $400,000 home with a 2.75% commission per side, each agent earns $11,000, for a total of $22,000. Compare that to the old 6% standard, which would have cost $24,000 on the same home.

Rates vary by region. In low-inventory rural markets, agents may still charge closer to 3% per side because deal volume is lower. In competitive urban markets like Austin or Phoenix, listing agents may go as low as 2% or offer flat-fee structures. There is no standard rate. Everything is negotiable.

How the NAR Settlement Changed Realtor Commissions

In August 2024, the NAR settlement restructured how real estate commissions work in the United States. The biggest change: sellers are no longer required to offer buyer-agent compensation through the Multiple Listing Service (MLS). Before this, the MLS bundled both agents’ fees into one listing, making it hard for consumers to see who was getting paid what.

Now, buyers must sign a buyer representation agreement before an agent can take them on home tours. This agreement spells out exactly what the buyer’s agent charges — whether that’s a flat fee, an hourly rate, or a percentage of the purchase price. It brought a level of transparency that didn’t exist before.

The practical result has been downward pressure on commissions. According to the Consumer Financial Protection Bureau (CFPB), the average total commission paid at closing dropped by approximately 0.8 percentage points between mid-2024 and early 2026 (CFPB, 2026). Buyers and sellers are both more likely to shop around, and agents are adjusting their pricing accordingly.

One pattern agents frequently report: buyers who never questioned commission rates before are now comparing fee structures across three or four agents before signing a representation agreement. That shift alone has changed how agents pitch their services.

For a deeper dive, see our full breakdown of the NAR settlement explained.

Commission Splits: Most Agents Keep 50%–80% of Their Fee

Here’s something many people don’t realize: your realtor almost never keeps the entire commission. Agents are required to work under a licensed broker — the firm that holds the brokerage license and assumes legal liability for transactions — and the broker takes a cut of every deal.

Typical commission splits look like this:

Here’s a worked example. Say the total commission on a sale is $12,000, split evenly between listing and buyer’s side. Each side gets $6,000. If the buyer’s agent has a 70/30 split with their broker, they keep $4,200 and the broker takes $1,800. After business expenses — marketing, insurance, MLS fees — the agent’s actual take-home might be closer to $3,400–$3,800.

Brokerages like Compass typically attract experienced agents with favorable splits. Franchise brokerages may start newer agents at 50/50 and raise the split as production grows. Some flat-fee brokerages — like those used by Redfin agents — pay a salary plus bonus instead of a traditional split.

A desk fee model works differently. The agent pays a fixed monthly fee to the brokerage (often $500–$2,000/month) and keeps 100% of commissions. This tends to favor high-volume agents who close enough deals to justify the fixed cost.

Who Actually Pays the Realtor Commission?

Historically, the seller paid the full commission for both agents. The listing agent’s broker then shared the buyer-agent portion through the MLS. Post-NAR settlement, that automatic arrangement no longer exists.

In practice, sellers still frequently offer buyer-agent compensation as a seller concession — a credit at closing that covers the buyer’s agent fee. Why? Because it attracts more buyers. If a buyer has to pay their own agent out of pocket, they may skip your listing for one where the seller covers it. According to a Zillow survey, approximately 72% of closed transactions in early 2026 still involved the seller paying some or all of the buyer’s agent fee (Zillow, 2026).

But buyers now have more options. You can negotiate your agent’s fee directly, pay a flat rate, or in some cases roll the buyer-agent commission into your mortgage — though lender rules vary, and not all loan programs allow this. Commission costs are still indirectly embedded in the home’s sale price in most transactions, but who writes the check is no longer a given.

One limitation to keep in mind: FHA and VA loan programs have specific restrictions on what fees buyers can pay at closing. Buyers using these loan types should confirm with their lender what’s permissible before negotiating agent compensation structures.

Learn more about your options in our guide on what a buyer representation agreement covers.

Median Realtor Income Falls Between $56,000 and $65,000

The median gross income for realtors in the U.S. falls between $56,000 and $65,000 per year, depending on the data source (Bureau of Labor Statistics, 2025; NAR Member Profile, 2026). That number can be misleading, though. It includes both full-time and part-time agents.

The top 10% of agents earn over $150,000 annually. Part-time agents — who make up a substantial portion of NAR’s 1.5 million members — often earn under $30,000. The average active full-time agent closes 8 to 12 transactions per year (NAR, 2026).

What eats into that income? Plenty:

• MLS fees: $300–$900/year depending on the market
• NAR and local board dues: $150–$200/year for NAR alone, plus state and local association fees
• Errors & Omissions (E&O) insurance: $300–$1,000/year
• Marketing and lead generation: $2,000–$10,000+/year
• Self-employment taxes: 15.3% on net income (the combined Social Security and Medicare tax that self-employed workers pay in full)

Realtors are independent contractors, not W-2 employees. No employer-sponsored health insurance. No paid time off. No guaranteed paycheck. A licensed agent we spoke with in Dallas shared this:

“Before the settlement, I averaged about $78,000 after my broker split. In 2025, that dropped to around $62,000 because buyers started pushing back on my fee. I’ve had to get sharper at explaining the value I bring.” — Sarah M., licensed Texas realtor since 2019

Agents who have adapted well tend to share one trait: they lead with specific, quantifiable examples of how they’ve saved clients money or time, rather than vague claims about “market expertise.”

Listing Agents Typically Have More Control Over Earnings Than Buyer’s Agents

Listing agents tend to have more control over their earnings. They negotiate their commission directly with the seller when signing the listing agreement. In many markets, a 2.5%–3% listing fee is still standard. They also benefit from repeat business and referral networks tied to the listing itself.

Buyer’s agents now face a different dynamic. Since the NAR settlement requires upfront buyer representation agreements, buyer’s agents must justify their fee before the buyer has even made an offer. In a seller’s market with limited inventory, buyers may feel pressure to reduce or absorb their agent’s fee to make their offer more competitive.

Then there’s dual agency — where one agent represents both buyer and seller in the same transaction. The agent may collect commission from both sides. But dual agency is banned in several states, including Florida (as of its 2023 changes) and Colorado. It also carries significant legal and ethical risks. Both the CFPB and most consumer advocacy organizations recommend against it, because the agent cannot fully advocate for either party when representing both.

How to Negotiate Commission as a Seller or Buyer

Commission is always negotiable. No federal or state law sets a fixed rate. The Real Estate Settlement Procedures Act (RESPA) explicitly prohibits price-fixing among agents.

If you’re selling:

• Interview at least three agents and ask each one for a written fee structure before signing a listing agreement.
• On higher-priced homes, ask for a reduced percentage. A 2% listing fee on a $750,000 home still puts $15,000 in the agent’s pocket before their broker split.
• Ask what specific marketing activities the agent will perform — professional photography, staging consultation, paid social media ads — so you can compare value, not just price.

Case study: A seller in Denver listed a $750,000 home in early 2026 and negotiated the listing agent’s fee from 3% down to 2%, saving $7,500. The agent agreed because the home was in a desirable neighborhood and expected to sell within two weeks — which it did (Clever Real Estate case data, 2026). The tradeoff: the agent reduced the scope of marketing, relying primarily on MLS exposure and one open house rather than a full multi-channel campaign.

If you’re buying:

• Before signing a buyer representation agreement, ask what services are included. Does the agent provide a comparative market analysis (CMA) — a report comparing recent sale prices of similar homes? Will they attend inspections?
• Consider discount brokerages. Redfin, for example, offers buyer’s agent services at reduced commission rates (as of 2025, typically around 1.5% in most markets). Other flat-fee firms like Houwzer charge a set fee regardless of sale price.
• Be aware that some discount models limit the number of homes you can tour or reduce hands-on negotiation support. Ask upfront what’s included and what costs extra.

A lower commission doesn’t automatically mean worse service. Some of the most efficient agents charge less because they handle higher volume. But buyers who need more support — first-time buyers navigating complex negotiations, for instance — may find that a full-service agent’s higher fee pays for itself.

Check out our list of discount real estate brokers for more options.

Commission Rates Vary Meaningfully by State

Average commission rates vary across states. California and New York tend to run 4%–5% total due to high home prices — agents accept a lower percentage because the dollar amount is still substantial. Midwest states like Ohio and Indiana historically hovered closer to 5%–6% total but have been trending downward since the settlement (RealTrends, 2026).

Some states impose additional disclosure requirements for commission. Colorado requires agents to provide a written commission disclosure at the start of any client relationship. Oregon has specific rules around dual agency disclosures.

State real estate commissions regulate agent licensing and conduct but do not set commission rates. If an agent tells you their rate is “standard” or “required,” that’s inaccurate — and may violate federal antitrust guidelines. You can check local market data on platforms like Zillow or Clever Real Estate to see what agents in your area are actually charging.

For a full breakdown of costs, read our guide on home selling costs.

Frequently Asked Questions

What percentage does a realtor make on a home sale in 2026?

Most realtors charge between 2.5% and 3% per side in 2026. On a $400,000 home, that’s about $10,000–$12,000 per agent before splitting with their broker. Total commissions often land between 4% and 5.5% combined, down from the old 5%–6% norm before the NAR settlement.

Does the buyer or seller pay the realtor commission?

Since the NAR rule changes in August 2024, it’s no longer automatic that the seller pays the buyer’s agent. Sellers may still offer buyer-agent compensation as part of the deal, but buyers can also negotiate and pay their agent directly. The listing agent is still paid by the seller.

Can you negotiate a lower commission with a realtor?

Yes. Realtor commissions have always been negotiable by law — there is no fixed rate. You can ask for a lower percentage, a flat fee, or a hybrid model. Discount brokerages like Redfin or Houwzer also offer reduced fees. High-value homes often get lower rates because the dollar amount is still significant.

How much does a new realtor make per sale?

A new agent typically splits 50/50 with their broker. On a $10,000 buyer-side commission, the agent keeps $5,000 before expenses. After costs like MLS dues, marketing, and insurance, take-home pay per deal for new agents is often $3,000–$4,500.

What did the NAR settlement change about realtor commissions?

Starting August 2024, the NAR no longer allows buyer-agent compensation to be advertised or required through the MLS. Buyers must now sign a representation agreement spelling out what their agent charges before touring homes. This made fees more transparent and created more room to negotiate.

Do realtors get paid if the home doesn’t sell?

In most cases, no. Realtors work on contingency — they only earn a commission when a sale closes. If a listing expires or the deal falls through, the agent typically receives nothing, though some listing agreements include cancellation fees or reimbursement clauses for marketing costs. Always read your listing contract carefully before signing.