The commission comes off the sale price, then splits two ways
Commission is figured on the gross sale price, not on your proceeds after the mortgage payoff. A ~5.5% total is usually split evenly: half to the listing (seller\'s) agent, half to the buyer\'s agent. On a $400,000 sale at 5.5% that is $22,000 total, $11,000 per side.
What a sale actually costs at each rate
| Sale price | At 5% | At 5.5% | At 6% |
|---|---|---|---|
| $300,000 | $15,000 | $16,500 | $18,000 |
| $400,000 | $20,000 | $22,000 | $24,000 |
| $500,000 | $25,000 | $27,500 | $30,000 |
| $750,000 | $37,500 | $41,250 | $45,000 |
| $1,000,000 | $50,000 | $55,000 | $60,000 |
Half a point on a $500,000 home is $2,500 — which is why the rate is worth negotiating. Luxury properties above $2M often settle at 4 to 5%.
Two splits, not one
The commission passes through two divisions before anyone banks it. First between the two sides, then between each agent and their brokerage.
- Side split. Usually 50/50 between the listing and buyer\'s agents, though it can be set 60/40 or otherwise by agreement.
- Broker split. Each agent hands their brokerage a cut — commonly 30%, less for high producers. So a 3% side becomes about 2.1% take-home at a 70/30 split.
- What changed in 2024. Buyer-agent pay is no longer posted on the MLS and buyers now sign written fee agreements. Rates did not fall; the 2025 average rose to about 5.7%.
Common questions
Who pays the real estate commission?
The seller does, out of the sale proceeds at closing. The full fee has traditionally covered both the listing agent and the buyer's agent. Since the 2024 NAR settlement the buyer's side is negotiated separately, but the seller still commonly agrees to pay it to attract buyers.
Is a 6% commission required?
No. Rates are negotiable and always have been. Six percent was an informal industry default, not a rule. The 2025 national average is closer to 5.5 to 5.7%, and lower rates are common in competitive urban markets.
How much does the agent actually keep?
Less than their side of the commission. Each agent splits their share with their brokerage, commonly 70/30. On a 3% listing side, a 70/30 split leaves the agent 2.1% and the broker 0.9%.
