Selling a home comes with a unique mix of excitement and anxiety. There’s the thrill of moving forward and the stress of preparing your home for the market. One detail that often catches sellers by surprise is the amount they’ll pay in commission fees. These fees—typically tied to the cost of the home—can make a significant dent in your final earnings if you’re not careful. Understanding how the commission on selling a home works, who gets paid, and what your options are can help you plan smarter and save thousands.
Whether you’re selling a city condo or a rural property, commission structures follow a fairly standard model but leave room for negotiation and alternatives. By learning how the system works and weighing your choices carefully, you can walk away from the closing table with more money in your pocket and far fewer regrets. Let’s take a closer look at how real estate commissions are structured and what sellers can do to limit their impact without cutting corners.
How Real Estate Commissions Work
The traditional commission on selling a home typically falls around 5% to 6% of the final sale price. This amount is typically split between the seller’s agent (listing agent) and the buyer’s agent, with each receiving half. That means if your home sells for $400,000, you’re likely handing over between $20,000 and $24,000 in commissions alone. Many home sellers find this figure surprisingly high considering how quickly homes can move off the market today.
These commissions cover a wide range of services, but not all are visible to the seller. A listing agent may offer help staging the home, negotiating offers, handling contract paperwork, and guiding you through inspection and repair negotiations. Buyer’s agents, in turn, work to find suitable properties, schedule showings, and advocate for their clients’ interests. While both roles are valuable, they don’t always reflect the best return on investment for every seller.
Real estate agents are paid only when the sale closes, meaning their motivations are closely tied to performance. However, sellers should be aware that this model may still incentivize speed over strategy, especially in hot markets. Choosing the right representation and commission structure can prevent wasted time, costly delays, or pressure to accept subpar offers just to wrap up a deal quickly.
The Pros and Cons of Paying Traditional Commissions
Paying the full commission amount comes with distinct advantages. For one, a seasoned agent can offer expertise, access to market data, and connections that may lead to quicker or more lucrative sales. When inventory is tight or buyers are picky, this support can give sellers an essential edge. In some situations, it’s worth the cost.
On the other hand, traditional commissions significantly cut into your bottom line—especially if you’ve built substantial equity. Many services provided by agents are now supplemented or replaced by digital tools, empowering sellers to manage much of the process themselves. For instance, online listing platforms and automated valuation tools allow homeowners to research prices and reach buyers without paying thousands in fees.
One major downside is the lack of flexibility in commission rates. While these rates are “negotiable” in theory, many agents are locked into brokerage-set minimums or may be reluctant to budge. Sellers might find themselves paying for services they don’t use or value. As noted by the experts at Consumer Financial Protection Bureau, understanding the true cost of these services is key to making informed financial decisions.
Alternative Ways to Sell Your Home and Save on Commission
Given the cost implications, some sellers opt for alternatives to traditional real estate representation. For Sale By Owner (FSBO), flat-fee MLS services, and hybrid brokerage models are gaining popularity. Each of these lets sellers retain more control—and more of their profits—while minimizing or eliminating large commissions.
FSBO involves marketing and negotiating the sale on your own. This route typically appeals to confident sellers in familiar or fast-moving markets. While it saves commission fees, it also places the burden of legal and procedural steps squarely on the owner. Sellers must handle disclosures, contracts, and negotiations without professional backup.
Flat-fee MLS services offer a balanced middle ground. These tools list your property on the Multiple Listing Service—a resource usually only agents can access—for a low, fixed price. Sellers gain visibility and can choose a-la-carte services without handing off control or a big chunk of their sale price. Many find that this model delivers the exposure they need without the commission bloat.
The growth of online marketplaces and guidance from verified resources have made FSBO and flat-fee options safer and easier than ever. According to data from National Association of Realtors, roughly 10% of home sales are FSBO, and more sellers are exploring smarter, tech-enabled selling solutions each year.
What Should You Ask Before Agreeing to a Commission?
Before agreeing to a commission structure, smart sellers ask direct questions. Start by confirming what exactly is included in the agent’s fee. Are they providing professional photography, digital marketing, open house support, or just listing the home? The answer will help you determine whether the commission reflects real value or just tradition.
Next, don’t hesitate to ask about experience and track record. Agents with a high closing rate and strong local knowledge can be worth the fee, but only if you feel confident in their strategy. Others may be newer to the scene, using boilerplate tactics or leaning heavily on third-party partners. Context matters, especially when large sums are on the line.
Also, don’t forget that commission rates are negotiable under federal law. As confirmed by the USA.gov portal, consumers have every right to compare agents and request adjustments based on the home, current market, or competition across brokerages. Sellers often feel pressured to accept standard rates—but informed negotiation can save thousands.
Lastly, consider requesting a net sheet that breaks down all anticipated costs and proceeds. Some sellers only discover hidden fees or transaction charges after accepting an offer, shrinking their expected gains. Transparency upfront ensures your agent is serving your interests and not just chasing a bigger number on their check.
Should You Skip the Commission and List with Beycome?
When you’re ready to sell your home, you deserve a better option than handing over 6% in commission. With Beycome, sellers can list their homes on the MLS using a flat-fee structure that cuts out bloated commissions. In fact, Beycome sellers save an average of $13,185 by managing key decisions while still gaining access to robust support and marketing tools. With over $213 million in total commission savings and more than 18,000 homes successfully closed, it’s clear that empowered selling works—especially when every dollar counts.
Unlike traditional agents, Beycome lets you control your sale while providing optional tools like a Comparative Market Analysis using our CMA calculator and access to the MLS via our flat-fee listing service. If you’d rather bypass the expense of hiring a full-service agent and still reach motivated buyers, our platform bridges that gap. Learn more about how Beycome’s model outpaces other flat-fee MLS competitors and helps you keep more of your hard-earned equity where it belongs—with you.