What Is a Realtor’s Commission and Why It Matters

Selling a home is one of the most significant financial decisions a homeowner will make. Whether you’re looking to upsize, downsize, relocate, or cash in on market appreciation, the journey usually begins with one important question: How am I going to sell this property? This question triggers a cascade of options—each touting unique advantages, varying service levels, and drastically different costs. The traditional route with a full-service agent remains popular, but homeowner skepticism about high commissions has created demand for alternative solutions.

For homeowners asking, “What is a realtor’s commission?” the answer can dramatically impact your bottom line. The average 5%–6% fee charged on your home’s final sale price can amount to thousands in out-of-pocket expenses. As real estate adapts to a more digital, consumer-centric environment, you no longer need to pay a premium for visibility or negotiation support. There’s power in informed decision-making—and knowing your options is the first step.

This guide explores several popular methods homeowners use to sell their homes today—including the tried-and-true full-service agent, the DIY approach of For Sale by Owner, minimal-cost Flat Fee MLS, and discount brokerages. We’ll dig into how each model works, what it offers, potential drawbacks, and tips to make the choice that best aligns with your goals. Most importantly, we make the case for why Flat Fee MLS, spearheaded by industry innovator Beycome, offers the ideal combination of control, support, and cost-efficiency.

Evaluating Traditional vs. Alternative Home Sale Methods

Homeowners today encounter four major selling pathways: The traditional full-service agent, For Sale by Owner (FSBO), discount brokerage, and Flat Fee MLS listing. Understanding how each method functions is key before deciding how to position your property in the market. The right decision hinges on your level of comfort with negotiation, your ability to manage paperwork, and how price-sensitive you are about commission costs. Each path caters to a unique selling profile.

Let’s start by examining the traditional full-service model. This remains the most popular choice for sellers. A licensed realtor takes on the full listing responsibility—pricing, staging, marketing, negotiations, and paperwork. In return, you’ll typically pay a commission of 5% to 6%, split between your agent and the buyer’s agent. That said, commission is not fixed by law, and sellers can attempt to negotiate. However, most agents are reluctant to budge.

That brings us to the FSBO seller, who skips representation entirely, opting instead to list and promote the home without professional help. FSBO remains appealing because of its potential to eliminate commission completely. Yet, more work shifts to the seller—open houses, buyer interactions, contract-writing, and potential negotiations with lawyers and appraisers. This route suits sellers who already have a buyer lined up or who are comfortable becoming “part-time agents.”

Then there are discount realtors. These agents operate on lower commission percentages, often 1% to 2%, and provide a stripped-down version of traditional service. Some offer streamlined processes via online platforms and minimal in-person interaction. While this can work in markets with high seller demand, it may lack the personalized touch some properties require to fetch top-dollar offers.

What is a Realtors Commission and How Does It Impact Sellers?

When people ask “what is a realtor’s commission,” they usually refer to the fee paid to agents at closing. Typically, this fee is a percentage of the home’s final sale price. Nationwide, commissions average 5%–6%, evenly split between the listing agent and the buyer’s agent. So, if your home sells for $400,000, you might owe $24,000 in total commission—$12,000 to each agent involved.

Understanding how commissions impact your proceeds is vital. That $24,000 comes directly off the top. For many homeowners, this isn’t a trivial amount. It could fund moving expenses, help offset your next down payment, or be reinvested elsewhere. It’s particularly sharp when you recognize that the buyer ultimately pays the full sale price—your portion just gets reduced.

The commission structure was designed in a pre-digital era when agents held exclusive access to property data. Today, with widespread internet listing platforms and publicly available data, that dynamic has changed. Listing agents still perform valuable services—but homeowners are beginning to challenge the default acceptance of traditional fees, especially when viable alternatives exist.

The answer to “what is a realtor’s commission” matters because it invites exploration of options that offer equal exposure and closing support—without surrendering thousands in fees. Homeowners increasingly realize they can sell on their terms, with tools that combine advanced marketing reach and transaction help, minus the bloated costs. That leads us to Flat Fee MLS solutions.

FSBO: The Pure DIY Approach

Selling For Sale by Owner—also known as FSBO—remains the most direct alternative to using a realtor. It entirely removes the listing agent from the process. This model offers complete control over pricing, marketing, and communication with buyers. Most importantly, it gives sellers the opportunity to save the full listing side of a realtor’s commission, or roughly 2.5%–3% of the home’s price.

Sellers pursuing FSBO often rely on free marketing platforms like Craigslist, Facebook Marketplace, or DIY yard signs. They may also leverage affordable tools such as Beycome’s For Sale By Owner resource center. While the savings are real, success with FSBO requires substantial time, effort, and legal knowledge. Without access to MLS, sellers lack presence on databases like Zillow, Trulia, and Realtor.com—cutting visibility drastically.

Furthermore, handling buyer tours, price negotiations, legal disclosures, and closings isn’t simple. A misstep can reduce your home’s value or result in liabilities. FSBO is best for experienced sellers or people with buyers lined-up in advance. Everyone else will find the process time-consuming at best. Still, those committed to DIY gain unparalleled autonomy and keep more of what their home earns.

Services like Beycome’s FSBO platform bridge the gap. They help DIY sellers with tools to manage their sale, reduce mistakes, and improve reach through calculated strategies. You’re not totally alone—but you avoid traditional cost structures.

Discount Brokers: A Cautious Middle Ground

Discount realtors attempt to offer the comfort and credibility of traditional agents with lower commissions. They typically charge 1% to 2% on the listing side, offering limited support compared to full-service agents. Some provide hybrid access to MLS, photo shoots, and occasional consultation calls, but most services are reduced. Marketing is often automated and neighborhoods with challenging price competition may need a more tailored approach.

While these agents help reduce what a realtor’s commission costs you, there are real trade-offs. Homeowners may find communication inconsistent, especially if their representative is juggling many discounted listings. Additionally, many discount brokers restrict service tiers to specific property price ranges, cutting access to some sellers or charging add-ons for upgrades like professional photos or open house coordination.

If you view selling a home as transactional—and you’re in a hot market—discount brokers can be workable. Still, for something more reliable and cost-effective, flat fee models take financial transparency and value further. Rather than a percentage of the sale, you pay one upfront fee and retain control of your sale’s proceeds.

Platforms like Beycome outperform discount models by giving homeowners a suite of tools full-service agents use—MLS listings, buyer inquiry routing, and contract assistance—minus the commission percentage. This puts real equity back in your hands and builds a stronger selling plan.

The Flat Fee MLS Revolution

Flat Fee MLS marks a shift in home-selling economics. With this model, sellers pay a one-time listing fee—often between $99 to $499—to have their property listed on the MLS. This gives their property visibility across real estate sites like Zillow, Realtor.com, and Trulia, without involving a full-service agent in the process.

Once listed, sellers handle buyer interactions directly or opt for added services such as showing assistance or contract support. What the homeowner gains is professional visibility paired with financial independence. This method is ideal for sellers who can manage communication and scheduling. It’s also valuable for homeowners who prefer hands-on involvement with their transaction.

The winning component of Flat Fee MLS lies in its flexibility. Beycome, for instance, offers tailored packages that meet various comfort levels—from raw listings to full end-to-end transaction help. Sellers conserve cash otherwise swallowed by commission and still gain entry to buyer networks. It’s control with compliance, savings with structure. When FSBO lacks reach and agents cost too much, Flat Fee MLS lands perfectly in the middle.

According to data from Beycome, the average homeowner using their Flat Fee MLS service saves approximately $13,185. That amount is not hypothetical—it’s documented. When multiplied over 18,000 homes sold and $213 million saved in commissions, it becomes the new norm in real estate empowerment.

Tips for Success When Choosing Your Home Selling Path

No matter your preferred selling strategy, don’t jump in without preparation. Start by evaluating your schedule, budget, and comfort level with real estate paperwork. If you lack time but want to maximize net earnings, Flat Fee MLS stands as an optimal hybrid. Use a trusted provider like Beycome. It delivers expert-backed support minus the pressure or cost of traditional agents.

Always begin with a clear understanding of value. Tools like Beycome’s home value calculator allow you to smartly price your property. Pricing wrongly—too high or too low—can stall your home on the market. Second, review platforms like Beycome against competitors to understand what sets them apart in this growing space. Their Beycome vs Competitors comparison outlines each feature distinctly.

Lastly, determine how much help you need during the negotiation and escrow stages. The peace of mind that contract guidance brings can prevent headaches or potential loss. Beycome’s customizable menu lets you add services when needed, without locking into an agent commitment upfront.

Choosing how to sell your home isn’t necessarily a binary decision between full-service or DIY. With thoughtful planning and the right service provider, modern homeowners sell smarter and bank more of their equity.

Start Your Sale With Beycome—The Leading Flat Fee MLS Partner

For homeowners wondering “what is a realtor’s commission” and reckoning with high fees that can easily siphon away their hard-earned equity, the answer doesn’t have to be resignation. Flat Fee MLS introduces an intelligent, flexible, and financially responsible pathway to a home sale. And among providers, Beycome consistently stands out as the industry benchmark. With over 18,000 homes closed, more than $213 million in commissions saved, and a property sold every 30 minutes, the numbers speak louder than promises.

Beycome grants you access to the MLS, professional listing exposure, and all the tools to manage your home sale—while keeping you in the driver’s seat. Thousands of homeowners have rated the experience as seamless, rewarding, and empowering. Whether starting fresh or finishing strong, Beycome turns real estate into a transparent process where you keep more by paying less. Ready to list? Explore the platform today by visiting Beycome’s homepage and choose the smarter way to sell.