For decades, home sellers typically covered both their own agent\u2019s commission and the fee for the buyer\u2019s broker, a structure that left little room for negotiation. But a recent legal settlement has shaken up that system, opening the door for buyers and sellers to haggle over who pays what \u2014 and how much.
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\nIn the Bay Area, many agents ask for a 2.5% or 3% commission \u2014 a rate they say is justified given their experience and market knowledge, and the time they take to help clients navigate the process of buying and selling a home. Agents may also face pressure from brokerages,\u00a0which may receive anywhere between 15% to 30% of that commission, to keep fees close to 2.5%.<\/p>\n
Although some agents don\u2019t budge on their rates, some will under the right circumstances. To strengthen their hand in negotiations, buyers and sellers need to understand how the commission structure works and what factors influence an agent\u2019s willingness to negotiate.<\/p>\n
Here are some strategies that buyers and sellers can use to negotiate commissions with their real estate agent:<\/p>\n
Matt Castillo, an East Bay agent, said that part of the reason agents set their fees around 2.5% is because it\u2019s so uncertain whether their client will actually close \u2014 and the agent will get paid. \u201cYou might be working with someone for a year, and they may never buy,\u201d he said.
\nAs a buyer, show an agent that you\u2019ll make their time worthwhile. Get preapproved for a loan. Make sure you understand your budget and how much home you can afford. If an agent feels that you\u2019re likely to buy a home with them, they may be more willing to negotiate.
\nAs a seller, make it clear that you\u2019re motivated to sell, so that the agent doesn\u2019t think there\u2019s a risk that you\u2019ll take the property off the market.<\/p>\n
Some buyers want their agent to come along to every showing. Others want someone who will come in at the end and help negotiate the price. If you don\u2019t need an agent who will hold your hand, tell them.
\nThe same goes for sellers \u2014 if you\u2019re handling certain parts already, like the staging or the photos, you may be able to get a price reduction.
\n\u201cThat\u2019s a good way for clients to negotiate, is defining what services they need from an agent,\u201d said Kyle Henry, an agent in Burlingame.<\/p>\n
If you\u2019re buying or selling a more expensive property, you may be able to reduce your fee since the agent\u2019s overall payout will be larger.<\/p>\n
If you\u2019re selling one home and buying a new one with the same agent, they may reduce their fee, since they earn two commissions.<\/p>\n
Knowing the market and what others charge will put you in a better position to negotiate.<\/p>\n
Stephen Brobeck, senior fellow at the Consumer Policy Center, a consumer advocacy group, had advice for buyers and sellers.
\nIf an agent insists that their fee doesn\u2019t matter because the sellers are the ones who pay, push back. Buyers should ask, \u201cWon\u2019t that put my offer at a disadvantage if another buyer has successfully negotiated a lower rate?\u201d he said.
\nSellers should instruct the agent not to offer a specific rate to inquiring buyer agents, and simply say it is negotiable. Then offer a rate a half a percentage point below what the buyers ask, Brobeck said. \u201cMany buyer agents will accept that, and they will amend their agreement with the buyer.\u201d<\/p>\n
Negotiating commissions with a real estate agent requires a strategic approach. By showing that you\u2019re serious, defining how much help you need, considering the price of the property, using the same agent for multiple transactions, shopping around, and pointing out that you don\u2019t want to be at a disadvantage to others who do negotiate, you can strengthen your hand in negotiations and potentially reduce your commission fees.<\/p>\n
Q: Can I negotiate the commission rate with my real estate agent?
\nA: Yes, you can negotiate the commission rate with your real estate agent. While some agents may not budge on their rates, others may be willing to negotiate under the right circumstances.
\nQ: How can I strengthen my hand in negotiations?
\nA: You can strengthen your hand in negotiations by showing that you\u2019re serious, defining how much help you need, considering the price of the property, using the same agent for multiple transactions, shopping around, and pointing out that you don\u2019t want to be at a disadvantage to others who do negotiate.
\nQ: Will my agent reduce their fee if I\u2019m buying or selling a more expensive property?
\nA: Yes, if you\u2019re buying or selling a more expensive property, your agent may be willing to reduce their fee since their overall payout will be larger.
\nQ: Can I use the same agent for multiple transactions to reduce my commission fees?
\nA: Yes, using the same agent for multiple transactions can help reduce your commission fees, since the agent will earn two commissions.
\nOriginally Published: September 24, 2025 at 1:35 PM EDT<\/p>\n","protected":false},"excerpt":{"rendered":"
Introduction to Commission Negotiation For decades, home sellers typically covered both their own agent\u2019s commission and the fee for the buyer\u2019s broker, a structure that left little room for negotiation. But a recent legal settlement has shaken up that system, opening the door for buyers and sellers to haggle over who pays what \u2014 and […]<\/p>\n","protected":false},"author":4,"featured_media":20554,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[23],"tags":[],"class_list":{"0":"post-20552","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-real-estate"},"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.sun-sentinel.com\/wp-content\/uploads\/2025\/09\/20160519__openhouse11.jpg?w=1400px&strip=all&w=645&resize=645,436&ssl=1","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/citystuff.com\/miami\/wp-json\/wp\/v2\/posts\/20552"}],"collection":[{"href":"https:\/\/citystuff.com\/miami\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/citystuff.com\/miami\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/citystuff.com\/miami\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/citystuff.com\/miami\/wp-json\/wp\/v2\/comments?post=20552"}],"version-history":[{"count":1,"href":"https:\/\/citystuff.com\/miami\/wp-json\/wp\/v2\/posts\/20552\/revisions"}],"predecessor-version":[{"id":20555,"href":"https:\/\/citystuff.com\/miami\/wp-json\/wp\/v2\/posts\/20552\/revisions\/20555"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/citystuff.com\/miami\/wp-json\/wp\/v2\/media\/20554"}],"wp:attachment":[{"href":"https:\/\/citystuff.com\/miami\/wp-json\/wp\/v2\/media?parent=20552"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/citystuff.com\/miami\/wp-json\/wp\/v2\/categories?post=20552"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/citystuff.com\/miami\/wp-json\/wp\/v2\/tags?post=20552"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}