Real Estate

Since 17 August 2024 a buyer must sign a written agreement before touring a home, and that agreement has to state the agent's compensation as an actual number rather than an open-ended term. Total commission now averages about 5.7 percent of the sale price, down from the traditional 6. Two years after the change, 45 percent of sellers surveyed still did not know the old rule had gone.

Checked Sep 2026

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Checked Sep 2026

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What it costs

ServiceTypical
Total real estate commission, both sidesNational average$6 percent of sale price
Buyer's agent commissionNational average, transaction data$2 percent of sale price
Property management feeNational range, long-term residential$8 to $12 percent of monthly rent
Cash offer from an investorNational range$70 to $75 percent of after-repair value, before repairs are deducted

Ranges last checked September 2026. They come down automatically when they are due to be rechecked.

Total real estate commission, both sides

What moves the price

  • Sale price tier: rates compress as the price rises
  • Whether the seller agrees to cover the buyer's agent at all, which is now a separate negotiation
  • Local market competitiveness and expected days on market
  • Property type
  • Whether you ask: 37 percent of recent sellers and 27 percent of recent buyers tried to negotiate

Usually included

  • Listing side: marketing, pricing strategy, negotiation, closing support

Quoted separately

  • The buyer's agent fee, which is no longer automatically covered by the seller
  • Seller-paid closing cost concessions
  • Brokerage transaction and admin fees
  • Staging, photography and pre-listing repairs
  • Title and escrow

Buyer's agent commission

What moves the price

  • Price tier, and this one is measurable: homes over $1m averaged 2.17 percent, $500k to $999k averaged 2.29 percent, under $500k averaged 2.49 percent
  • Whether the seller offers to cover it
  • What the buyer negotiated into the written agreement before touring

Usually included

  • The buyer's agent's work through to closing

Quoted separately

  • Anything on the listing side
  • Closing costs

Property management fee

What moves the price

  • Percent of rent against a flat per-unit fee
  • Single-family against multifamily, which runs 4 to 12 percent, against short-term rental, which runs 25 to 40 percent
  • Property age and condition, which drives how much maintenance coordination there is
  • Number of units under one contract
  • Local competition

Usually included

  • Rent collection
  • Tenant communication
  • Maintenance coordination
  • Accounting

Quoted separately

  • Leasing or tenant placement, 50 to 100 percent of one month's rent
  • Lease renewal, $100 to $500
  • Setup or onboarding, $200 to $500
  • Inspections, $75 to $300
  • Maintenance markup, 5 to 15 percent of the repair cost
  • Eviction handling, $200 to $1,000 and up plus legal costs
  • Vacancy and early termination fees

Cash offer from an investor

What moves the price

  • Condition and the scope of repairs, which are then subtracted from the offer
  • After-repair value in that particular submarket
  • Holding cost assumptions: carrying, utilities, taxes
  • The investor's target margin
  • How fast you need to close

Usually included

  • No agent commission
  • No repairs required of you
  • No staging or showings
  • Closing in roughly 7 to 21 days

Quoted separately

  • The repair cost, which comes off the percentage rather than being covered by it
  • iBuyer service fees, which run about 5 percent on top of repair deductions
How do we know these prices?

Every figure above comes from a named source we can link to, with the date we last checked it. We publish ranges rather than single prices because a range is what a provider will actually give you: the same job moves with what is being worked on, the materials, how hard it is to get at and how busy the trade is locally. Treat these as the order of magnitude to expect before you call, not as a quote.

The figures here are national. Where a source publishes figures state by state, the state pages carry that local figure instead of this one. We do not scale a national number by a multiplier of our own invention.

Every range carries a review date. When that date passes the number comes down until it is rechecked, rather than sitting here undated.

  • Clever February 2026 survey of 533 partner agents checked September 2026This is agent-reported survey data, not recorded transactions. Only 14 percent of surveyed sellers actually paid a full 6 percent, while 38 percent believed 6 percent was still standard.
  • Redfin, Q1 2025 aggregated transaction data checked September 2026Released 16 May 2025 and the freshest transaction-based figure available. Redfin measured 2.43 percent before the settlement took effect and 2.40 percent after, and concluded commissions have not changed much. Note that this is 2025 data.
  • DoorLoop and Baselane 2026 property management fee guides checked September 2026The largest published sample, covering 80 metropolitan areas across 31 states and giving an 8.49 percent average, is from 2022 and is not used here. The current guides do not disclose their sample.
  • Clever 2026 survey of real estate investors checked September 2026The survey sample is 21 investors, which is very small. Clever is also a referral service that competes with cash buyers for sellers. The full observed range runs 50 to 85 percent.

What changed in August 2024, and what did not

You sign before you tour, and the number has to be real

Under the National Association of Realtors settlement, an agent using a multiple listing service must obtain a written agreement with a buyer before touring a home, in person or on a live virtual tour. The agreement has to do four things: state and conspicuously disclose the compensation the agent will receive from any source; state that the agent may not receive more than that from any source; disclose in conspicuous language that broker commissions are not set by law and are fully negotiable; and include anything else the law requires.

The part people miss is that the compensation term must be objective. NAR's own wording is a dollar figure, a flat fee, a percentage or an hourly rate, and not open-ended. A buyer signing an agreement that says the agent will be paid whatever the seller offers is signing something the rule does not permit. An open house conversation does not require an agreement.

The fee moved off the MLS, not out of existence

Offers of buyer-broker compensation can no longer appear on an MLS. What survives is stated plainly by NAR: sellers can still offer compensation off an MLS, and can still offer buyer concessions on an MLS, for closing costs among other things. So the fee did not disappear; it moved from a field on a listing into a conversation someone has to start.

That change is not widely understood. In a July 2026 survey of 500 sellers, 35 percent still voluntarily offered to cover the buyer's agent fee, and 45 percent did not realize the requirement to offer it had been eliminated. Two years on, nearly half the market was operating on the old rules.

Two figures in the table measure different things

The table above carries a total commission figure and a separate buyer's-side figure, and they are not two views of one number. The total comes from an agent survey; the buyer's side comes from recorded transactions. They also point in slightly different directions. The survey frames rates as having come down from six percent. The transaction data shows the buyer's side essentially flat across the settlement, 2.43 percent before and 2.40 percent after.

Both are published here rather than reconciled, because reconciling them would mean inventing a figure neither source supports. What both agree on is that the price tier moves the rate: over a million dollars the buyer's side averaged 2.17 percent, under five hundred thousand it averaged 2.49.

On property management, the fee base is the clause that matters

A ten percent management fee can mean two quite different things. Charged on rent collected, the manager is paid when the tenant pays, and absorbs the cost of chasing a delinquency. Charged on rent due, the manager is paid on the lease amount whether the tenant paid or not. Most managers use rent collected, but the word is not always in the headline quote and it decides who carries the loss during a bad tenancy.

The second thing a percentage hides is the fee schedule around it. Tenant placement is commonly half to a full month's rent. Lease renewal, setup, inspections, eviction handling and a markup on every repair invoice all sit outside the monthly percentage. An owner comparing eight percent against ten percent without comparing those is comparing the smaller half of the cost.

A cash offer is a percentage of a number you have not seen

Investor offers are quoted as a share of after-repair value, and the repair estimate is then deducted from that share. So the headline percentage understates the discount, because it is a percentage of what the house will be worth after work you are not paying for and cannot verify. One investor described the arithmetic as about 70 percent of value, minus repairs, minus buying costs, minus holding costs, minus estimated utilities.

What you are buying with that discount is real: no commission, no repairs, no showings, and a close in one to three weeks. Whether it is worth it depends entirely on what the alternative would have netted, and that is a question worth asking an agent before signing with an investor rather than after.

How to choose

Read the compensation line in the buyer agreement before you sign it, and check it is a specific figure. That is what the rule requires and it is the only part of the document that binds you to a cost.

Ask a listing agent directly whether they will offer buyer-agent compensation, and treat it as a decision rather than a default. It is no longer on the MLS and it is no longer automatic, and nearly half of sellers do not know that.

Ask what the commission covers, item by item. Marketing, photography, staging and pre-listing repairs are sometimes inside the percentage and sometimes billed on top, and the difference is thousands of dollars.

On property management, ask whether the fee is on rent collected or rent due, then ask for the full fee schedule in writing. The percentage is the part you will compare and the schedule is the part you will pay.

Verify the license. Every state licenses brokers and agents, but licenses are generally not transferable between states, so an agent working across a state line needs a credential in both.

Questions to ask before you sign

  • What figure is written in the compensation line of this agreement, and is it a percentage, a flat fee or an hourly rate?
  • As a seller, will I offer buyer-agent compensation, and what happens to my listing if I do not?
  • What does the commission cover, and what will be invoiced on top of it?
  • Are there brokerage transaction or administrative fees beyond the commission?
  • On a rental, is the management fee charged on rent collected or on rent due?
  • What is the full fee schedule: placement, renewal, setup, inspections, maintenance markup, eviction?
  • On a cash offer, what after-repair value are you using, and what repair figure are you deducting?
  • What is your license number, and in which states do you hold one?

Common questions

What is a normal real estate commission now?

About 5.7 percent of the sale price in total across both sides, on Clever's February 2026 survey of 533 agents. Only 14 percent of surveyed sellers paid a full 6 percent, though 38 percent still believed 6 percent was standard.

Do I have to sign something before viewing a house?

Yes, if the agent uses a multiple listing service. Since 17 August 2024 a written buyer agreement is required before any tour, in person or live virtual. An open house conversation is not covered.

Can the agreement just say the seller pays?

No. NAR requires the compensation term to be objective, meaning a dollar figure, a flat fee, a percentage or an hourly rate, and not open-ended.

Does the seller still pay the buyer's agent?

Only if the seller agrees to. It can no longer be advertised on an MLS, though sellers can still offer it off-MLS and can offer buyer concessions on an MLS. In a July 2026 survey, 45 percent of sellers did not know the requirement had been eliminated.

What does a property manager charge?

Usually 8 to 12 percent of monthly rent for long-term residential, with placement, renewal, setup, inspection, maintenance markup and eviction fees charged separately. Ask whether the percentage is on rent collected or rent due.

How much will a cash buyer offer for my house?

Around 70 to 75 percent of after-repair value, with the repair estimate then deducted from that. The observed range runs 50 to 85 percent. Note that this figure comes from a survey of only 21 investors.

Are real estate agents licensed everywhere?

Yes. Every state licenses brokers and sales agents. Licenses are generally not transferable between states, though some states have reciprocity agreements.