Question 1

What is the average real estate commission rate?

Accepted Answer

The US average is about 5–6% of the sale price, traditionally split 50/50 between the seller's listing agent and the buyer's agent. After the 2024 NAR settlement, sellers can now negotiate and offer any amount (or none) to the buyer agent.

Question 2

Who pays the real estate commission?

Accepted Answer

In most US transactions the seller pays both the listing agent and the buyer agent commission out of the sale proceeds at closing. Starting August 2024, the buyer's agent commission must be negotiated in writing up front, but the seller still often pays.

Question 3

Are real estate commissions negotiable?

Accepted Answer

Yes — commissions were always negotiable, and since the 2024 NAR settlement they are no longer advertised in MLS listings. Sellers can negotiate a lower rate, a flat fee, or pay the buyer's agent directly.

Question 4

Does this calculator include transfer tax?

Accepted Answer

Yes. Pick your US state from the dropdown and we apply its average transfer tax rate. Some counties and cities add extra taxes, so always confirm with your title company for an exact closing statement.