how-to
Negotiating Real Estate Agent Commissions: 2026 Guide
Table of Contents
- Why Negotiating Real Estate Agent Commissions Is Normal in 2026
- Real Estate Agent Commission Rates: What Sellers and Buyers Actually Pay
- How to Compare Real Estate Agent Fees Before You Sign
- What Belongs in a Real Estate Agent Commission Agreement
- A Real Estate Commission Negotiation Script You Can Use Word for Word
- Common Mistakes When Negotiating Agent Commissions
- Conclusion: Getting the Right Agent at the Right Rate
- Frequently Asked Questions
Last Updated: October 8, 2026
Why Negotiating Real Estate Agent Commissions Is Normal in 2026
Negotiating real estate agent commissions is now a standard part of selling or buying a home, not a taboo subject. This guide from Bernie Krause walks you through how to do it well, without damaging the relationship with your agent.
Here is the biggest change: commission rates are no longer set by any rule or tradition. They are negotiable, and everyone involved knows it. The Consumer Financial Protection Bureau's home buying resources encourage buyers and sellers to ask questions about fees before signing anything.
That shift matters because commissions are usually the single largest transaction cost in a home sale. On a typical East Valley sale, they can run into tens of thousands of dollars. So the question is not whether you can negotiate. It is how to negotiate without losing the agent you actually want.
Below, we break down what you pay, how to compare fees, what belongs in your agreement, and a word-for-word script you can use.
Real Estate Agent Commission Rates: What Sellers and Buyers Actually Pay
Real estate agent commission rates are not fixed. A commission is simply a percentage of the sale price paid to the agents involved, and that percentage is a matter of negotiation.
Traditionally, the seller paid one total commission, which was split between the listing agent and the buyer's agent. That structure has changed. The 2024 NAR settlement reshaped how buyer-agent pay works, so sellers and buyers now handle it differently.
How the 2024 NAR Settlement Changed Buyer-Agent Compensation
The 2024 NAR settlement ended the long-standing practice of offers of compensation being advertised through the multiple listing service. In simple terms: sellers are no longer expected to automatically cover the buyer's agent's fee.
Buyers now typically negotiate their own agent's compensation directly. That means two separate negotiations may happen in one deal: the seller's listing fee and the buyer's agent fee.
The National Association of Realtors settlement FAQ explains the practice changes in detail. The short version for you: ask who pays whom, and get it in writing.
How to Compare Real Estate Agent Fees Before You Sign
Comparing real estate agent fees means looking beyond the percentage. The cheapest rate is not always the best deal, and the highest rate is not always the best service.
Here is what to weigh side by side:
| What to Compare | Why It Matters | What to Ask |
|---|---|---|
| Commission rate | Direct cost to you | Is it a flat fee or a percentage? |
| Services included | Some agents charge less but do less | What is covered in the fee? |
| Marketing plan | Drives your sale price | How will you market my home? |
| Local track record | Market knowledge affects results | How many homes here have you sold? |
| Communication style | Affects your stress level | How often will you update me? |
A lower rate on paper can cost you more if the home sits on the market. A higher rate can pay for itself with a stronger sale price. Compare the whole picture, not just the number.
The right rate depends on your home and your timeline.
What Belongs in a Real Estate Agent Commission Agreement
A real estate agent commission agreement is the written contract that states exactly what you pay, when you pay it, and what the agent does in return. Never rely on a verbal promise.
Make sure your agreement spells out:
- The exact commission rate or flat fee
- Who pays the buyer's agent, and how much
- How long the listing agreement runs
- What happens if you find a buyer yourself
- What marketing and services are included
- Any cancellation or early-termination terms
Read every line before you sign. If something is unclear, ask. A good agent will welcome the questions.
A Real Estate Commission Negotiation Script You Can Use Word for Word
A real estate commission negotiation script gives you the exact words to start the conversation calmly and clearly. Use it as a starting point and adjust it to your own voice.
Here is a simple script you can adapt:
"I'm serious about working with you, and I want to make sure the numbers work for both of us. Can we talk through the commission rate and what it covers? I'd like to understand the full picture before I commit."
Then follow with:
"I've seen a range of rates in this market. What flexibility do you have on the percentage, and what would that change about the services?"
If the agent holds firm, try:
"I understand. If the rate is fixed, can we adjust the term length or the marketing package instead?"
Phrases That Work and Phrases That Backfire
Some approaches open the door. Others slam it shut.
Phrases that work:
- "I want to make this work for both of us."
- "Help me understand what the fee covers."
- "What flexibility do you have?"
Phrases that backfire:
- "Another agent will do it for less." This invites a race to the bottom.
- "I'm not paying that." This sounds like an ultimatum, not a negotiation.
- "Everyone else negotiates." This puts the agent on the defensive.
The Federal Trade Commission's guidance on real estate notes that consumers should shop around and compare services. Do that homework first, then negotiate from knowledge, not pressure.
Common Mistakes When Negotiating Agent Commissions
The biggest mistakes in commission talks come from focusing only on the rate and ignoring everything else.
Watch out for these:
- Chasing the lowest rate. You may get an agent who does the bare minimum.
- Negotiating before you know the market. Compare real fees first.
- Skipping the written agreement. Verbal deals fall apart.
- Forgetting the buyer's side. Confirm who pays the buyer's agent.
- Burning the relationship. A good agent is worth more than a small discount.
A common mistake is treating the negotiation as a fight. It is not. The best outcomes come from a calm, informed conversation where both sides understand the numbers.
Conclusion: Getting the Right Agent at the Right Rate
The real challenge is not winning a discount. It is finding an agent who knows your market, markets your home well, and charges a rate you both agree on.
That is where Bernie Krause comes in. Bernie Krause knows the East Valley landscape and is committed to helping clients navigate the housing market. Whether you're searching for your dream home or looking to sell your current property, Bernie provides expert guidance and support throughout the entire process. With a focus on the East Valley real estate landscape, Bernie Krause is your trusted partner for all your home buying and selling needs.
Get started with Bernie Krause and find the right agent at the right rate.
Frequently Asked Questions
Can you negotiate a real estate agent's commission?
Yes. Commissions have always been negotiable, and the 2024 National Association of Realtors settlement made that clearer by requiring written buyer-agent agreements that spell out compensation. Sellers can ask for a lower listing-side percentage, and buyers can negotiate what their agent is paid. Agents are not obligated to accept your number, but they are obligated to discuss it. Ask early, before you sign anything, and get the agreed rate in writing.
What should I say when asking a real estate agent to lower their commission?
Keep it direct and specific. Try: 'I'm interviewing a few agents, and your marketing plan is strong. To make this work, I need the listing side at [X] percent. Is that something you can do?' Avoid ultimatums you won't follow through on. If the agent says no, ask what services could be trimmed to lower the rate, or whether a flat fee applies for a limited-service listing. Get any agreed change written into the listing agreement before signing.
Can a real estate agent refuse to negotiate their commission?
Yes. An agent can hold firm on their rate, and you are free to walk away and interview someone else. What an agent cannot do is collude with other agents to fix commission rates, which is illegal under antitrust law. If every agent you talk to quotes the exact same number with no flexibility, that is a red flag worth reporting to your state real estate commission or the Consumer Financial Protection Bureau.
When should you discuss an agent's commission?
Bring it up during the initial interview, before you sign a listing agreement or buyer representation agreement. That is when you have the most leverage because the agent has not invested time or money yet. For sellers, ask before professional photos, staging, or MLS listing. For buyers, ask before the first showing. Waiting until after the agent has done weeks of work makes negotiation awkward and less likely to succeed.
