According to a report from Clever Real Estate, the average total commission for U.S. real estate agents is now 5.44%, a rise from 5.32% over the past year, despite the recent broker commission reforms from the National Association of REALTORS®.
The uptick follows changes stemming from the March 2024 Burnett v. NAR settlement. In that landmark agreement, NAR agreed to put in place a new MLS rule prohibiting offers of broker compensation on the MLS and pay $418 million in damages over four years.
“The two biggest factors [that contributed to the increase in average commission rates] are the continued coolness in the residential housing market, combined with agents coming to terms with and developing strategies in response to the NAR lawsuit,” said Trent Seigfried, data analyst at Clever Real Estate.
Commission for buyer’s and seller’s agents
By mid-2024, sellers were no longer obligated to offer compensation to buyer’s agents —and even if they did, the information no longer appeared on the MLS.
Clever Real Estate reports that sellers are paying “slightly less” in real estate commissions compared to five years ago, suggesting the NAR lawsuit had a “modest but noticeable effect” on buyer’s agents’ fees.
Seller’s agents earn between 1.00% and 4.50% of the sale price, averaging 2.77%, which on a $367,711 home equates to $3,677 to $16,547.
In comparison, buyer’s agents typically collect between 1.00% and 4.00%, averaging 2.67%. On a $367,711 home sale, that equates to roughly $3,677 to $14,708 in commission. Buyer’s agent’ commissions reportedly dropped from 2.70% in 2021 to 2.30% in 2024.
“Many agents are observing that buyers are more interested in negotiating than before, but agents have responded by having a firm “floor” in how much they’ll negotiate,” Seigfried said. “While customers may be more interested in negotiating than before, agents are more prepared for it than before.”
Commission landscape across the United States
Commissions hit a five-year low of 5.32% in 2024, but as markets adjusted, they have climbed back toward the 2023 average of 5.49%.
Rates vary widely depending on location, with home values influencing those differences. Current statewide averages range from 4.92% to 6.03%. It comes as no surprise that in states with high-value properties, the rates are lower, while in states with low-value properties, the rates are higher.
With a rate of 5.18%, Illinois ranks third-lowest in total commission — well under the national average of 5.44%.
As the second-most expensive region nationally, the Midwest has an average rate of 5.43%. States like North Dakota and Wisconsin offer some of the lowest rates, while Ohio and Michigan tend to have higher rates, according to the report.
Overall, from 2024 to 2025:
- 39 states experienced commission increases
- 10 states saw commission decreases
- New York remained flat
For a home priced at the national median of $367,700, the total Realtor commission amounts to approximately $20,003, based on the current average commission rate of 5.44%.
“Commission rates have slightly increased over the past six months, compared to a drop in rates late last year after the NAR lawsuit,” Seigfried said. “We anticipate a period of stabilization, particularly if the residential housing market remains cool. In other words, we don’t expect any radical shifts in commission rates in the coming year.”