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Guide: costs
Three lines decide most of it: what you agree to pay the agents, which is negotiable and written into your listing agreement; your state's transfer tax; and any concessions you offer the buyer. Each one below comes from its source, with a $400,000 example.
NAR consumer guides and state revenue agencies, read Oct 8, 2026.
Since August 17, 2024 two things are different for sellers. Offers to pay the buyer's agent are 'no longer allowed on Multiple Listing Service (MLS) platforms', though sellers 'can still offer compensation off an MLS'; and buyers sign written agreements with their own agents1. What did not change is the basic rule: 'Agent compensation for home buyers and sellers continues to be fully negotiable'1.
Your listing agreement is where the number lives. NAR describes it as the contract that sets 'what they will be paid for those services', and lists four kinds: exclusive agency, exclusive right-to-sell, limited-service and non-exclusive2. Paying the buyer's agent is a separate decision: NAR says your agent 'can only offer compensation or make a payment to a buyer's agent if they have your written approval and signoff on the amount', and that such offers are not mandatory23.
NAR does not publish a typical rate. The figures you will see come from companies that sell a cheaper option, so read them as their framing: Redfin says that 'At a traditional brokerage, the total commission is typically 5%-6%' with each agent getting 2.5%-3%, and charges a 2% listing fee itself; Clever says its partner agents charge 1.5% ($3,000 minimum); Opendoor's cost article lists 2.5% to 3% for the listing side and 0% to 3% for the buyer side15161718. NAR's 2025 Profile found that 91% of sellers used an agent5.
Our arithmetic. Pick the rates you negotiate; the listing side and any buyer-agent offer add together.
| Rate per side | On $400,000 | Who quotes this rate |
|---|---|---|
| 1.5%17 | $6,000 | Clever partner agents, listing side ($3,000 minimum) |
| 2%16 | $8,000 | Redfin listing fee in the markets it lists |
| 2.5%15 | $10,000 | Low end of the per-agent range Redfin calls typical |
| 3%15 | $12,000 | High end of the per-agent range Redfin calls typical |
| Source | Our arithmeticRead Oct 8, 2026 | Company fee pagesRead Oct 8, 2026 |
Redfin's fee drops to 1% if you also buy with Redfin within 365 days and rises by 1% if the buyer has no agent; minimums run from $2,000 to $8,500 by market. Every rate is negotiable.
The rate as the state agency or statute states it, read Oct 8, 2026, and the tax on a $400,000 sale (our arithmetic). Local add-ons are noted where the agency names them.
| State | Rate | On $400,000 | Liable party, per the source |
|---|---|---|---|
| Florida (not Miami-Dade)6 | 70 cents per $100 | $2,800 | All parties liable, whoever agrees to pay |
| California7 | County 55 cents per $500; a city may add half | $440; $660 with a city tax | Not stated by the source |
| New York State9 | $2 per $500; 1% mansion tax at $1M and up | $1,600 | Seller pays the base tax; buyer the mansion tax |
| Pennsylvania10 | 1% state, often plus a local tax | $4,000 state | Grantor and grantee jointly liable |
| Washington11 | 1.10% up to $525,000, graduated to 3%; plus local | $4,400 state | Usually the seller |
| Illinois, Chicago13 | County 25 cents per $500; Chicago $5.25 per $500 | $200 county; $4,200 Chicago | Chicago: buyer $3.75, seller $1.50 per $500 |
| Source | State agencies and statutesRead Oct 8, 2026 | Our arithmeticRead Oct 8, 2026 | State agenciesRead Oct 8, 2026 |
A dash means the source does not say. Not verified today and left out: the Illinois state rate (35 ILCS 200/31-10, whose host did not answer) and Texas (statutes host unreachable). Miami-Dade: 60 cents per $100 plus a 45 cent surtax that does not apply to a single-family home. Washington's thresholds change on January 1, 2027.
A concession is 'when a seller pays for certain costs associated with purchasing a home for the buyer'. NAR's examples: 'a title search, loan origination, inspection, homeowners' associations, real estate taxes, or home repairs and updates', and fees for professionals such as agents and appraisers4.
The limit 'depends on the terms set by the buyer's lender and state law', but 'any payment you offer toward the buyer's broker's fee is excluded from limits set by the buyer's lender and must be made off-MLS'. A concession advertised on the MLS 'must be written as the total sum of all concessions offered and can't be conditioned on the use of, or payment to, a buyer's agent'4.
Opendoor's cost article puts seller-side closing costs at 1% to 3% of the price, pre-listing prep at 0.5% to 2% and concessions at 0% to 3%18. Those are one company's estimates, not a survey; your title or escrow company and your agent can give real figures for your county.
One example with rates you choose, to show how the lines add up. Our arithmetic; your contract, county and lender decide the real figures.
| Line | Rate used | Cost |
|---|---|---|
| Listing agent2 | 2.5% (negotiable) | $10,000 |
| Buyer's agent, if you offer it3 | 2.5% (optional, off-MLS) | $10,000 |
| Documentary stamp tax on the deed6 | 70 cents per $100 | $2,800 |
| Closing-cost credit to the buyer4 | 1% (your choice) | $4,000 |
| Total of these lines | 6.7% of the price | $26,800 |
Florida makes all parties liable for the stamp tax; your contract sets which side pays it. Title, escrow, recording fees and your mortgage payoff are not in this table.
The IRS lets you 'exclude up to $250,000 of that gain from your income, or up to $500,000 of that gain if you file a joint return with your spouse', if you owned and used the home as your main home for at least 24 months of the 5 years before the sale14. You are generally not eligible if you used the exclusion on another home in the two years before the sale, and if you receive Form 1099-S you must report the sale even when the gain is excludable14.
NAR's 2025 Profile puts the median time sellers lived in a home before selling at 11 years, so at least half of sellers have owned their home far longer than the two years the ownership test asks for; the use test still has to be met5. IRS Publication 523 has the worksheets.
Step 1
Ask each for its rate and services in writing. NAR's point stands: the pay is negotiable.
Step 2
Offer it or not, in writing, off the MLS. It is your call, per NAR.
Step 3
From your state's revenue agency, plus any county or city tax.
Step 4
Within the buyer's lender limits; advertise it as one total if on the MLS.
Step 5
The 2-of-5-year test and IRS Publication 523.
Good for a second agent-matching service to compare
Good for a shortlist of local listing agents to interview
Also on HomeLight's site
No law or NAR rule sets one, and NAR says agent pay is fully negotiable. Redfin calls 5% to 6% total typical at a traditional brokerage; Clever's partners charge 1.5% for the listing side and Redfin 2%. Each sells a cheaper option, so treat their figures as framing.
No. NAR says offers of compensation are not mandatory; if you make one, your agent needs your written approval of the amount, and it cannot go on the MLS.
It depends on the state: New York puts the base tax on the seller, Washington says the seller usually pays, Pennsylvania and Florida make the parties jointly liable, and Chicago splits its tax $3.75 buyer and $1.50 seller per $500.
Often none on the first $250,000 of gain ($500,000 on a joint return) if the home was your main home for 2 of the last 5 years, per IRS Topic 701.
Yes, by the buyer's lender and state law. Payments toward the buyer's broker's fee are outside those lender limits but must be made off the MLS, per NAR.
Your mortgage payoff, title and escrow fees, recording fees and any repairs you agree to. Opendoor estimates seller-side closing costs at 1% to 3%; ask your title company for your county's figures.
Programs, fees and terms belong to each company and can change. The company's own page is the final word on price, eligibility and terms.
SellSmart Match is not a real estate brokerage, agent, lender or law firm. Nothing here is legal, tax or financial advice, and we do not pass your details to anyone.