Yes, real estate commissions are fully negotiable by law, as agents are independent contractors with flexibility in their fees. While traditional rates often hover around 5%–6% of the sale price, you can negotiate a lower rate, a flat fee, or ask for extra services to be included. Success depends on the agent, market conditions, and your negotiation strategy. 

Recent Industry Changes

Following a 2024 legal settlement, the way commissions are handled has shifted: 

  • Buyers: You are now required to sign a written agreement with your agent before touring homes. This agreement must clearly state the commission you have negotiated to pay them.
  • Sellers: You are no longer required to offer a set commission to the buyer’s agent in the Multiple Listing Service (MLS), though you can still choose to do so to attract more buyers. 

Key Tips for Negotiating Commission:

  • Interview Multiple Agents: Compare commission rates and services from three to five agents to find the best value.
  • Understand Market Conditions: In a seller’s market, agents may be more willing to accept a lower commission.
  • Ask for Specific Value: Rather than just asking for a lower price, ask what additional services (e.g., professional staging, virtual tours) they can provide for the standard rate.
  • Negotiate Before Signing: Discuss and set the commission rate before signing a listing or buyer’s agreement.
  • Consider Alternatives: If a full-service agent won’t budge, look into flat-fee or discount brokerages. 

Keep in mind that while saving money on commission is appealing, you should also consider the experience and marketing skills of the agent, as a higher commission might lead to a higher sale price for your home. 

Negotiation Trade-offs

While you can save thousands by negotiating, consider these risks:

  • Reduced Service: Agents charging less may offer fewer marketing tools, such as professional photography or staging.
  • Incentive Gap: If a seller offers a very low commission to buyer’s agents, some agents may be less motivated to show that property to their clients.
  • Negotiation Skill: Some experts argue that if an agent cannot even negotiate their own fee effectively, they may not be the best choice to negotiate your home’s sale price. 

Are you currently buying or selling a home?

Call the ROCK Team! 512.850.4510. ROCK Properties Realty is a full-service real estate brokerage firm based in Austin, Texas and headquartered in Round Rock, Texas. With 20 years of success helping buyers and sellers throughout Central Texas realize their real estate goals.