How commission works | Commission calculator | Best ways to save | Methodology
📊 The data:
We surveyed local agents and found that the average real estate commission in Los Angeles is 5.50%, which is higher than the national average of 5.37%.
The average total real estate agent commission rate in Los Angeles is 5.50% of the final sale price. Based on the latest median home sale price in Los Angeles ($899,401), that translates to a total cost of roughly $49,467.
Home sellers typically cover the total commission fee from their sale proceeds, which is split between the listing and buyer’s agents who handle the sale. In Los Angeles, the average listing agent fee is 3.00%, while the average buyer’s agent fee is 2.50%.
Real estate agent commissions make up a significant portion of the closing costs for Los Angeles home sellers. But you don't have to pay the full 5.50% to a traditional agent. If you're selling a home in Los Angeles, you can use a discount broker to save on realtor fees. In fact, depending on your situation and the agents you work with, you could save 36% on realtor fees, or about $17,988 on average.
⚡ Find top agents and save: Answer these five simple questions to get matched with the best local agents offering reduced commission rates. Compare agents from top brokerages like Keller Williams and RE/MAX, and get a discounted rate through Clever’s partner network.
How real estate commission works in Los Angeles
| Average listing commission | 3.00% |
| Average buyer's agent commission | 2.50% |
| Total average commission | 5.50% |
There are usually two real estate agents involved in the real estate transactions of a home sale:
- The seller's agent (also called the listing agent), who represents the home seller
- The buyer's agent, who represents the person buying the home
Based on our research, the average real estate commission paid in Los Angeles for listing agents is 3.00% of the final home price and 2.50% for buyer's agents, for a total of 5.50%.
» LEARN: How do real estate broker commissions work?
Real estate commission calculator for Los Angeles
Use this commission calculator to estimate how much you'll pay in realtor fees when you sell your home in Los Angeles. Enter an estimate of your home's sale price, and see how much you'll pay at different commission rates.
Who pays realtor fees in Los Angeles?
When selling a home in Los Angeles, the sales commissions for both the listing agent and buyer's agent are taken out of the final sale price. As the seller, you do not have to pay these fees upfront.
The listing agent earns their commission by providing services such as market analysis and handling the closing process. The buyer's agent makes their commission by bringing a qualified buyer who meets the purchase terms and completes the transaction.
As the seller, you do not pay these commissions out of pocket. The agents' fees are deducted from the sale proceeds once the sale closes.
If you want to reduce your real estate fees, Clever can connect you with a top local listing agent charging just 1.5% commission. This will allow you to keep more of the sale proceeds for yourself.
» SAVE: Sell with Clever for 1.5% listing fees and save thousands in commission!
Why do sellers pay the buyer's real estate agent commission?
Offering to cover the buyer's agent commission can make your listing more appealing to potential buyers.
Paying this fee makes your home more attractive to buyers since they won't have to pay their agent's commission upfront on top of the down payment and closing costs — expenses many buyers struggle to take on.
When you make a competitive offer on the buyer's agent commission, real estate agents become more motivated to showcase your property to their clients. This can increase your chances of garnering multiple offers. Experts recommend advertising a buyer's agent commission within 0.5% of the local norm, which is 2.50% in Los Angeles.
Will the NAR lawsuit change how real estate commission works?
A November 2023 lawsuit found the National Association of Realtors (NAR), Homeservices of America, and Keller Williams Realty guilty of misleading sellers into paying high realtor fees.
The judge agreed with the plaintiffs that sellers should not be on the hook for the buyer's agent commission. It's too early to tell if this decision will change how buyer's agents are paid. We're monitoring the appeal in this case as well as other lawsuits and will keep you updated.
» READ MORE:
How to save on realtor fees in Los Angeles
Commission rates are not set in stone. In fact, we found that while 3.00% is the average in Los Angeles, rates typically fall between 5.50% and 5.50%. You can save money by negotiating a lower rate with your listing agent or by working with a discount real estate brokerage.
| Listing commission range | 0.95%– 4.05% |
| Buyer's agent commission | 2.50%– 2.50% |
| Total commission range | 5.50%– 5.50% |
Can I negotiate realtor commission in Los Angeles?
Real estate commission is always negotiable. In California, the 58 agents we surveyed said these were their most common reasons for agreeing to lower their commission.
| Would you lower your commission for…? | Agents who answered yes |
|---|---|
| Homeowners who are repeat clients | 66% |
| Homeowners who also plan to buy with you | 66% |
| Homeowners with more than one property to sell | 64% |
| Seller’s situation (e.g. divorce or death in the family) | 50% |
| Higher property values | 43% |
| High competition for clients | 41% |
| Homes expected to sell quickly | 36% |
| High buyer demand in the area | 29% |
| Periods of low housing inventory | 22% |
| Houses in excellent condition | 19% |
| Highly experienced home sellers | 15% |
Negotiating realtor fees in Los Angeles depends on two main factors: your situation and the housing market.
| Factor | You may have an easier time negotiating low rates if... |
|---|---|
| Your situation |
|
| The Los Angeles housing market |
|
While your personal circumstances differ, the real estate market conditions in Los Angeles impact all sellers in the area.
In a seller's market, where sellers have more leverage, listing agents typically have an easier time and may be more willing to reduce their commissions. The opposite is often true in a buyer's market.
Not comfortable negotiating with a realtor? Avoid the awkward conversation and let Clever pre-negotiate a lower rate with a top agent for you.
To evaluate your local real estate market, look at these three factors:
- Inventory Months
- Sales Price to List Price Ratio
- Home Value Trends
If signs indicate Los Angeles is firmly a seller’s market, you may be in a good position to negotiate a lower commission. However, if conditions favor buyers, it may be harder to get an agent to accept a cheaper rate.
The current state of the Los Angeles real estate market
| Factor | Trends | Indication |
|---|---|---|
| Months of inventory | There's 1.5 months of housing inventory on the market | Seller's market |
| Sale-to-list ratio | Homes are selling for 89.16% of their listing price | Buyer's market |
| Home values | Home values have risen 33.56% year over year | Seller's market |
Low commission real estate companies in Los Angeles
Negotiating a lower rate with a professional negotiator can be hard! In many cases, home sellers can save just as much (or more!) by selling with a low commission real estate company.
Discount real estate brokers typically offer full-service support for a reduced commission percentage or flat rate. How they create those discounts will depend on the company's model, with some creating more risks and trade-offs than others.
Listing Fee
Customer Rating
Availability
Overview
Pricing
Reviews
Contact
Overview: For homeowners in Los Angeles, CA, with an eye on saving on commission while retaining top-notch real estate services, Clever is a great choice.
✅ Benefits and features: Enjoy a notable reduction in realtor fees — as much as 50% less than what traditional non-discount real estate agents charge. Additionally, leverage the highly-acclaimed, obligation-free realtor matching service that Clever provides at no cost.
🏠 How it works: Clever pairs you with elite local real estate agents from well-established brokerages, including RE/MAX and Compass. You can sift through your options to secure an agent that aligns with your expectations, all the while guaranteed a special listing fee of just 1.5% — on par with Redfin's rate, no matter the agent you end up with.
Pros
- Experience the full services of a conventional agent from a reputable brokerage, bypassing the limitations of a discount agent.
- Benefit from a significant price reduction, with agents cutting their standard rates by up to half when associated through Clever.
- Access an extensive selection of premier agents in the Los Angeles region, unmatched in variety.
Cons
- No guarantee you’ll be able to work with a specific agent or brokerage you have in mind
- Add-ons like professional staging, drone photos, and 3D tours may cost extra (agents will break down what’s included during their listing presentation)
Fee structure
- 1.5% listing commission ($3,000 min.) paid at closing
- 2–3% buyer’s agent commission paid at closing
| Weighted avg. | 5.0 | 2,627 |
| Trustpilot | 5.0 | 2,402 |
| 4.8 | 225 |
Website: semya-moya.ru
Phone: 1-833-225-3837
Hours: 8 a.m.–8 p.m. EST, 7 days a week
Address: 6358 Delmar Blvd, Suite 300, Saint Louis, MO 63130
Listing Fee
Customer Rating
Availability
Overview
Pricing
Reviews
Contact
Overview: For those selling property in Los Angeles, Redfin presents a fairly attractive option, balancing savings with service in the discount brokerage space.
✅ Benefits and features: Redfin carves out potential savings with their 1.5% listing fees, which already undercut the typical industry standard. A notable perk is the additional savings of 0.5% on listing fees if you buy and sell within a year using their services. The company's established presence translates into a wider network of discount realtors available to sellers than many smaller local firms can provide.
🚩 Potential red flags: Redfin's modern, tech-forward model, which involves a mix of remote service and a team approach, might not align with those preferring a more traditional, one-on-one realtor relationship. Redfin also has a minimum $8,000 fee in Los Angeles. So if your home is below $530,000, you’ll pay slightly more than the advertised 1.5% rate.
Pros
- Solid listing fee savings
- Established brand and decent agent selection
- Tech-forward approach may appeal to some sellers
Cons
- Higher minimum fee vs. other Los Angeles options
- High-volume, team-centric approach may not be for everyone
- Less agent selection than Clever
Fee structure
- 1.5% listing fee ($8,000 min. in Los Angeles) at closing
- 2–3% buyer’s agent commission at closing
- 0.5% listing fee refund if you also buy with Redfin within 12 months
*Not enough available data at this time
Website: redfin.com
Phone: 1-844-759-7732
Hours: 8 a.m.–5 p.m. CT, 7 days a week
Address: 2710 Media Center Dr, #210, Los Angeles, CA 90065
Areas served: Greater Los Angeles area
Listing Fee
Customer Rating
Availability
Overview
Pricing
Reviews
Contact
Overview: Trelora Realty stands out as a comprehensive discount realty service offering potential cost reductions on traditional commission rates. Their innovative collaborative team approach is designed to augment the home buying and selling experience.
✅ Benefits and features: Trelora's competitive edge lies in their substantially lower commission fees that have garnered favorable reviews from cost-conscious clients. They employ a collaborative strategy, assigning a team of seasoned real estate experts to each client, potentially enhancing the diversity of skills and quality of service available.
🚩 Potential red flags: Trelora opts for a collective team rather than a dedicated single agent to guide clients through the buying or selling process. This team-based method might lead to complications or a diluted sense of individual care if communication isn't handled effectively.
Pros
- Significant savings due to low 1% commission rate
- Positive customer reviews
- Some sellers may enjoy working with a team vs. a single agent
Cons
- Potential lack of personal service due to team-based approach
Fee structure
- 1% listing fee at closing
- 2–3% buyer's agent commission at closing
Website: trelora.com
Phone: 866-471-3440
Address: 2110 K St, Sacramento, CA 95816
Areas served: Arizona, California, Colorado, Georgia, Illinois, North Carolina, South Carolina, and Washington
» LEARN: How do discount real estate brokers offer lower fees?
Next steps
Thinking of selling your home but don't know where to start? Here are some next steps.
Start interviewing local agents
Set up some listing appointments, where an agent visits your home to discuss its estimated value, lay out their marketing strategy, and provide a quote for their fee.
Here's why it's smart to sit down with a few agents before signing with one:
It's completely free to meet with agents: There's no obligation or risk on your end. Just keep in mind that the agent is meeting with you to win your business, and will try to sell you on their service.
You can compare pricing and features: Shopping around helps you find the best fit for your specific needs – in terms of fees, experience, and services provided.
Learn more about your market from an expert: Realtors can provide local data, like how much nearby homes are selling for, how fast they sell, and other current market trends.
Learn about the home sales process: An agent can walk you through the sales process from start to finish, and provide tailored advice for marketing your property to home buyers.
To get started, check out our guide on the best ways to find real estate agents — or you can sign up for Clever’s free agent matching service below to connect with top realtors in your area right now (and save on commission).
Clever has pre-negotiated low commission rates of only 1.5%, with Los Angeles's top agents. Contact Clever today to find out how much you can save on commission!
Clever can connect you with top local agents sell your house for a pre-negotiated low rate: just a 1.5% listing fee when your home sells (half the typical rate!).
You can interview your Clever agent matches, get free pricing estimates, and compare marketing plans — all with no strings attached.
Ready to learn more? Click below to take our simple quiz and see your agent matches!
Methodology
We gathered our commission rate data from a survey of 623 of our partner agents. The survey asked about standard local rates for both listing and buying agents. We also asked agents about when and why they're willing to negotiate real estate commissions.
Additionally, we utilized the following data from Zillow and Realtor.com:
- Home values, list prices, and sale prices: Based on Zillow data as of August 2023
- Sale prices and sale-to-list ratios: Based on Redfin data as of February 2023 (unless specified otherwise)
- Months of inventory: Based on Realtor.com data as of February 2023
