Real estate commissions are usually the most expensive part of selling your home. Real estate agents get paid for the services they provide through commissions on the sale of the home. The commission compensates them for all the work they put in — including listing it on a local multiple listing service (MLS), holding open houses, using their network to reach buyers and their agents, negotiating offers and repairs, and leading you through the final legal paperwork.
Agents don’t usually receive a set hourly or monthly pay — instead, they cash in when their client sells or buys a new home. The amount they make is usually calculated as a percentage of the final sales price, but some agents will charge a flat fee regardless of the home’s value or will offer a discounted commission. These commissions vary by state and by specific market and brokerage.
Usually, the seller pays the full commission for both their own listing agent and the buyer’s agent and it is split between the two. However, as with most closing costs, both who pays the commission and how much it is is completely negotiable.
New research by Clever found the average real estate commission rates in each state and explored which have the lowest and highest commission rates.The research found that the average commission rate across the U.S. is 5.45%, split between the buyer's and seller's agent.
Related: How Much Do Real Estate Agents Make? And Why?
Alabama
The average real estate commission rate for agents in Alabama is 5.65%, and the state ranks 37th (tied) for the lowest average realtor fees.
Alaska
The average real estate commission rate for agents in Alaska is 5.11%, and the state ranks 3rd (tied) for the lowest average realtor fees.
Arizona
The average real estate commission rate in Arizona is 5.40%, and the state ranks 23rd for the lowest average realtor fees.
Arkansas
The average real estate commission rate in Arkansas is 5.55%, and the state ranks 28th (tie) for the lowest average realtor fees.
California
The average real estate commission rate for agents in California is 5.02%, and the state ranks 2nd for the lowest average realtor fees.
Colorado
The average real estate commission rate in Colorado is 5.46%, and the state ranks 26th for the lowest average realtor fees.
Connecticut
The average real estate commission rate in Connecticut is 5.26%, and the state ranks 7th (tie) for the lowest average realtor fees.
Delaware
The average real estate commission rate in Delaware is 5.55%, and the state ranks 28th (tie) for the lowest average realtor fees.
District of Columbia
The average real estate commission rate in the District of Columbia is 4.90%, and ranks 1st as the lowest average realtor fees.
Florida
The average real estate commission rate for agents in Florida is 5.50%, and the state ranks 27th for the lowest average realtor fees.
Georgia
The average real estate commission rate for agents in Georgia is 5.75%, and the state ranks 45th for the lowest average realtor fees.
Hawaii
The average real estate commission rate for agents in Hawaii is 5.11%, and the state ranks 3rd (tie) for the lowest average realtor fees.
Idaho
The average real estate commission rate in Idaho is 5.36%, and the state ranks 18th (tie) for the lowest average realtor fees.
Illinois
The average real estate commission rate in Illinois is 5.35%, and the state ranks 17th for the lowest average realtor fees.
Indiana
The average real estate commission rate in Indiana is 5.74%, and the state ranks 44th for the lowest average realtor fees.
Iowa
The average real estate commission rate for agents in Iowa is 5.66%, and the state ranks 39th (tie) for the lowest average realtor fees.
Kansas
The average real estate commission rate in Kansas is 5.66%, and the state ranks 39th (tie) for the lowest average realtor fees.
Kentucky
The average real estate commission rate in Kentucky is 5.55%, and the state ranks 28th (tie) for the lowest average realtor fees.
Louisiana
The average real estate commission rate in Louisiana is 5.55%, and the state ranks 28th (tie) for the lowest average realtor fees.
Maine
The average real estate commission rate in Maine is 5.26%, and the state ranks 7th (tie) for the lowest average realtor fees.
Maryland
The average real estate commission rate in Maryland is 5.28%, and the state ranks 14th for the lowest average realtor fees.
Massachusetts
The average real estate commission rate in Massachusetts is 5.26%, and the state ranks 7th (tie) for the lowest average realtor fees.
Michigan
The average real estate commission rate in Michigan is 5.44%, and the state ranks 24th for the lowest average realtor fees.
Minnesota
The average real estate commission rate in Minnesota is 5.77%, and the state ranks 46th for the lowest average realtor fees.
Mississippi
The average real estate commission rate in Mississippi is 5.55%, and the state ranks 28th (tie) for the lowest average realtor fees.
Missouri
The average real estate commission rate for agents in Missouri is 6.07%, and the state has the highest average realtor fees in the country.
Montana
The average real estate commission rate in Montana is 5.36%, and the state ranks 18th (tie) for the lowest average realtor fees.
Nebraska
The average real estate commission rate in Nebraska is 5.66%, and the state ranks 39th (tie) for the lowest average realtor fees.
Nevada
The average real estate commission rate in Nevada is 5.36%, and the state ranks 18th (tie) for the lowest average realtor fees.
New Hampshire
The average real estate commission rate in New Hampshire is 5.26%, and the state ranks 7th (tie) for the lowest average realtor fees.
New Jersey
The average real estate commission rate in New Jersey is 5.17%, and the state ranks 6th for the lowest average realtor fees.
New Mexico
The average real estate commission rate in New Mexico is 5.59%, and the state ranks 35th (tie) for the lowest average realtor fees.
New York
The average real estate commission rate in New York is 5.29%, and the state ranks 15th for the lowest average realtor fees.
North Carolina
The average real estate commission rate for agents in North Carolina is 5.78%, and the state ranks 47th for the lowest average realtor fees.
North Dakota
The average real estate commission rate in North Dakota is 5.66%, and the state ranks 39th (tie) for the lowest average realtor fees.
Ohio
The average real estate commission rate in Ohio is 5.82%, and the state ranks 50th for the lowest average realtor fees.
Oklahoma
The average real estate commission rate in Oklahoma is 5.59%, and the state ranks 35th (tie) for the lowest average realtor fees.
Oregon
The average real estate commission rate for agents in Oregon is 5.15%, and the state ranks 5th for the lowest average realtor fees.
Pennsylvania
The average real estate commission rate in Pennsylvania is 5.26%, and the state ranks 7th (tie) for the lowest average realtor fees.
Rhode Island
The average real estate commission rate in Rhode Island is 5.26%, and the state ranks 7th (tie) for the lowest average realtor fees.
South Carolina
The average real estate commission rate in South Carolina is 5.79%, and the state ranks 48th for the lowest average realtor fees.
South Dakota
The average real estate commission rate in South Dakota is 5.66%, and the state ranks 39th (tie) for the lowest average realtor fees.
Tennessee
The average real estate commission rate in Tennessee is 5.57%, and the state ranks 34th for the lowest average realtor fees.
Texas
The average real estate commission rate in Texas is 5.65%, and the state ranks 37th (tie) for the lowest average realtor fees.
Utah
The average real estate commission rate in Utah is 5.36%, and the state ranks 18th (tie) for the lowest average realtor fees.
Vermont
The average real estate commission rate in Vermont is 5.26%, and the state ranks 7th (tie) for the lowest average realtor fees.
Virginia
The average real estate commission rate for agents in Virginia is 5.30%, and the state ranks 16th for the lowest average realtor fees.
Washington
The average real estate commission rate in Washington is 5.45%, and the state ranks 25th for the lowest average realtor fees.
West Virginia
The average real estate commission rate in West Virginia is 5.55%, and the state ranks 28th for the lowest average realtor fees.
Wisconsin
The average real estate commission rate for agents in Wisconsin is 5.81%, and the state ranks 49th for the lowest average realtor fees.
Wyoming
The average real estate commission rate in Wyoming is 5.36%, and the state ranks 18th (tie) for the lowest average realtor fees.
Bottom Line: All commissions are not created equal
Although we’ve listed the average real estate commissions in each state, they can vary by market and even by agent. If you have solid arguments for negotiating a lower commission, you certainly can. Agents are used to this, and it could save you thousands!