Real estate commission rates are not set by law, so the number on your listing agreement is whatever you and your broker agree to. Nationally, total commissions land near 5.5% of the sale price, and California follows a similar range. Under our Demand Blueprint listing the rate is 2.5%, and our flat-fee options start at $9,500. On a Chino Hills home, the gap between a standard listing and a structured one can run into five figures.

This guide covers the rates, who pays after the 2024 rule changes, what else comes out of your proceeds, and how to negotiate. It also shows a net sheet with real arithmetic.

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TL;DR

  • Commission is negotiable. California requires a written notice in every covered listing agreement saying rates are not fixed by law.
  • Recent surveys put the national average total near 5.4% to 5.6%, roughly $22,000 on a median-priced home.
  • Since August 2024, listings can’t advertise buyer-agent pay on the MLS. The listing agreement and the buyer’s written agreement now spell out who pays whom.
  • Commission is only one line on your net sheet. Title, escrow, transfer tax and prorations come out too.
  • Our published options: Demand Blueprint at 2.5%, or flat fees of $9,500, $12,500 and $15,800.

Table of Contents

What real estate commission rates look like today

The American Bar Association says real estate firms typically charge 5% to 7% of the sale price and that the agreement is negotiable. Survey data runs tighter. Redfin figures put the 2025 average total commission at 5.44%, with the seller’s agent near 2.77% and the buyer’s agent near 2.67%. A September Clever Real Estate survey of 828 agents found 5.57% overall, about 2.82% for listing agents and 2.75% for buyer’s agents. That works out to roughly $22,000 on a home near the median price.

Comparison of reported real estate commission rates

The old model had the seller paying both sides, each up to about 3%. The Federal Reserve notes that the National Association of Realtors settlement potentially upends that arrangement. Even so, buyer’s agent commissions did not collapse. One analysis found them inching up from 2.38% to 2.43% a year after the settlement.

So “typical” means roughly 5% to 6% in total, and your own rate is a choice.

Commission rates in California: negotiable by law

California’s Department of Real Estate requires a specific notice in listing and sales agreements for residential property of up to four units. The RE 6 disclosure rules say the notice must read that commission rates are not fixed by law, are set by each broker individually, and may be negotiable between seller and broker. It must be in at least 10-point boldface type and sit before the compensation provision.

The DRE’s consumer alert goes further. It cautions that claims of a “standard” commission misrepresent the law. It also tells buyers to insist on clear written agreements and to treat hidden or unexplained fees as red flags.

If an agent says “5% or 6% is what everyone charges,” that is a pricing choice, not a rule. Ask for the rate in writing, then ask what each dollar buys.

Who pays realtor fees after the NAR settlement

The settlement took effect on August 17, 2024. The Federal Reserve explains the main changes. Listing agents can no longer advertise or offer buyer-agent compensation through an MLS listing, and brokerages must use buyer representation agreements that set out compensation terms.

In practice:

  1. Your listing agreement states what you pay your listing agent and what, if anything, you will pay a buyer’s agent, per U.S. News.
  2. The buyer signs their own agreement with their agent, confirming what that agent will be paid. If you offer less, the buyer covers the difference.
  3. Seller concessions are still allowed. HUD’s counseling report notes sellers may offer closing-cost help or compensation to a buyer’s agent, but that offer can’t be shared on an MLS.

For a seller, the practical question is whether you want to offer buyer-agent compensation up front. Buyers working with an agent often factor it into which homes they tour. Many sellers decide this alongside their price strategy instead of treating it as a separate fee.

What the fee changes in dollars

Here is a worked example on a $900,000 home, a realistic price for a Chino Hills move-up house. The percentages are illustrations of the arithmetic, not a quote.

Structure Calculation Fee
Standard listing, 5.5% total $900,000 × 5.5% $49,500
Standard listing, 6% total $900,000 × 6% $54,000
Demand Blueprint, 2.5% $900,000 × 2.5% $22,500
Full Service + Media Plus, flat fee one-off $15,800
Full Service, flat fee one-off $12,500
Essentials, flat fee one-off $9,500

A flat fee does not move with your price. If your home sells for $1,100,000 instead of $900,000, a percentage fee grows by $5,000 at 2.5%, while a flat fee stays put. The Consumer Policy Center found that a seller using a 1.5% agent instead of a 3.0% agent spends $6,000 less on a $400,000 home. Lower fees compound as prices rise.

What matters next is what the fee covers. A low number attached to a thin service can cost you in the offer you receive. A low number attached to full marketing and strong buyer demand leaves more equity with you.

Flat fee, reduced fee or percentage: choosing a structure

There are three common ways to pay.

Percentage of the sale price. The traditional route. You pay more as the price rises, and the incentive is to close, not to push the price.

Reduced percentage. Same logic at a lower rate. Our Demand Blueprint is priced at 2.5% and is built around engineering buyer competition so that offers arrive quickly and compete against each other.

Flat fee. A fixed dollar amount, regardless of price. Our sell options page lists three published tiers:

  • Essentials: $9,500 one-off.
  • Full Service: $12,500 one-off.
  • Full Service + Media Plus: $15,800 one-off.

Our separate Equity Advantage Listing is designed to leave more equity with the seller than a standard-commission listing.

A useful test is to run your own number. Take your expected price, multiply by each rate, and compare the dollar result with the services in writing. The cheapest fee is not automatically the best deal, and the highest is not automatically the most service.

How to negotiate a realtor’s fee

According to Redfin data, 37.4% of sellers negotiated or tried to negotiate their commission. Negotiating is normal and expected. Here is how to do it well.

  1. Get two or three proposals in dollars. Ask each agent to show the fee at your expected price and at 5% above and below it.
  2. Separate the two sides of the fee. Ask what is being proposed for the listing side and what, if anything, for a buyer’s agent.
  3. Compare services, not just rates. Ask who attends showings, who writes the marketing, who negotiates offers, and who you will deal with day to day.
  4. Ask what happens if it doesn’t sell. A written commitment on timeline matters more than a verbal one. Ours is the 14-Day Sale Guarantee, which promises sellers an acceptable offer within two weeks or they get paid.
  5. Read the term and exit clause. Know how long you’re bound before you sign. Our guide on how to cancel a listing agreement in California explains how that works.

One trade-off to keep in mind: the lower the buyer-agent offer, the more the buyer may need to cover. That is a pricing decision, and it is cleaner to settle before you list than in the middle of an offer.

Seller closing costs in California beyond commission

Commission is the biggest line, not the only one. The DRE’s escrow guide says customs vary by region, and fees are ultimately decided by agreement between the parties. In Southern California, sellers usually pay for title insurance and the documentary county transfer tax, and split the escrow fee with the buyer.

The county transfer tax is $1.10 per $1,000 of the sale price statewide. Some cities add their own tax. On $900,000 that county tax is $990.

Other items that commonly appear on a California seller’s side include:

  • Owner’s title insurance premium
  • Escrow fee (often shared)
  • Recording fees
  • A natural hazard disclosure report
  • HOA document and transfer fees
  • Property tax prorations
  • Payoff of your loans, including per-diem interest
  • Any negotiated credits or repairs

This list follows what California net sheets typically include. We go through each line in our guide to seller closing costs in California.

The DRE is clear that the final allocation is written into your purchase contract. If a number surprises you, it should be a number you have already discussed.

Build your seller net sheet

A seller net sheet is a one-page estimate of the cash you walk away with. It starts with the sale price and subtracts loan payoffs, brokerage compensation, title and escrow fees, taxes, prorations, credits and concessions. It is an estimate prepared before you commit to a price, not the official settlement statement.

Here is an illustration on a $900,000 sale with a $400,000 loan payoff. The non-commission lines are placeholders to show structure, so your own figures will differ.

Line Amount
Sale price $900,000
Loan payoff −$400,000
Commission at 5.5% total −$49,500
County transfer tax −$990
Title, escrow, recording, reports (placeholder) −$6,000
Prorations and credits (placeholder) −$2,000
Estimated net $441,510

Swap in a 2.5% commission and the commission line becomes $22,500. The estimated net rises to $468,510, a $27,000 difference with every other line unchanged.

Run the sheet at three prices before you list. It shows how much a stronger offer is worth to you, and it keeps you from setting a move-up budget on equity you won’t actually receive.

Why the fee should follow the strategy

The fee only makes sense next to the plan. Move-up sellers in Chino Hills, Chino, Eastvale and Ontario usually need to sell and buy without a gap between homes. That means timing and certainty matter as much as the headline rate. Our guide to listing first with a sale contingency or a HELOC walks through that choice. If you are 55 or older, Proposition 19 may let you carry your property tax base to your next home, which changes how you set a budget.

A good fee conversation covers all of that, not just the percentage.

Our approach to fees

Commission is the one cost on your net sheet that you control before you list. Most sellers never see it that way because they are told a rate is standard. It isn’t, and California law says so in bold type.

We built our offers around that fact. I personally run every deal at BLDG Realty, so the person who prices your fee is the person who runs your sale. The Demand Blueprint is designed to engineer buyer competition, so that offers come in quickly and push each other up. The 14-Day Sale Guarantee puts the timeline in writing. And the flat-fee and Equity Advantage options are there for sellers who want more of their equity to stay with them.

My advice: price your home, run your net sheet at each fee structure, and pick the plan that leaves the most in your pocket with the service you actually need.

Mike Velez

See your options at your price

If you’re planning to sell in Chino Hills, Chino, Eastvale or Ontario, the quickest way to compare is to see our published structures side by side: Demand Blueprint at 2.5%, and flat fees of $9,500, $12,500 and $15,800. You can review them on our sell options page, then talk to us about which fits your timeline. Buyers can look at our VIP Buyer Program, and families selling and buying together can ask about our Move-Up/Down service.

BLDG Realty

For more local guides, see our Inland Empire resources.

FAQ

What is the average real estate commission in California?

California has no fixed rate, and the DRE says so. National surveys put the average total near 5.4% to 5.6%, and California listings often fall in that range. Your own rate is whatever you agree in the listing agreement.

Who pays realtor fees in California?

Sellers have traditionally paid both agents’ commissions. Since August 2024, the listing agreement states what the seller pays the listing agent and what, if anything, the seller pays a buyer’s agent. Buyers sign their own written agreement, and if the seller offers less than the agreed amount, the buyer covers the difference.

Can I negotiate a realtor’s fee?

Yes. California requires a notice that commission rates are negotiable between seller and broker. Compare proposals in dollars at your expected price, and compare what each one includes.

Who pays closing costs in California?

It depends on the contract. In Southern California, sellers usually pay for title insurance and the county transfer tax, and the escrow fee is usually split. The final allocation is whatever the purchase agreement says.

What is a seller net sheet?

It is an estimate of the cash you receive at closing: the sale price minus loan payoffs, commission, title and escrow fees, taxes, prorations and credits. Your agent should prepare it before you agree to a price.

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