How Much Are Real Estate Agent Commissions in California?

Agent Commissions Have Changed — But They're Still Expensive

After the landmark NAR settlement in 2024, real estate commissions in California shifted. But don't assume fees dropped dramatically.

Current Commission Structure (2026)

Before the NAR settlement, sellers typically paid 5-6% total — split between listing and buyer's agents. Now:

• **Listing agent:** 2.5-3% (largely unchanged)
• **Buyer's agent:** Negotiable — buyers now negotiate directly with their agent
• **Total you might pay:** 4-5.5% if you offer buyer agent compensation

On a $600,000 LA home, that's $24,000-$33,000 in commissions alone.

What the NAR Settlement Actually Changed

1. Sellers no longer **must** offer buyer agent compensation on the MLS
2. Buyers must sign a written agreement with their agent before touring homes
3. Commission rates are more "negotiable" — but in practice, most agents still charge similar rates

Alternatives to Full-Commission Agents

• **Flat-fee MLS listing:** $500-$3,000 to get on the MLS without a traditional listing agent
• **Discount brokerages:** 1-2% listing fee (Redfin, Clever)
• **For Sale By Owner (FSBO):** No listing commission, but you handle everything
• **Cash buyer:** Zero commissions, zero fees

The Cash Buyer Alternative

When you sell to Fellow Homes, there are no commissions — period. No listing agent fee, no buyer's agent fee, no closing costs. The offer we make is the amount you receive.

For many sellers, eliminating $25,000+ in commissions more than makes up for a slightly lower sale price.

Ready to see your options? Call 310-845-6551 for a free cash offer.