Why It Can Still Make Sense

Why a 5% Commission Might Feel High

Why a 5% Commission Might Feel High, and Why It Can Still Make Sense

Why does paying around 5% in commission feel steep now, and what should you consider when deciding what you’re willing to pay?

Commission rates are fully negotiable, but what really matters is what you get for the fee. As a seller, you’re in control, and today’s shifting market means your decisions carry even more weight.

Why this came up: a real conversation with a seller

I recently met with a seller who hadn’t sold a home in several years. Back then, they remembered commission rates hovering around 4%. So when I shared a 5% commission structure, they were surprised. It felt high.

But here's the thing: a lot has changed in the market in the past year.

What’s typical for commission rates today?

Commission structures vary widely, but nationally, the average total commission is around 5.4%. That’s usually split between the listing agent and buyer’s agent. In many markets: 5% is standard, not premium

Some agents may quote lower rates, but the level of service, marketing, and representation often reflects that

You’re not locked into any number, commission is entirely negotiable and should reflect your goals

Why 5% might feel high, but isn’t out of the norm.

If you haven’t bought or sold in a while, it’s easy to assume rates haven’t changed. But compare the conditions:

In 2008-2010, the housing market was still rebounding from a major downturn. Low commission offers were common to attract price-conscious sellers.

During the pandemic, demand was very high and inventory levels were low, so homes were selling in a day with multiple offers.

Today, buyer demand is cooling, homes are sitting longer, and buyers must now sign broker agreements before touring homes.

To stand out in a slower market, your listing needs more strategy, exposure, and hands-on effort than it did even two years ago.

So that 5%? It’s not just a fee. It’s an investment in how your home performs in a more competitive environment.

You’re not just paying for time, you’re paying for strategy.

Here’s what that 5% commission typically supports:

Professional photography and videography
Marketing campaigns across social, digital, and direct outreach
Staging guidance and listing prep
Pricing strategy based on real-time market data

Skilled negotiation and contract management
Agent-to-agent networking and qualified buyer screening
Coordination with inspectors, appraisers, title companies, and more

The question isn’t whether 5% is too much. The better question is, “What kind of selling experience and outcome do I want?”

Navigating commission in today’s market

Buyers now sign agreements with their own agents. Some may choose not to tour homes that offer low buyer-side commission. What you offer can directly impact your traffic and the strength of your offers.

That doesn’t mean you must pay the highest rate. It means you should:

Know what’s included in the listing agent’s service.

Understand how buyer-side compensation influences your sale.
Evaluate the risk of a longer time on market and the added holding costs.
Decide whether you're prioritizing speed, price, convenience, or all of the above.

This is where your agent becomes your advisor. They should explain your options clearly and build a strategy around your goals.

Bottom line: you choose what you experience

As the seller, you are in full control.

You can negotiate the total commission
You can request flexible pricing structures, like tiered fees or bonuses for fast sales
You can compare agents not just on price, but on value and results

A lower commission might sound like a cost-saving move. But if it leads to fewer showings, longer time on market, and weaker offers, it could actually cost you more.

Instead, think about your ideal experience. Then choose a commission strategy that supports the result you want.