By Eric Berman, REALTOR® | The Eric Berman Team at Compass
TL;DR:
Real estate commission isn't a fixed rate — it's negotiated in the listing agreement, and following the 2024 industry changes, buyer-agent compensation is now its own separate conversation. The more useful question than "what's the percentage" is what a seller nets after the sale, since strong marketing and pricing often outweigh a difference in fee.
There Is No Fixed Commission Rate
Commission is one of the most discussed and most misunderstood parts of selling a home, largely because sellers often believe there's a set rate. There isn't. Commission is agreed to in the listing agreement between the seller and the brokerage, and it has always been negotiable — no law or rule fixes it at any particular number. While certain ranges are common in a given market, the specific figure is a matter of agreement, not a standard everyone is bound to.
What's changed more recently is how the buyer's side is handled. Following the 2024 industry settlement, buyer-agent compensation is no longer assumed or advertised through the MLS the way it once was. That makes the commission conversation more transparent and more genuinely negotiable than in years past — and it means a seller should understand exactly what they're agreeing to, and for whom. For the broader picture of how commission fits among the other costs of a sale, the overview of how closing costs are handled for sellers on Long Island sets it in context.
What Commission Actually Pays For
Commission isn't a fee for unlocking a door — it's compensation for the full machinery of selling a home well. That includes pricing strategy grounded in real comparable data, professional marketing and photography, exposure to the active buyer pool, showing coordination, negotiation of offers and terms, and management of the transaction from accepted offer through closing. In an attorney state like New York, it also means coordinating smoothly with the real estate attorneys who handle the contract and closing.
The reason this matters is that the work directly affects the sale price. A well-marketed, well-priced, well-negotiated listing frequently sells for more than a comparable home handled with less rigor — often by a margin larger than the entire commission. That's why the fee is best understood as tied to execution, not as a flat toll on the transaction.
Cost vs. Value: The Question That Actually Matters
It's natural to focus on commission as a cost, but the number that determines a seller's outcome is net proceeds, not the fee in isolation. A lower commission paired with weaker pricing, thinner marketing, or softer negotiation can easily leave a seller with less in hand than a standard commission paired with strong execution. The headline percentage is only one input into the final number.
That's the reframe worth making: the real question isn't "what's the lowest commission I can get," but "which arrangement nets me the most after the home sells." Sometimes that's a negotiated rate; often it's about the quality of the strategy behind the listing. For a fuller look at how all these levers connect, the overview of how to net the most from a sale walks through the trade-offs.
How to Evaluate What You're Paying For
Because commission is negotiable and tied to service, the most useful thing a seller can do is evaluate the whole package rather than shop on price alone. That means looking at an agent's pricing approach, marketing plan, track record, negotiation skill, and local knowledge — and asking directly how buyer-side compensation will be handled in the current environment. A clear, straightforward answer to that question is itself a signal of how the rest of the process will go.
The goal isn't to pay as little as possible or as much as possible — it's to understand exactly what the commission covers and to judge whether the strategy behind it will produce a strong net. A seller who evaluates value that way tends to make a better decision than one who anchors only on the percentage.
FAQs
Q: Is real estate commission negotiable?
A: Yes. Commission has always been negotiable and is agreed to in the listing agreement rather than fixed by any rule. Common ranges exist in every market, but the specific figure and structure depend on the property, the services provided, and the agreement between the seller and the brokerage.
Q: Does the seller still pay the buyer's agent?
A: Not automatically. Following the 2024 industry changes, buyer-agent compensation is negotiated separately rather than assumed or advertised through the MLS. A seller may still choose to offer it as a way to attract buyers, but it's now a distinct decision rather than a fixed part of the commission structure.
Q: Does a lower commission mean a seller keeps more money?
A: Not necessarily. Net proceeds depend on pricing, marketing, and negotiation as much as on the fee. A lower commission paired with weaker execution can net less than a standard commission paired with strong strategy, so the fee alone doesn't determine the final outcome.
Q: What services does commission cover?
A: Commission typically covers pricing strategy, professional marketing and photography, buyer exposure, showing coordination, offer and term negotiation, and transaction management through closing. In New York, it also includes coordinating with the real estate attorneys who handle the contract and the closing itself.
Q: How should a seller evaluate an agent's value?
A: By looking at the full package — pricing approach, marketing quality, negotiation skill, track record, and local expertise — rather than the fee alone. Asking directly how buyer-side compensation will be handled is also worthwhile, since a clear answer signals how transparent the rest of the process is likely to be.
Commission is more flexible, and more worth understanding, than the old "it's just a percentage" framing suggests — especially now that the buyer's side is its own conversation. The figure matters, but what it buys in strategy and execution matters more, because that's what shapes the final net. For anyone weighing what their home might bring and what they'd keep after selling, a quiet look at current home values is a useful starting point, and talking through commission and strategy anytime is welcome too.
By Eric Berman, REALTOR® | The Eric Berman Team at Compass
Eric Berman | Long Island & Queens REALTOR® | Compass
1468 Northern Blvd, Manhasset, NY 11030
(917) 225-8596 | eric@ericbermanteam.com | theericbermanteam.com
