The All-in-One Solution for California Homeowners
FAST ANSWER: California real estate commission is not set by law and is fully negotiable. The statewide average is 5.08% of the sale price, split between both agents, according to Clever Real Estate’s August 2026 agent survey. Since the August 2024 NAR settlement, buyers negotiate their own agent’s fee, so a seller’s realistic listing-side cost is closer to 2.5%–3%. Selling directly to a cash buyer removes commission entirely and can close in as few as 7 days.
What you pay in California real estate commission comes down to a few decisions you control: which agent you hire, the rate you agree to, and whether you offer to cover the buyer’s agent. No state law fixes the percentage. The standard California listing agreement treats it as a private negotiation between you and your broker, which means real estate commission rates in California vary from one listing to the next.
The rules shifted in August 2024. Under the National Association of Realtors settlement, buyer’s agent pay can no longer be advertised on the MLS, and buyers must sign a written agreement with their own agent before touring homes. For sellers, the old assumption that you automatically fund both sides is gone. Commission is still one of the largest costs of selling a house in California, so the useful comparison now is your listing-side fee against the alternatives.
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California real estate commission is negotiable and averaged 5.08% of the sale price in August 2026, split between the listing agent and the buyer’s agent (Clever Real Estate).
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Since the NAR settlement took effect on August 17, 2024, buyers sign a written agreement that sets their own agent’s pay, so sellers no longer owe that fee by default.
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A California seller’s realistic listing-side cost is about 2.5%–3%, and the state’s average listing fee was 2.57% in August 2026.
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Commission is deducted from your proceeds at closing, so you never write a separate check, but it still lowers what you walk away with.
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Negotiating, hiring a flat-fee brokerage, selling by owner, and selling to a direct cash buyer are the main ways to pay less.
After the 2024 NAR settlement, California sellers still commonly pay their listing agent, but buyers now negotiate their own agent’s fee directly. Before August 17, 2024, the listing agreement usually set one total commission. The listing broker then shared part of it with the buyer’s broker through an offer posted on the MLS, and the seller funded both sides, often without ever seeing the split spelled out.
That MLS offer no longer exists. A buyer working with an agent now signs a written agreement stating what the agent will be paid, along with a line confirming the fee is fully negotiable, according to NAR’s summary of the practice changes. The buyer can pay that fee, ask the seller to cover it as a term of the offer, or split it.
So do sellers still pay the buyer’s agent? Often, yes, but by choice. Your fixed commitment is the listing-side fee, which averaged 2.57% in California in August 2026 (Clever Real Estate). Many sellers agree to cover some or all of the buyer’s agent fee to widen the pool of buyers, and Redfin reported that fee averaged 2.42% nationally in Q3 2025. You can accept that request, reduce it, or trade it for a price concession.
Real estate commission in California is a percentage of the final sale price, paid out of escrow at closing. On a $700,000 home, a 3% listing fee equals $21,000. Cover a 2.5% buyer’s agent fee as well, and the total climbs to $38,500, before any other California closing costs.
None of it comes out of your pocket up front. The escrow officer deducts commission from your proceeds, which is one reason sellers tend to underestimate it until the final settlement statement arrives.
The agent on your listing doesn’t keep that whole fee. California agents work under a licensed broker and share each commission according to their agreement, with 70/30 and 80/20 splits common, and newer agents sometimes starting at 50/50. On a $21,000 listing fee, an agent on a 70/30 split takes home about $14,700.
That money also covers business costs. Agents typically pay for listing photography, signs and marketing, MLS and association dues, license renewal and continuing education, and errors-and-omissions insurance. Knowing where the fee goes gives you something specific to negotiate around, such as staging you’ve already handled yourself.
Yes, real estate commission in California is negotiable, and the standard listing agreement says so directly. The California Association of Realtors (C.A.R.) listing agreement states: “The amount or rate of real estate commissions is not fixed by law. They are set by each Broker individually and may be negotiable between Seller and Broker.”
Few sellers push back anyway. Some accept the first number because asking feels awkward. Others are short on time after a job move, a divorce, or an inheritance. A listing presentation is still a sales pitch, and agents expect questions about price, including what the fee covers and what it would be with fewer services.
Commission is a percentage, so the dollar cost scales with local home prices, far higher in the Bay Area than the Central Valley. The C.A.R. statewide median sold price was $901,420 in August 2026. At the 2.57% average listing fee, a seller at that price pays about $23,166. At the full 5.08% average for both agents, the bill reaches about $45,792.
The spread between counties is wide. In San Francisco, where the August 2026 median was $1,875,000, a 3% listing fee costs $56,250. The same 3% on Fresno County’s $430,000 median comes to $12,900, less than a quarter as much.
Here is what commission costs across major California markets at listing-side and full rates.
| County | Median sold price (Aug 2026) | Listing-side only (2.5%–3%) | Both agents (5%–6%) |
| Los Angeles | $946,950 | $23,674–$28,409 | $47,348–$56,817 |
| San Francisco | $1,875,000 | $46,875–$56,250 | $93,750–$112,500 |
| San Diego | $1,090,000 | $27,250–$32,700 | $54,500–$65,400 |
| Sacramento | $549,000 | $13,725–$16,470 | $27,450–$32,940 |
| Fresno | $430,000 | $10,750–$12,900 | $21,500–$25,800 |
| San Bernardino | $522,370 | $13,059–$15,671 | $26,119–$31,342 |
| Riverside | $632,990 | $15,825–$18,990 | $31,650–$37,979 |
Source: county median sold prices for existing single-family homes from the California Association of Realtors August 2026 home sales and price report, released September 16, 2026. Commission ranges are calculated from those medians and rounded to the nearest dollar.
Sellers reduce commission by negotiating, using a flat-fee brokerage, going FSBO, or selling to a direct cash buyer for zero commission. The six tactics below work inside a traditional listing. The three routes after them change how the sale happens.
Interview at least three listing agents and ask each one for the fee in writing. Agents who know they’re being compared will often sharpen their rate. The cost is time, since each meeting and listing presentation adds days before your home goes on the market.
Some brokerages charge a fixed fee or a reduced percentage in place of the 2.5%–3% typical listing fee. Service levels vary widely. Before signing, confirm who sets the price, runs showings, and negotiates offers on your behalf.
When one brokerage represents both you and the buyer, it may accept a lower total fee because it collects both sides. California requires the agency relationship to be disclosed and confirmed in writing, and a dual agent can’t tell the buyer you’d take less than your asking price. You save money but lose an advocate focused only on your side.
Agents compete harder for listings when homes sell fast, which is when a lower rate is easiest to win. C.A.R.’s statewide sales-price-to-list-price ratio was 98.9% in August 2026, so most homes were selling slightly under asking, which leaves sellers with less leverage than in a bidding-war market.
Some agents package photography, staging, and marketing into one set price. That can cut your total outlay. You’ll still handle showings, open houses, and keeping the home ready for buyers at short notice.
A move-in-ready home in a sought-after neighborhood takes less work to sell, and agents know it. Raise that point when you discuss the fee. Expect to keep the property spotless for walk-throughs while it’s listed.
Negotiation trims the fee. These three options can shrink it much further or remove it.
The seller usually pays the listing agent’s commission, deducted from the sale proceeds at closing. Since August 2024, the buyer’s agent fee is set in a written agreement between the buyer and their agent. The buyer can pay it directly or ask the seller to cover part or all of it in the purchase offer, and many California sellers still agree to.
Average realtor fees in California were 5.08% of the sale price in August 2026, according to Clever Real Estate’s agent survey. That total breaks down to about 2.57% for the listing agent and 2.51% for the buyer’s agent. Actual rates vary by brokerage, price point, and how much of the buyer’s agent fee the seller agrees to pay.
Yes. No California law sets a commission rate, and the C.A.R. listing agreement states that rates are set by each broker and may be negotiated between seller and broker. You can negotiate the percentage, ask for a flat fee, or agree to a lower rate in exchange for fewer services, as long as it’s settled before you sign.
Not by much so far. The NAR settlement, effective August 17, 2024, removed buyer’s agent compensation offers from the MLS and required written buyer agreements. Redfin found the average U.S. buyer’s agent commission was 2.42% in Q3 2025, slightly higher than a year earlier. Sellers did gain the option to decline or negotiate the buyer’s agent fee instead of covering it by default.
Selling by owner removes the listing fee, although a buyer’s agent may still ask you to cover their pay. The only route with no commission on either side is selling directly to a cash buyer or real estate investment company, where no agents are involved. Compare the estimated net proceeds of each option before you decide.
If speed and certainty matter more than squeezing out the last dollar, a direct cash sale is worth weighing against the traditional route. On a typical listing, the number to budget is the 2.5%–3% listing fee plus whatever share of the buyer’s agent fee you choose to cover. For a firm figure to compare against, Osborne Homes can make a no-obligation cash offer and close in as few as 7 days once the title is clear.
This article is general information, not legal, tax, or financial advice. Commission terms are set by contract, so review your listing agreement with a California real estate attorney, and talk to a CPA about how selling costs affect your taxes.
The Osborne Homes Team
The Osborne Homes team specializes in California real estate, helping buyers, sellers, and homeowners navigate the market with clarity and confidence. Our articles are written to provide practical guidance, local insight, and up-to-date information you can trust.
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