How much is real estate commission in California?

How much is realtor commission in California?

Realtor commission in California is whatever you and the broker agree in writing, and no figure is standard. Section 10147.5 of the Business and Professions Code requires this notice, word for word, right above the fee in any listing agreement for a home of one to four units: "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 the seller and broker." Buyer agreements carry the same notice for the buyer.

The fee can be a percentage of the sale price or a flat amount. A percentage moves a lot of money at Orange County prices. For example, on a $1,500,000 sale, every half a percentage point is $7,500. Run your own number at two or three rates before you meet anyone, so the conversation is about dollars and what they buy.

Commission is one line on your net sheet. Escrow, title insurance, any HOA transfer fees and Orange County's documentary transfer tax, $1.10 for every $1,000 of value, come out of the same proceeds. The selling page has the full cost table.

What changed with the 2024 NAR settlement?

The settlement changed how the buyer's agent gets paid, and it left the seller's own fee to negotiation as before. The National Association of Realtors agreed to pay $418 million over four years to settle the Sitzer/Burnett commission lawsuits. A federal court gave final approval on November 26, 2024, and an appeals court upheld it in August 2026.

The practice changes took effect on August 17, 2024. Two matter most to an Orange County seller:

• Offers to pay the buyer's agent can no longer be published on the MLS. Before, the listing usually showed what the seller would pay the agent who brought the buyer.
• A buyer must sign a written agreement with their agent before touring a home with them. The pay in that agreement has to be a clear amount or rate, never open-ended.

California added its own rules from January 1, 2025. A buyer agreement must be signed no later than the offer, can run no longer than three months, and cannot renew automatically. The buying page explains that agreement line by line.

Who pays the buyer's agent now?

The buyer agrees their agent's pay in writing, and the seller decides whether to contribute. Three outcomes are common: the seller pays it, the buyer pays it, or they split it. A request for the seller to pay usually arrives as a term in the buyer's offer, where it is negotiated alongside price, repairs and closing date.

As a seller, decide your position before the offers come in. Some sellers say in advance that they will consider paying the buyer's agent, which helps buyers who cannot also cover their own agent's fee. Others prefer to weigh each request against the price offered. Greg runs the numbers both ways with you, and the comparison that counts is your net proceeds from each offer.

How is a commission split once it is paid?

The commission is paid to the broker at the close of escrow, and the broker pays the agent. A California salesperson can be paid only by the broker they are licensed under, so the cheque never goes straight from you to the agent. How the broker and the agent divide it does not change what you pay.

If one brokerage represents both you and the buyer, that is dual agency, and California requires the relationship to be confirmed in writing in the purchase contract or a separate document both of you sign. The fee is whatever the two agreements say. A dual agent may not tell the buyer you would take less, or tell you the buyer would pay more, without the permission of the person whose position it is.

Are flat-fee and discount brokers worth it?

Flat-fee and discount brokers can be worth it when the seller is ready to do some of the work, and the honest comparison is service by service. Every option has to be a licensed California broker, and every listing agreement carries the same negotiable-fee notice. What changes is who does each job.

A flat-fee listing suits a seller who already has a buyer lined up, or who knows the market, can price from sales records and is home to run showings. It is a harder fit for a home with a complicated story. California sellers owe buyers a transfer disclosure statement on the home's condition whichever option they choose, and the seller is the one answering for it.

Each of the three can work for the right seller. Compare the net figure each would leave you with, after the fee and after the price each approach is likely to get, because a lower fee on a lower sale price can leave you with less.

What should a commission buy you?

A commission should buy the whole sale, from the price to the close, written down before you sign. At a minimum that means:

If an agent's fee covers less than this, the gap is work you will be doing yourself.

How do I negotiate commission with a listing agent?

Negotiate on the written scope first and the rate second. Ask each agent for the fee in writing with a list of what it includes, and compare those lists side by side. Then ask the questions that change the real cost: whether the fee changes if the same brokerage also finds the buyer, what happens if you cancel, and whether a fee is owed on a sale after the listing ends.

Check the term too. California requires an exclusive listing to have a definite end date, and a broker cannot collect on one that lacks it. A shorter term with a fair way out protects you more than a lower rate on a long contract. The guide to choosing a listing agent has the full list of interview questions.

How does Greg charge?

Greg Toussieng is a California real estate broker, DRE #01495415, and his fee is negotiable like every broker's. He puts it in writing at the first meeting with the list of work it covers, along with a net sheet showing every cost of your sale. His record is on the licensing page.

Commission is not the only number that moves a seller's net. If you are 55 or older and buying again in California, read what Prop 19 means for Orange County sellers before you set a timeline. If speed matters more than top price, selling two ways compares a cash offer with a full listing.