What Are Realtor Fees, Who Pays Them, and Can I Sell Without A Realtor?

The housing market is complicated, and one of the trickiest parts of trying to sell a house is the number of fees and commissions that can be involved. A few questions that we encounter a lot are what are realtor fees, who pays them, and can I sell without a realtor? We’re here to help you learn the basics of realtor fees so you can find the best way to sell your house, whether that be by enlisting the help of a real estate agent or by selling your property without a realtor.

What is a realtor?

A realtor, like a real estate agent, is a licensed professional who works with homeowners to buy, sell, and rent properties. Their responsibilities include representing home sellers and buyers, negotiating prices and offers, and overseeing the procedures of the listing and purchasing processes, which includes showings, inspections, appraisals, and closings. Their end goal is to help their clients navigate the housing market and to reach a successful closing.

For their work, realtors are paid by commission. After closing, the realtor fee is paid from a percentage of the home’s final selling price.

Who is expected to pay the realtor fees and why?

Most often, the seller will pay their realtor fees out of the proceeds from selling the house. The realtor fees are usually calculated into the selling price when the house is listed. For example, if I flipped a house and posted it on Facebook or Zillow for sale by owner, I might list the house at a lower price because I do not have to pay fees for a selling agent. However, if I instead chose to commission a realtor to list the house, then we would factor the cost of realtor fees into the property’s listing price.

How much does it cost to work with a realtor, on average?

Until recently, a home seller in Georgia could expect for 5-6% of their property’s selling price to be split between both the selling and the buying agents. However, this system changed in August of 2024: following the settlement of the National Association of Realtors (NAR) lawsuit, the seller no longer has to pay the realtor who represents their buyer; they now only have to pay the commission of their own listing agent, though they can negotiate to also pay the commission of the buying agent if the home’s final selling price is increased accordingly.

How do you negotiate fees with a realtor?

Though the previously expected realtor fee was 5-6% in Georgia, home sellers often negotiated with realtors in order to pay lower commissions, which is still an option. For example, a realtor may consider a discounted commission if the house you are listing is already in really good shape, decluttered, and market-ready. Or, with the current housing shortage, you may also be able to find selling agents who will list for a discounted rate due to the lack of houses available to list. A realtor may also discount their fee if you use them as your buyer’s agent on your new house purchase; the realtor would then make a commission on listing your current house and selling you another house. 

Can you save money on realtor fees? If so, how?

There are plenty of ways to save on realtor fees, or to avoid them altogether. One of these ways is to list without a realtor on a for sale by owner (FSBO) basis. Another options is to list with a discount real estate broker. However, both of these choices come with a caveat: you have to do a lot of the work that an agent would normally do. Another choice that offers a way to sell without a realtor altogether is a direct sale.

For sale by owner

FSBO can be especially difficult for homeowners who are unfamiliar with the buying and selling process. When you list a house yourself, it falls completely to you to ready your property for selling, take listing photos, market your house, arrange showings, and negotiate offers. Once you receive an offer, you also have to make sure that the buyer is doing their part in the transaction: handling mortgage approval, arranging an inspection, setting the closing date, etc. This method of listing without a realtor can be a lot of work for a homeowner with no experience in the housing market.

Discount real estate brokers

Discount real estate brokers offer a way to sell your home with an agent to handle most of that work at a discounted rate. These professionals reduce the listing commission, so instead of paying 5-6% in fees, you pay 4-5%. However, because of this discounted rate, you will have to handle some of the smaller responsibilities of an agent, such as taking your own pictures for the listing and hosting your own open house. This can be a good compromise between paying a larger commission and listing completely without a realtor.

Direct sale to a professional homebuyer

There is an option that eliminates both the extra cost of realtor fees and the extra work of listing, and that is selling directly to a local professional homebuyer. These companies acquire residential real estate in order to rent it, flip it, or resell it in order to turn a profit. Professional homebuyers typically buy properties as-is in cash, with no commissions involved. Selling to them eliminates the work that a realtor would usually handle, such as showings, inspections, and appraisals, making the selling process both faster and cheaper for the seller. Because you won’t have to invest in any commissions or repairs, expect an offer from a professional homebuyer to be a slightly lower market value than you might get from a traditional buyer. For sellers who want to offload properties as quickly and cheaply as possible, this is one of the best ways to sell without a realtor.

Summary

Realtor fees are a fair way to pay for the services of a real estate agent and ensure that you have professional help when selling your house. However, if you are in a position where you can’t or don’t want to spend money on realtor fees, you have options for selling without a realtor. You can find less traditional selling methods, such as placing your house up for sale by owner or working with a professional homebuyer, or you can even negotiate to pay reduced commissions to an agent. Whatever your situation, you have plenty of options when selling your property, with or without a realtor.

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