On a $300,000 home sale, the realtor commission runs $15,000 to $18,000. That single line item is the largest cost most sellers face, paid entirely from the proceeds at closing before anything else is distributed. Understanding exactly how that number is calculated, where it goes, and whether it is avoidable is useful information before you commit to any selling strategy.
How the Commission Is Calculated
The commission is a percentage of the final sale price, not the list price. If you list at $310,000 and accept $295,000, the commission applies to the $295,000.
Using round numbers for illustration:
| Sale price | 5% commission | 5.5% commission | 6% commission |
|---|---|---|---|
| $250,000 | $12,500 | $13,750 | $15,000 |
| $300,000 | $15,000 | $16,500 | $18,000 |
| $400,000 | $20,000 | $22,000 | $24,000 |
| $500,000 | $25,000 | $27,500 | $30,000 |
These are illustrative. Your actual commission depends on the rate negotiated with your listing agent.
Where the Commission Goes: The Split
The total commission is not paid to one person. It is divided between the listing agent and the buyer’s agent, typically 50/50 or 60/40 depending on the negotiation. Each agent then splits their portion with their brokerage.
For a $300,000 sale at 5.5 percent total ($16,500):
- Listing agent side: $8,250 (shared with listing brokerage)
- Buyer’s agent side: $8,250 (shared with buyer’s brokerage)
The listing agent might keep 70 percent of their $8,250 ($5,775) after the brokerage split. An individual agent’s actual take-home is substantially less than the total commission figure.
This matters because it explains why the commission amount feels large to sellers but does not make individual agents wealthy on any single transaction: overhead, brokerage splits, taxes, marketing costs, and insurance all reduce the individual agent’s net significantly.
Who Pays It and When
The seller pays the commission. It is deducted from the proceeds at closing by the title company or closing attorney before the net sale proceeds are distributed. You do not write a check; the title company handles the deduction automatically.
Recent changes to how buyer-agent compensation is disclosed (following the 2024 NAR settlement) have shifted some conversations about who funds the buyer’s agent. In practice, sellers still fund the full commission in most deals, either directly or because their net price is negotiated with that cost embedded.
How a Traditional Sale Compares to a No-Commission Path
Paying commission makes the most sense when the agent delivers a sale price high enough to more than offset the fee. In a competitive market with a move-in-ready home, a skilled agent who secures multiple competing offers can absolutely earn their commission.
Where it is harder to justify: when the home needs significant work (buyers discount heavily regardless), when the seller needs to close fast, or when the market is slow and the listing would sit for months accumulating carrying costs.
For sellers in those situations, the alternatives are worth examining:
| Path | Commission cost | Trade-offs |
|---|---|---|
| List with a full-service agent | 5-6% | Highest likely gross price, but highest cost and longest timeline |
| FSBO (for sale by owner) | 0% listing side, possible 2.5-3% buyer-agent | Saves listing commission; requires significant seller effort |
| Direct cash buyer | 0% | No agents, no commission, lower gross price but often competitive net |
See how selling without a realtor works and what the actual savings look like after accounting for price differences.
You can also run both scenarios through the net proceeds calculator to compare what you keep after commission versus what you keep from a no-commission cash sale.
Green Flags and Red Flags When Interviewing Agents
Green flags: The agent provides a written comparative market analysis and a realistic price range. They disclose their commission rate and the buyer-agent offer upfront. They have a track record of selling similar homes in your area within a reasonable timeframe.
Red flags: An agent suggests a significantly higher list price than the market supports (a practice called “buying the listing” to win your business, only to reduce the price later). An agent is vague about how commission is split or what services are included. An agent pressures you to sign a long-term listing agreement before answering your questions.
The Bottom Line
On a $300,000 home sale, the realtor commission costs you $15,000 to $18,000 at standard rates. It is the largest fee in a traditional transaction and it comes out at closing before you see any proceeds. Whether that fee is worth paying depends on what the agent delivers in price, speed, and certainty compared to alternatives.
If you want to see what you would net without paying any commission, request a no-obligation cash offer from Homewise and compare both numbers side by side before you decide.
