Home / Sellers Guide / Real Estate Commission in California
Sellers Guide
Who Pays Realtor Fees? Real Estate Commission in California
How agent commission works when you sell a California home, what is negotiable, and how to judge what you get for the fee.
Speak with a specialist
Free valuation
No obligation to sell
Fees in writing before you sign
Powered by Rise Realty, DRE #01957687. SellForMor is a listing team. We do not buy homes.
In short
• Commission is negotiable. No law sets it, and it is fixed only by the listing agreement you sign.
• Rules on how buyer-agent compensation is offered and disclosed changed in 2024. Ask any agent how those changes apply to your listing.
• Compare what is delivered for the fee, not just the percentage.
Who pays realtor fees and how commission works
Real estate commission is the fee paid to the brokerage that represents you in the sale. It is paid from your proceeds through escrow at closing, so you do not pay it out of pocket. The amount is whatever you and your brokerage agree to in the listing agreement.
In California, commission is not set by statute and is not fixed by the industry. Anyone telling you there is a standard or required rate is wrong. A rate that is common in your area is a starting point for conversation, not a rule.
What the fee covers
The fee funds the work of listing and selling: pricing, photography and marketing, showings, negotiation, disclosures, and coordination through escrow. It also covers brokerage supervision and the agent's costs. What a given fee actually includes differs widely between agents.
Buyer-agent compensation
Historically, a seller's listing often included an offer of compensation to the buyer's agent. Industry rules around how that compensation is offered, disclosed and agreed changed in 2024 following legal settlements. In general terms, buyers now typically sign written agreements with their own agents, and compensation is more openly negotiated. The details evolve, so ask your agent to explain current practice before you sign.
What you can negotiate
Because the commission is a contract term, almost every part of it can be discussed. Sellers often focus on the headline number and miss the other terms that affect what they pay and what they get.
• The total fee and how it is structured
• Whether and how much compensation is offered to buyer agents
• The length of the listing agreement and cancellation terms
• What marketing and services are included and guaranteed in writing
• What happens if the home sells to a buyer you found yourself
Value, not just price
A low fee on a poorly marketed home can cost far more than it saves. A higher fee only makes sense if it buys better pricing, stronger presentation and better negotiation. The question to ask every agent is simple: what exactly will you do for this fee, and who does it.
At SellForMor, the fee funds four specialists on every sale rather than one generalist handling everything: Marketing, Pricing, Selling and Negotiating. The idea is that each stage of the sale is handled by someone who does that job every day. We put the fee in writing before you sign.
Whatever team you choose, ask for the fee, the services and the cancellation terms in one document. Compare at least two proposals on the same basis. Our guide to choosing a listing agent lists questions worth asking.
Who pays realtor fees in a California sale
Realtor fees are paid out of the sale proceeds at closing, which in practice means the seller bears them unless the contract says otherwise. Commission is not set by law. It is negotiable between you and your brokerage, and it is written into your listing agreement.
Buyer agent compensation is also negotiable and is now discussed openly. Ask any agent to put the total fee, what it covers and who does each task in writing. Then compare plans on the net you would keep, not on the rate alone.
Questions
Commission: common questions
Is the real estate commission fixed in California?
No. It is negotiable and set by the listing agreement between you and your brokerage.
Who pays the buyer's agent?
It depends on the agreements in the transaction. Following the 2024 changes, buyers and sellers discuss this more openly, and it can be negotiated as part of the offer. Ask your agent how it would work for your sale.
When is commission paid?
At closing, through escrow, from your sale proceeds. You do not pay it if the sale does not close, subject to the terms of your listing agreement.
Can I cancel a listing agreement?
Only on the terms in the contract. Read the cancellation and protection-period language before you sign.
Is commission tax-deductible?
Selling costs generally reduce your taxable gain instead. Confirm with a CPA.
Get the fee and the plan in writing.
Start with a free home valuation. No obligation to sell.
Powered by Rise Realty, DRE #01957687. Serving Los Angeles, Orange County, Riverside, San Diego and San Bernardino.