How Much Do Real Estate Agents Charge to Sell a House in California?

If you’re thinking about selling your home in California, one of the first questions that probably comes to mind is: How much do real estate agents charge to sell a house? It’s a fair question – and a crucial one. California’s housing market is one of the most competitive (and expensive) in the country. With home prices often reaching well above the national average, the cost of selling can quickly add up.

Between agent commissions, closing costs, and other fees, many sellers are shocked to see how much money they lose to transaction costs. This article breaks down exactly what you’ll pay in real estate agent commissions in California, how those fees are structured, and what alternatives you have if you’d rather keep more of your hard-earned equity.

How Real Estate Agent Commissions Work in the State of California

Real estate agents don’t typically charge hourly rates or flat fees. Instead, they earn a commission based on a percentage of your home’s final sale price. Here’s the general setup:

• The listing agent (the one who helps you sell your home, also called the seller's agent) and the buyer’s agent (the one who represents the buyer) share the total commission.
• That commission is usually split 50/50 between the two agents. That means a 5–6% total typically becomes about 2.5–3% to each side.

For example:

If your home sells for $800,000 and the total commission rate is 5%, that’s $40,000 in total commissions. Typically, the listing agent and buyer’s agent each walk away with $20,000 (though their brokerages may take a cut). That’s a serious chunk of your profits—and it’s why understanding these costs is so important.

What Is the Average Real Estate Commission in California?

If you're wondering what percentage most realtors charge in California, real estate commissions in the Golden State generally range from 5% to 6% of the home’s final selling price. According to the latest data, the nationwide average commission has been around 5.37% in recent years. That said, commission rates can vary, influenced by several factors.

• Local competition: More agents in the market often means more flexible commission rates.
• Property value: Luxury homes often come with lower percentages but higher total payouts.
• Market demand: In a hot California housing market, agents may agree to reduced rates since homes sell faster.
• Level of service: Full-service agents who handle staging, marketing, and negotiation may charge the higher end of the range.

So, while there’s no fixed rate, understanding where you fall within these averages helps you plan realistically.

Regional Realtor Fees Differences

It’s also worth noting that commission structures can vary between Northern and Southern California.

• In Northern California, especially in areas like San Francisco, San Jose, and the Bay Area, home prices are among the highest in the state. Because of this, agents there often accept slightly lower commission percentages (sometimes around 4.5% or less) since even a small cut translates into large sums.
• Meanwhile, in Southern California, particularly in markets like Los Angeles, Orange County, and San Diego, commissions tend to hover closer to the 5–6% range, as competition among agents is fierce and marketing costs can be higher. In smaller, rural, or inland SoCal markets (like Riverside or the High Desert), rates can even stretch toward the higher end of that range. You can expect closer to 6% because homes take longer to sell and require more effort.

So, where your home is located in California can make a noticeable difference in how much you’ll pay in agent commissions.

Who Pays the Real Estate Agent Fees in California?

This one surprises many first-time sellers: until recently, the seller typically paid both agents’ commissions. That meant that when you sell your house, you’re responsible for covering both the listing agent’s and buyer’s agent’s fees. The total amount is taken directly from your sale proceeds at closing. For instance, if your home sells for $900,000 and the total commission rate is 5%, you’ll owe $45,000 in commissions, even though only one of those agents represents you.

It’s worth noting that commissions are negotiable (more on this below), but most sellers find that agents are reluctant to significantly lower their rates. After all, commissions are how they make their living. However, major legal changes in 2024-25 have altered who pays what. Under a 2024 settlement of a National Association of Realtors (NAR) lawsuit, sellers are no longer automatically required to pay the buyer’s agent fee.

Now the parties negotiate commission payments upfront.

Can You Negotiate with Realtor Fees in California?

Absolutely. Agent commissions are not fixed by law, and every seller has the right to negotiate. California law explicitly states that “the amount or rate of real estate commissions is not fixed by law” and must be negotiable. Following the National Association of Realtors lawsuit settlement, sellers and buyers must now negotiate realtor fees with their agents separately.

Sellers can still offer to pay the buyer’s agent commission, but this must be negotiated outside of the MLS. This new rule aims to create more transparency and competition among agents. In practice, this often means the seller still offers to cover the buyer’s agent commission (as an incentive to buyers), but it’s not mandatory.  Sellers today are generally only obligated to pay their listing agent’s commission, which on many homes is roughly 2.5–3%.

Buyers and their agents must agree separately to a fee (often via a buyer-broker agreement), so in effect a seller might negotiate to pay 2.5–3% to the listing agent and offer (for example) 2.5% as a buyer-agent incentive. Before signing anything, ask agents what commission they charge and whether they’ll accept a lower rate. Many agents will negotiate, particularly if they really want your listing.

What Can You Do

Here are a few practical ways to lower your commission rate:

• Interview multiple real estate agents. Compare what each one offers for the price. An agent quoting 3% but who markets aggressively and negotiates hard may yield a higher net sale than a 1.5% agent who does less. Balance cost vs. value.
• Offer dual agency opportunities. If the same agent represents both buyer and seller, they earn the entire commission (listing plus buyer share), which means they may accept a reduced commission. In California, dual agency is allowed with disclosure, but check state laws: some states limit dual agency or require special consent.
• Leverage market conditions. In a strong California housing market, homes move quickly, giving sellers more leverage.
• Educate yourself on contracts and disclosures. California has many required forms (C.A.R. forms) detailing commission clauses, agency disclosures, and consumer rights. If unsure, consult an attorney or experienced broker.

Still, even if you negotiate down to 4%, that’s $32,000 on an $800,000 home. Saving a few percentage points is nice, but it doesn’t erase the sting of losing a major slice of your equity.

What Do You Get for the Real Estate Commission You Pay?

So what exactly are you paying for? The listing agent’s commission funds all the work they do to market and sell your home. A full-service listing agent typically handles:

• Market Analysis & Pricing Strategy: Setting the right price using comparable sales and current market trends to recommend a competitive listing price to maximize proceeds.
• Marketing the Property: Professional photos, listings on the MLS and popular sites, and possibly paid advertising, yard signs, and other marketing materials.
• Hosting Open Houses & Showings: The agent arranges and runs open houses or private showings. They may take care of the home staging, coordinate tours, and highlight your home’s features to potential buyers.
• Negotiating Offers: Once offers come in, the agent advises you on terms and negotiates with buyers or their agents to get the best price and favorable conditions. They manage counteroffers, contingencies, and help finalize the purchase agreement.
• Transaction Management Through Closing: The agent guides the deal through inspections, repairs, appraisal, and closing. They coordinate with escrow/title, lenders, and attorneys to ensure real estate transaction paperwork is prepared and deadlines met. The agent also helps resolve any issues that come up before the final sale.

For some homeowners, these services are worth the cost. A great agent can help boost your final sale price and reduce stress. But for others, especially in hot markets or when selling less desirable properties that need work , the value proposition becomes murkier. When homes need work, paying tens of thousands in realtor fees can feel unnecessary.

Calculating Your Agent Fees

To estimate your commission costs, multiply the sales price by the commission rate. For example, a 5% total commission on a $500,000 home is $25,000. Typically, that would be split ~$12,500 to each agent (2.5% each). Similarly, a $1,000,000 sale at 5% yields $50,000 in total fees ($25,000 each)

On a median California home (~$880,000–$900,000) at the recent 5.1–5.2% average, total commissions would be approximately $45,000–47,000. Use these calculations to plug in your own price and rate.

Hidden Costs Beyond the Real Estate Commission

The commission isn’t the only cost to watch for. Selling a house in California comes with a laundry list of other expenses that quietly eat away at your net proceeds. Common additional costs include:

• Home staging: $1,000–$5,000, depending on property size and style.
• Home repairs and updates: Painting, landscaping, or fixing inspection issues.
• Escrow fees and title fees: Typically $1,000–$2,500 combined.
• Closing costs: Usually 1% to 3% of the sale price.
• Seller concessions: Credits offered to buyers to close the deal.

All in, these can add up to 8% to 10% of your home’s value once everything’s said and done. On a $900,000 sale, that’s nearly $90,000 gone before you even collect your check.

Alternative Options to Avoid Agent Fees

Do you really need a real estate agent to sell your home? If the idea of handing over tens of thousands to agents doesn’t sit right with you, you do have alternatives.

1. For Sale by Owner (FSBO)

In California, you’re not required by law to use an agent. You can sell your home yourself, skipping the listing agent entirely. You’ll save on commission, but you’ll also be responsible for everything – pricing, marketing, showings, and negotiating. It’s time-consuming, and most FSBO sellers still end up offering a buyer’s agent commission to attract buyers.  Many FSBO homes also do not sell as quickly or as high-priced, so this is a trade-off.

2. Discount Brokerages and Flat-Fee MLS Listings

Some companies offer to list your home on the MLS for a flat rate (anywhere from $500 to $2,000). This can save you money, but you’ll still handle showings, paperwork, and communication with buyers. These approaches can work, but they’re not for everyone, especially if you’re short on time, don’t want the stress of managing a real estate transaction, or need to sell quickly.

3. Cash Home Buyers

Selling directly to cash buyers is becoming an increasingly popular alternative, especially in California’s fast-paced market. Local investors and professional cash homebuying companies purchase properties outright without relying on financing or traditional listings. That means no real estate commissions, no listing fees, no home repairs, and no waiting months for offers to roll in. 

This option is ideal for sellers who value speed, convenience, and certainty. At SleeveUp Homes, we buy houses as-is for top dollar and help California homeowners sell fast and keep more of their profits.

Sell Your House Fast As-Is & Keep More of Your Money with SleeveUp Homes

If you’re looking for a way to skip real estate agent commissions, repairs, listings, and closing costs in California entirely, SleeveUp Homes is your best option. We’re local Southern California cash buyers who purchase homes directly from homeowners. No listing agents. No buyers’ agents. No commissions. No closing costs.

Here’s how it works:

• We buy homes as-is. No need to spend a dime on repairs, cleaning, or home staging.
• No closing costs or hidden fees. What we offer is what you get.
• Fast closings. We can close in as little as 7 days if needed, not months.
• Guaranteed top dollar. We’ll beat any legitimate offer by $10,000.

That means you get the convenience of a quick, hassle-free sale, without having to settle for less than you deserve. You walk away with more money in your pocket, faster, and without the headaches of traditional home selling. Whether your property needs work, you’re relocating, or simply don’t want to deal with middlemen, SleeveUp offers a simpler, more profitable path – a straightforward home buying process designed around your needs and timeline.

Know Your Options Before Selling Your California Home

To recap: How much do real estate agents charge to sell a house in California? Usually between 4.5% and 6% of your home’s sale price. Add in staging, repairs, and closing costs, and you could easily lose 8–10% of your home’s value to transaction expenses. For many home sellers, that’s tens of thousands of dollars gone.

Working with a traditional listing agent may still make sense for some, but if your goal is to sell fast, avoid realtor commissions, skip home renovations, and keep as much equity as possible, a cash homebuyer like SleeveUp Homes is the smarter move. You’ll get a fair, transparent offer after one quick walk-through of your property, and you can close on your timeline – in as little as 7 days or longer if you need more time.

So, before you list with an agent and give up a large cut of your earnings, get a free, no-obligation cash offer from SleeveUp. It might just be the best financial decision you make this year.

Author:

Cesar Gomez , Broker /

Cesar has worked as a real estate agent and broker in the southern California region since 2013.

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