How Much Does a Real Estate Agent Cost? Is It Worth It?

Whether you’re buying or selling a house, you’re dealing with a lot of cash. But here’s the thing—just one mistake during the home-buying or home-selling process can cost you tens of thousands of dollars. And that, guys, is just no fun.

So, it’s no wonder why 88% of buyers and 91% of sellers decide it’s worth working with a real estate professional.¹ Because when you have a solid pro on your side, they’ll take care of the nitty-gritty details.

 

But I get it—working with a real estate agent does come with its own share of expenses. So sit back, and I’ll unpack the costs of hiring a real estate agent—and why it’s totally worth it.

How Much Does a Real Estate Agent Cost?

Real estate agents are typically paid a commission for helping you buy or sell a home. Many transactions involve commissions of around 3% per agent, totaling roughly 6% of a home's selling price.² In some cases, sellers may offer to cover part—or even all—of the buyer’s agent fees to sweeten the deal and to attract more offers.

Since the 2024 NAR settlement, there’s one important change to know about: Buyers are now required to sign a written buyer’s agent agreement before touring homes. This agreement outlines the buyer’s agent fee up front, so there are no surprises at closing.

But look . . . in real estate, every situation is different. So don’t be shy—ask your agent about the rules and costs that apply to you. The best pros will happily share exactly how much they charge for their services so you know the costs before committing.

For example, if a house sells for $400,000, the seller’s agent and the buyer’s agent might each earn $12,000 (roughly 3% commission, though actual rates vary and are always negotiable).

Who Pays the Real Estate Agent Commission?

Traditionally, sellers have paid the commission for both agents out of the home's sale proceeds. And in many cases, that still happens. But recent industry changes mean buyers now agree to their agent's fee up front, so it's important to understand how that works before you start shopping.

Today, sellers can still choose to cover some or all of the buyer's agent commission, and many do because it can help attract more offers. But they aren't required to. As a buyer, you’ll see your agent’s fee clearly outlined in your buyer’s agent agreement before you ever tour a home.

The good news? You can still ask the seller to cover your agent’s cost as part of your purchase offer. Many sellers are willing to do this to close the deal. Your agent can walk you through exactly how to handle that conversation.

Is a Real Estate Agent Worth the Money?

Okay, time to answer the question that brought you here! Are real estate agents worth the money? The answer is a big y-e-s, yes. And here’s why.

The Value of a Buyer’s Agent

When you hire a buyer’s agent, you’re getting someone on your side who looks at hundreds of homes every year and helps tons of families navigate the home-buying process. A buyer’s agent brings experience, market knowledge and negotiation skills to the table that can save you time, money and a ton of stress. Here are a few key advantages of working with a buyer’s agent.

A good buyer’s agent:

• Guides you to the right home in the best neighborhood for your needs
• Spots red flags so you don’t overpay or end up with the wrong house
• Makes sure you don’t overlook a home that’s actually a great fit
• Negotiates the best deals and advocates for your best interests

The Value of a Seller’s Agent

Now, what about sellers? A seller’s agent brings the same expertise to the table—just from the other side. Here’s how a seller’s agent can help you sell your home:

• Gives you peace of mind when it comes to selling your biggest asset
• Provides market expertise and helps you price your home right
• Handles the marketing of your home and sets up showings with potential buyers
• Helps you pick the best offer and negotiate the best deal

What’s the Difference Between a Real Estate Agent and a REALTOR^®?

You might be wondering, What’s the difference between a real estate agent and a REALTOR®? since you’ll come across both titles out in the market. Well, the easy answer is that they all help clients buy and sell houses.

The difference is, REALTORS^® are members of the National Association of REALTORS^® (NAR). REALTOR^® is the trademarked name the NAR gives its agents. Put simply: All REALTORS^® are real estate agents, but not all real estate agents are REALTORS^®. The good news? Either is fine! Just make sure you find a real estate agent or REALTOR^® you can trust to serve you with excellence (no amateurs or newbies).

Can You Save Money by Selling Your Home Without an Agent?

Maybe you’re wondering about how much cash you could save if you sell your house yourself. Hey, that’s a totally valid question! I love saving money too. But the reality is, you may save on commission only to lose much more through a lower sales price or costly mistakes.

Just imagine walking into your dentist’s office and trying to clean your teeth yourself with all those metal tools. No thanks! I’ll leave my pearly whites to a pro who spent years in school and has cleaned thousands of teeth. The same logic goes for buying or selling a house.

If you’re thinking about not using an agent and going the for sale by owner (FSBO) route, I want you to hold your horses and check out these stats first. The latest data shows the median FSBO home sold for $360,000, while the median  agent-assisted home sold for $425,000.³ That’s a $65,000 difference!

Sure, about $25,500 of that (based on 6% commission on $425,000) might go toward agent commissions—depending on your agent’s rate and whether you’re also covering the buyer’s agent fee. But that could still leave you with almost $40,000 more than you’d make selling the house on your own. Cha-ching! Guys, that’s a big deal.

Here’s what the math actually looks like:⁴

	For Sale by Owner	Agent-Assisted
Median sales price	$360,000	$425,000
Estimated commission (6%)	$0	$25,500
Estimated proceeds after commission	$360,000	$399,500
Advantage over FSBO	—	+$39,500

What Does a Real Estate Commission Cover?

Like I said earlier, a real estate commission is negotiated between the agent and their client (often in the range of 3% per agent) and covers all the work that goes into helping a buyer or seller close on a property. Trust me, a great agent does a lot to help you buy or sell a house.

For example, a seller’s agent does much more than list your home and sit at the negotiation table. They also show you how to stage and style your home for buyers. And since they know what similar homes in your area are selling for, they help you price yours competitively. They also market your home so a ton of buyers will see it using a multiple listing service (MLS), social media and ads. I know—it’s like a personal marketing campaign for your house! This helps you sell your home fast and for top dollar.

Meanwhile, a buyer’s agent studies and regularly reviews home listings to help you find a home that checks off all the boxes on your list (or at least most of the boxes). They’ll show you the best options—and when you find a house you like, they’ll help you write up an offer.

Once you have a home under contract, a buyer’s agent will arrange a home inspection and guide you through repair requests or contract changes so you don’t get a bad deal or miss any important details in the small print.

Beyond those differences, both types of agents give you the confidence that a real estate professional is on your side, and they offer plenty of similar services. For example, both agents:

• Meet with you in person to understand your needs and answer any questions you have
• Educate you on current market conditions
• Give you access to an MLS—which offers more options to buyers and visibility to sellers
• Refer other needed pros (mortgage lenders, photographers, inspectors, attorneys)
• Schedule home showings
• Negotiate the best price for you
• Represent you throughout the sale and act in your best interest
• Help you through the mountain of paperwork

A good agent tackles these tasks day in and day out. Their experience helps you avoid rookie mistakes. Sure, you can try to handle all these things by yourself. But when you’re sitting in the hot seat of a real estate transaction, you’ll realize pretty fast that agents are worth their weight in gold.

How Much Do Real Estate Agents Make?

Top agents can earn six figures, easy. But bad agents who don’t move properties will struggle to make ends meet.

All the factors that go into closing a real estate deal can be vastly different, and that impacts how much an agent charges for their services. So it’s hard to say how much an agent makes on average. But as I’ve mentioned before, the most common way for an agent to get paid is through a commission (for example, 3% of a home’s selling price). And if you have good reason to do so, you might even be able to negotiate the cost of your real estate agent.

Keep in mind, they don’t just take their whole commission check straight to the bank. They give part of their commission to their brokerage—not to mention the money they spend on photographs, gas, marketing, licensing and office fees.

 

How Do Real Estate Agents Get Paid?

A real estate agent’s commission usually comes at the end of the home deal as part of the closing costs. If the seller offered to cover some or all of the buyer’s agent fees, both commissions would likely come out of the sale proceeds. If not, the buyer would need to be prepared to pay for their own agent’s fees separately—an amount that’s clearly outlined in the buyer’s agent agreement, which buyers sign before touring homes.

Find an Agent Who’s Worth Every Penny

Trust me, a good agent is worth the cost.

But make sure you know how to find an agent with solid experience. You don’t need someone who does this as a side gig. You need a full-time pro with a long history of success who will put your needs first and not try to steer you toward a certain property for whatever selfish reason.

Don’t settle when choosing an agent. Check out RamseyTrusted^® agents in your area. Our team vets them and only recommends top-performing agents who meet our high standard of excellence—that’s why they’re RamseyTrusted.