Can You Negotiate the Real Estate Commission When Selling in California?
CAN YOU NEGOTIATE THE REAL ESTATE COMMISSION IN CALIFORNIA?
Yes. Real estate commissions are always negotiable in California, and no law sets a standard rate. Since the 2024 changes following the NAR settlement, offers of buyer-agent compensation no longer appear in the MLS, and buyers sign their own written agreements with their agents. As a seller, you negotiate your listing agent's fee in the listing agreement and decide separately whether to offer anything toward a buyer's agent. The smartest comparison isn't the rate. It's your net proceeds.By
Reza Lashkari | October 30, 2026 | 4 Minute Read
This question came up repeatedly in the topics people are asking about. Here's a candid look from the agent's side of the table.
What Changed in 2024?
- No MLS compensation offers. Listings no longer show what the seller will pay a buyer's agent.
- Written buyer agreements. Buyers sign an agreement before touring, which spells out how their agent is paid.
- Seller concessions are still allowed. Sellers can offer to pay some or all of the buyer's agent fee or other buyer costs as part of a negotiation.
What Do Sellers Typically Pay?
It varies by agent, service level, and price. Your listing agreement states the listing fee, and your purchase contract states anything you agree to pay toward the buyer's costs. Here's a full breakdown of what it costs to sell a home in Orange County.
How Should You Compare Agents?
A lower rate isn't always a better deal. Consider:
- Pricing accuracy. Overpricing leads to price cuts. In Mission Viejo, homes sold at a median of 98.5% of original list price, and many sold only after a price cut.
- Preparation and marketing. Photos, staging, video, and launch strategy affect how many buyers see and offer on your home.
- Negotiation. Managing inspection requests, appraisal gaps, and credits can be worth thousands.
- Your net sheet. Ask every agent for an estimated net based on their price, fee, and plan.
Should You Offer Buyer-Agent Compensation?
It's your decision. Offering something can widen your buyer pool, especially for buyers who are cash-strapped after their down payment. Not offering it may mean buyers ask for it in their offer instead. Many sellers decide case by case once offers come in.
How Do You Negotiate the Listing Fee?
- Interview two or three agents.
- Ask what's included, such as staging, photos, video, and pre-listing inspections.
- Compare net sheets, not just rates.
- Discuss a fee structure that fits your situation, such as a different rate if the agent also helps you buy your next home.
If you're getting your home ready, read whether renovating before selling is worth it and whether a pre-listing inspection is worth it.
How Does Compensation Show Up in Your Net?
Here's a simplified illustration on a $1,300,000 sale, showing how different compensation choices change your net. These are examples, not recommendations or standard rates.
| Scenario | Listing fee | Toward buyer's agent | Total |
|---|---|---|---|
| A | 2.5% ($32,500) | 2.5% ($32,500) | $65,000 |
| B | 2.5% ($32,500) | 2.0% ($26,000) | $58,500 |
| C | 2.5% ($32,500) | $0, buyer pays own agent | $32,500 |
Scenario C saves the most on paper, but the buyer may ask for a credit or offer a lower price to cover their agent. The difference often shows up somewhere in the negotiation. That's why I compare scenarios by expected net proceeds, not just the fees.
What Questions Should You Ask About a Listing Agreement?
- What's the fee, and when is it earned?
- How long does the agreement last, and can I cancel?
- What happens if I sell to someone I found myself?
- What services are included, such as staging, photos, video, and inspections?
- How will buyer-agent compensation be handled in offers?
Get the answers in writing before you sign.
How Has the Market Responded Since 2024?
In practice, many Orange County sellers still choose to contribute toward buyer-agent compensation, often negotiated as part of the offer. Others list without offering anything and decide when offers arrive. Both approaches can work. The right choice depends on your price point, competition, and the buyers your home attracts.
What Matters More Than the Fee?
A well-priced, well-prepared, well-marketed home tends to sell faster and with fewer concessions. Overpricing, weak photos, or poor negotiation can cost sellers far more than a percentage point of commission. Choose an agent based on their plan and results, then negotiate fees that fit the service you're getting.
Frequently Asked Questions
Is there a standard real estate commission in California?
No. Commissions are negotiable and set by agreement between you and your agent.
Do sellers still pay the buyer's agent?
Not automatically. Sellers can choose to offer compensation or agree to it in negotiations, but it's no longer advertised in the MLS.
What is a buyer agreement?
A written agreement between a buyer and their agent, required before touring, that explains services and compensation.
Can I negotiate commission after signing a listing agreement?
Changes require both parties to agree in writing. It's best to settle terms before you sign.
Does a lower commission mean I'll net more?
Not necessarily. Pricing, marketing, and negotiation often have a bigger effect on your net than the fee.
Ready to See Your Net, Not Just a Rate?
I'll show you a clear net sheet and a plan for your home, so you can compare options with real numbers. If you're also buying, our Door to Door Program lets you make your next offer as a true cash buyer.
About Reza Lashkari
Reza Lashkari is the Team Leader of L&L Homes Team at Real Broker, with 13+ years of experience helping buyers and sellers across Orange County. A Mission Viejo resident and longtime local youth sports coach, Reza guides families through every step of buying, selling, and relocating — whether they're moving up, downsizing, or moving across the country. CA DRE #02195314.
CA DRE #02195314 | Broker DRE #02022092 | 949-826-8100 | reza@llhomesteam.com
This article is for general information only and is not legal, tax, insurance, or financial advice. Rates, limits, fees, tax rules, and program eligibility change frequently and vary by situation. Figures above are illustrations, not quotes. Consult your lender, insurance agent, tax professional, or attorney about your situation. Reza Lashkari, CA DRE #02195314, L&L Homes Team at Real Broker (Broker DRE #02022092). Equal Housing Opportunity.
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Realtor License ID: 02195314, 9527841, RES.0044054
+1(949) 826-8100 | reza@llhomesteam.com