2.5% or 3% Selling Commission?

When a REALTOR® considers which properties to show to a prospective buyer, they are primarily concerned about earning a selling commission from the transaction.

If they’re being honest, whether that selling commission is 2.5% or 3% makes very little difference to the selling agent. Besides, it would be unethical for an agent not to inform his or her buyer about a suitable property based on the amount of commission that the agent expected to earn. Also, REALTORS® are prohibited from using an offer from a buyer to attempt to renegotiate the selling commission.*


Earning a selling commission of 2.5% compared to 3% equates to only 16.7% less compensation for the selling agent. In cash terms, based on a sales price of $400,000, that’s a $10,000 versus a $12,000 payday. We think that $10,000 is enough!

Our policy is to cooperate with and to compensate selling real estate agents, thereby providing them with every incentive to show and help sell your home. Many properties advertised on the MLS offer 2.5% compensation to cooperating/selling agents. However, Realty Direct allows sellers to increase the compensation offered to selling agents at any time with a modified listing agreement.

Note that only the selling commission, not the total commission payable by the seller, is disclosed to other agents on the MLS.

Full service for less since 1997

*Standard of Practice 16-16

“REALTORS® . . . shall not use the terms of an offer to purchase/lease to attempt to modify the listing broker’s offer of compensation . . . nor make the submission of an executed offer to purchase/lease contingent on the listing broker’s agreement to modify the offer of compensation.”

Code of Ethics and Standards of Practice of the National Association of REALTORS®, Effective January 1, 2020.