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I’m Selling My $1 Million Home. Can I Really Pay Less Than 6% Commission?

If you’ve been keeping an eye on real estate lately, you’ve probably heard the chatter about commissions shifting in 2024. Headlines are buzzing that the “standard” 6% commission is outdated. But is it really? If you’re selling a $1 million home, can you expect to pay less than that?

From what I’ve seen talking to sellers, this topic causes a lot of confusion. Negotiating commissions feels tricky because it’s not always clear how fees work—and there’s plenty of misinformation floating around.

Where Did the 6% Commission Even Come From?

For years, 6% has been the “go-to” commission rate in many U.S. markets, split between the listing agent and the buyer’s agent (usually 3% each). But calling it a “standard” is a bit misleading. Commissions have always been flexible. I’ve seen listings with 5%, 4.5%, and even flat fees.

So why 6%? It’s more tradition than rule. And in 2024, that tradition is definitely being challenged.

What’s Driving These Commission Changes?

This year, the National Association of Realtors (NAR) settled a big lawsuit that changes how buyer’s agent commissions are handled. Sellers no longer have to offer buyer’s agent fees upfront via the MLS. The idea is to open the door for more negotiation and potentially lower commissions overall.

But here’s the kicker: reality isn’t quite as straightforward as the headlines suggest.

Will You Pay Less Than 6% on Your $1 Million Home?

If you’re selling a $1 million property, you definitely have some bargaining power. I’ve seen agents willing to negotiate down to 4% or even 3.5% on homes like that, especially in hot, competitive markets.

That said, not every agent is ready to budge. Some still hold firm on 6%, pointing to their marketing expenses, experience, and the full-service package they provide. And honestly, that can be worth it. A great agent can take a lot of stress off your plate, especially if your home needs staging, special marketing, or has quirks that require extra attention.

Where Do the Real Savings Come From?

The biggest change lately is around the buyer’s agent’s commission. Since sellers aren’t required to offer it through the MLS anymore, you can offer less—or none at all—and let buyers work out fees with their agents separately.

But don’t expect agents to work for free. Buyers usually want their agents paid, and that cost often shifts back to you at closing. On a $1 million sale, even a 1% difference means $10,000 saved or spent—so it adds up fast.

What’s Open to Negotiation?

Pretty much everything. Don’t shy away from asking your listing agent about their commission and whether it’s flexible.

• Listing agent fee: Can be as low as 1% in some places, but 2–3% is more common for full service.
• Buyer’s agent fee: No longer required, but still standard in many areas. You get to decide what to offer—just keep in mind offering nothing might limit your buyer pool.

Some top agents will drop their fee for a high-value home, but if your property’s tough to sell or you want pricey marketing, they might stick to higher commissions.

What About Discount or Flat-Fee Agents?

Discount brokerages have been around for years. Some sellers pay a flat fee—think $5,000 or so—or a small percentage. These options work well if your home is in a hot market and doesn’t need much marketing.

But there are trade-offs: less hand-holding, fewer services, and sometimes less exposure. Discount agents can get the job done, but you might miss out on the negotiation skills and attention that come with full-service agents. Sometimes, you really do get what you pay for.

Can You Just Sell Your Home Yourself and Skip Commissions?

Going FSBO (“For Sale By Owner”) sounds tempting when you’re talking about a million-dollar home. Saving tens of thousands would be amazing! But most FSBO sellers find it hard to attract buyers, and often end up paying a buyer’s agent anyway.

In upscale markets, buyers expect professional marketing and representation. FSBO tends to work best for sellers who know the ropes or already have a buyer lined up. Otherwise, it can be overwhelming.

When Does Lower Commission Not Work Out?

Here’s the reality check. Sometimes, pushing for a super-low commission just backfires:

• Slow or unique markets: If your million-dollar home is in a rural area or is highly specialized, agents might be less willing to cut their fee. Selling might take longer and cost more in marketing.
• Homes needing heavy marketing: Drone videos, virtual staging, pricey ads—these things aren’t cheap, and agents may want to cover that with higher commissions.

In these cases, you might get less attention or weaker offers if you push too hard on price.

Will Commissions Keep Dropping?

Honestly, I doubt it. Some urban markets might see rates dip thanks to competition, but most agents aren’t slashing fees unless they have to. The best agents know their worth—and so do their clients. You might see more buyer’s agents moving to flat fees or hourly rates, but it’s still rare.

What Should You Do?

If you’re selling a $1 million home, don’t just settle on the first agent you talk to. Interview at least three. Ask what you get at different commission levels—some agents offer a menu of services, which is super helpful.

Don’t be shy about negotiating, but remember: the lowest commission isn’t always the best deal. A strong agent can often get you a higher sale price, faster sale, or way less headache—which adds up to more money in your pocket overall.

The Bottom Line

The days of a mandatory 6% commission are fading, but don’t expect professional agents to work for peanuts. If you want expertise, marketing muscle, and negotiation savvy, you’ll pay for it. But the good news? In 2024, you’ve got options. Just make sure you know what you’re getting—and what you might be giving up.

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