Real estate commissions and Realtor fees in North Carolina

Historically, if you sold a home with the assistance of a real estate agent, you would be responsible for paying the commission of not only your agent but also your buyer’s agent. The cost of both agent fees totaled about 5 to 6 percent of the home’s selling price — a hefty chunk of change.

That approach to how commissions are paid, however, has recently changed. Sellers may no longer be responsible for paying the buyer’s agent; that is now decided beforehand as part of the deal negotiations. But regardless of who does the paying, both agents involved in the transaction will still need to be paid. Here’s a closer look at how real estate commissions break down in North Carolina.

How much are real estate commissions in North Carolina?

Total real estate commission costs in North Carolina averaged 5.47 percent in September 2024, according to data from Clever Real Estate. That puts the Tar Heel State a bit above the national average of 5.32 percent.

The median sale price of a home in North Carolina as of August 2024 was $381,200 according to Redfin. That puts a 5.47 percent commission at around $20,850. It’s not split 50-50 between both agents, though. Per Clever, the listing agent’s commission (that’s the agent representing the seller) averages 2.9 percent, while the buyer’s agent’s averages just 2.57 percent.

 It’s important to keep in mind, though, that housing prices vary significantly throughout the North Carolina housing market. Therefore, the cost of commissions also varies depending on your specific area. Here’s what the commission fees would be in a few major cities based on the median sale price of homes in each location and the percentages above:

What’s included in a real estate agent’s commission?

A real estate agent provides a long list of services in exchange for their commission fee, whether they’re representing a buyer or a seller.

Listing agents help home sellers identify a competitive list price — a step that typically involves significant research, including analyzing the sale prices of recent comparable homes. They also market the property, leveraging their professional network and fellow agents, as well as hosting showings and open houses. Finally, agents negotiate the deal when an offer comes in, helping you obtain the best price possible, and handle all the closing paperwork too.

On the buyer side of the equation, real estate agents can help identify homes for sale that are not only within your budget but also meet your lifestyle needs. They likely know about listings and areas that buyers might not find on their own, and they may also connect buyers with other real estate pros, like inspectors and mortgage brokers. And when it comes time to make an offer on a property, they help negotiate the final deal and see you through the closing process.

Who pays agent commissions in North Carolina?

Agent commissions have always been a part of the various costs to sell a house. But across the country, including in North Carolina, the way these fees are paid recently changed as part of a federal lawsuit settlement.

Traditionally, home sellers covered the fees of both agents involved in the transaction, their own and their buyer’s. Now, though, buyers may — or may not — be responsible for paying their own agent directly. Who pays what will be decided as part of the negotiations, and will differ from one deal to the next. Be sure your contract clearly spells out which party is paying for which commission fees, and exactly how much.

Are North Carolina real estate agents worth it?

Whether you’re buying or selling a house in North Carolina, a real estate deal is a significant financial transaction. Many consumers bristle at the need to pay thousands extra in commission, and that’s understandable. But, while you’re not required to hire an agent to help you through the homebuying or selling process, having a professional by your side certainly provides some benefits. 

Agents are licensed professionals with extensive knowledge of their local market dynamics. This knowledge can go a long way toward helping you buy or sell at the right price. And if something goes wrong along the way, they will handle it on your behalf — their job is to put their expertise to work for you and advocate for your interests. Overall, the benefits of a Realtor’s guidance will usually make their commissions worth it, especially for inexperienced buyers or sellers. 

Saving on fees

If you’re looking for ways to cut back on Realtor fees and keep more money in your pocket, here are some tactics to consider:

• Negotiate the rate: Many aspects of a real estate deal are negotiable, and that often includes commission fees. When shopping around for an agent, ask if they are willing to shave a bit off their typical percentage — even a small amount can mean big savings, especially on a higher-priced home.
• Opt for a discount agent: Some companies, such as Clever and Redfin, charge less for Realtor commissions, often as low as 1 or 1.5 percent of a home’s sale price. There are also agents that work on a flat-fee basis, earning a set amount rather than a percentage of the sale price.   
• For sale by owner: The FSBO process is not for the faint of heart, as it involves a great deal of work on the seller’s part. But you will eliminate the expense of a listing agent’s commission. (Remember, however, that you still may have to pay a buyer’s agent commission.)
• Sell to a cash homebuyer: Another way sellers can eliminate an agent’s fee is to sell to one of the many companies in North Carolina that buy houses for cash. These firms close the deal quickly, often within just a couple weeks, and there are no agents involved. However, while you won’t pay that commission fee, you also likely won’t get full market value for your home, so you’ll pocket less profit. 

Find a North Carolina real estate agent

If you’re ready to buy or sell a home in North Carolina, the next step is to do your homework. You’ll want to find a real estate agent who has expertise in your specific local market. Ask friends and family for referrals to agents they may have used and liked, look online, and drive or walk around your area noting names on for-sale signs you see. Be sure to interview at least two or three candidates to find someone who you feel comfortable with and can work with effectively.