Short answer: on a $300,000 house, a total real estate commission of 5 to 6 percent comes to $15,000 to $18,000. That total is usually split between the agent who lists your house and the agent who brings the buyer, and then each agent shares it with their brokerage. Commission rates are negotiable in California, so your number may be lower or higher. The more useful question is what you keep after every cost of a traditional sale, so this guide walks through the math.
The commission math at a few rates
Start with the sale price and multiply. Here is what total commission looks like on a $300,000 sale:
- At 4 percent: $12,000.
- At 5 percent: $15,000.
- At 5.5 percent: $16,500.
- At 6 percent: $18,000.
These are examples, not quotes. Real estate commissions are not set by law. They are agreed between you and your agent in the listing agreement, and rules about how buyer-agent compensation is offered have been changing in recent years. Ask any agent you interview to put the rate, and who gets what, in writing before you sign.
Who actually gets the money
People often assume the listing agent pockets the full commission. That is not how it works. The total is divided, often in roughly equal halves, between the listing side and the buyer side. Each side then splits its share with the brokerage the agent works under. After that, the agent pays their own expenses, such as marketing, licensing, and insurance.
None of this means the commission is unfair. A good agent does real work: pricing, marketing, handling offers, and managing the paperwork. The point is only that, as the seller, the total comes out of your proceeds.
Commission is not your only cost
When sellers compare a listing to a cash offer, they often subtract only the commission. A traditional sale in California has more moving parts. Depending on your house and your deal, you may pay for:
- Repairs or credits. The buyer's inspection can lead to requests for repairs or money off the price.
- Escrow and title fees. Normal closing costs that are split according to local custom and your contract.
- County and city transfer taxes. These are charged when property changes hands.
- Prep and cleaning. Paint, staging, landscaping, and a deep clean before photos.
- Carrying costs. Mortgage payments, property taxes, insurance, and utilities every month the house is on the market.
- Disclosure costs. California sellers deliver a package of disclosure forms, and reports for things like natural hazards can have a fee.
Add those up on a house that needs work and the gap between a listing and a cash offer can look different than it does on paper.
A worked example you can copy
Take a house that could list at $300,000 after repairs. Say it needs a new roof and an air conditioner before it will pass a buyer's inspection. Here is a simple way to compare, using placeholder numbers you should replace with real quotes from contractors and your agent:
- Start with the expected sale price after repairs: $300,000.
- Subtract the commission: at 5.5 percent, that is $16,500.
- Subtract the repair cost: get two contractor quotes and use the real number.
- Subtract closing costs and transfer tax: ask a title company for an estimate.
- Subtract carrying costs: monthly payments, taxes, insurance, and utilities times the number of months you expect to wait.
- What is left is your net from a listing. Compare that to a written cash offer, which has no commission, no repairs, and no showings.
If the cash offer is lower than the sale price but close to your net, a direct sale may be the better choice. If a listing clearly nets more and you have the time, list the house. We would rather you pick the right option than the fast one.
When a listing makes sense
A traditional sale usually wins when your house is in good condition, you are not in a hurry, and you can afford to prepare it. A good agent can help you reach a wider pool of buyers and may bring a higher price. If that describes you, it is worth interviewing two or three agents and asking about their commission, their marketing plan, and their track record on houses like yours.
When a cash offer makes sense
A direct cash sale fits better when the house needs significant work, the situation is stressful or urgent, or the house is tied up in an estate, a tenant situation, or code issues. You give up some price. In return you skip commissions, repairs, showings, and the risk of a buyer's loan falling through. You also choose the closing date.
To see how we set an offer, read how it works, or check the comparison table on our homepage.
Questions to ask any agent or buyer
- What is the total commission, and how is it split?
- What costs will I pay besides commission?
- What repairs do you expect me to make before listing?
- How long do similar houses take to sell, and what do they sell for?
- Can I cancel the listing agreement if it is not working?
- Is the cash offer in writing, and who closes the sale?
Any good professional will answer these without fuss. If someone avoids them, that tells you something.
Frequently asked questions
How much does a realtor make off a $300,000 house?
At a total commission of 5 to 6 percent, it is $15,000 to $18,000. That is split between the listing and buyer sides and then shared with their brokerages. Rates are negotiable.
Is real estate commission set by law in California?
No. Commission is agreed between you and your agent in the listing agreement. Get the rate and the split in writing.
Do I pay commission if I sell to a cash buyer?
Not to us. We are not agents and we charge no fees. You will still have normal closing costs, which the purchase agreement spells out.
Is a lower cash offer always a worse deal?
Not necessarily. Compare what you net after commission, repairs, closing costs, and carrying costs, not just the headline price.