How to Avoid or Reduce Realtor Fees in 2025: Legal Ways Sellers and Buyers Can Save

TL;DR

• You can’t magically dodge contracts, but you can legally reduce or shift costs: negotiate commission, use limited-service or flat-fee options, sell by owner, or target buyer rebates (where legal).
• Post-2024 changes in the US: buyers now sign written agreements and seller-paid buyer agent commissions aren’t assumed. Sellers don’t have to offer it on MLS, but may risk a smaller buyer pool if they don’t.
• Use a decision rule: only skip full-service when you have strong demand, a simple property, or a known buyer. If the home needs heavy marketing or negotiation support, a good agent often pays for themselves.
• Typical fees in 2025: US total 4.5-6% (dropping in some markets), UK 0.9-2% + VAT, NZ 2-4% + admin. All are negotiable. Get quotes in writing.
• Avoid gotchas: don’t breach listing/buyer agreements, don’t agree to dual agency without eyes open, and don’t underprice to “save fees” only to leave money on the table.

How to actually get around paying full fees (without breaking anything)

You clicked for one thing: pay less in commission without blowing up your sale or breaking your contract. Short answer: yes, you can reduce agent costs, and sometimes avoid them entirely, but it needs a plan. The exact play depends on your role (seller or buyer), your market (hot vs slow), and your region’s rules. I live in Auckland, and I’ve seen all of these strategies work-when used in the right context.

Before we get into tactics, a quick reality check. Fees are usually tied to service and risk. If you cut fees, expect to do more yourself or accept trade-offs like a smaller buyer audience or more time managing the deal. The smartest way to “get around” fees is to either:

• Negotiate a lower rate for the same service, or
• Pay only for the slices of service you need, or
• Do it yourself with targeted expert help (lawyer/conveyancer, photographer, staging, etc.).

What’s negotiable? Almost everything-commission rate, the split, included marketing, the length of your agreement, and even success fees versus upfront fees. In most places, there’s no law that sets a fixed commission, and regulators make that clear (the Real Estate Authority in NZ, for example, says commissions are set by agents and are negotiable; the UK’s Property Ombudsman expects transparency; and US regulators aggressively police price-fixing).

Now, how you actually save:

• For sellers

1. Negotiate commission with data, not vibes. Bring 2-3 written quotes. Ask for a sliding scale (e.g., 2.0% up to a threshold price, 1.5% on the portion above). Cap the fee, or set a success kicker for beating the target price. Aim for a shorter exclusivity (e.g., 60-90 days) so you keep leverage.
2. Use limited-service or flat-fee listing models. In the US, flat-fee MLS services post your property to MLS for a few hundred dollars, and you handle showings and negotiations. In NZ/UK, several agencies offer “essentials-only” packages-professional photos, listing copy, scheduling-without full-service commission.
3. Go FSBO (For Sale By Owner) with professional cherry-picking. Hire pros where it matters: an appraiser/valuer, a real estate lawyer or conveyancer, a photographer, and a copywriter for the listing. Expect to save 2-4% versus full service. Risk: you must manage pricing, buyer qualifying, and negotiation.
4. Target buyers without agents. In the US 2025 environment, buyers are signing representation agreements but aren’t guaranteed seller-paid buyer agent fees. Market your listing on portals and social channels that reach unrepresented buyers. Offer a clean price or a closing cost credit to the buyer instead of an agent commission.
5. Use auctions or tenders if your market is hot. Auctions (common in NZ) concentrate demand and may reduce the need for heavy agent-driven marketing. You’ll still pay a fee, but competitive tension can compress the effective cost per extra dollar achieved.
6. Expired or matched-buyer strategy. If you already know your buyer-say, a neighbour or colleague-use a lawyer-only route or negotiate a reduced “introduction-only” fee with an agent. Make sure your listing agreement doesn’t force a fee for buyers you found yourself unless that’s negotiated.

• For buyers

1. Ask for a commission rebate (where legal). In many US states, buyer agent rebates to the buyer at closing are permitted. This can return 0.5-1.5% (sometimes more) back to you. Not all states or countries allow rebates, so check your rules.
2. Use “fee-for-service” buyer representation. Pay an hourly or flat fee for home tours, pricing advice, and offer strategy-no percentage cut. More agents are offering this in 2025.
3. Negotiate your buyer representation agreement. Post-2024 in the US, you sign one before showings. Set the fee and cap it. If a seller offers any buyer-agent compensation, that offsets your obligation. If not, you know the max you’ll pay.
4. Buy directly from the listing agent (with caution). Some listing agents reduce the total fee if they represent both sides. This can save money, but dual agency reduces advocacy for you. If you go this route, protect yourself with a lawyer and clear disclosures.
5. New-builds and developer sales. Developers often have in-house sales teams. No buyer agent needed, and they may offer incentives. Compare the “incentive” against what you’d gain with independent representation.

One more ethical guardrail: if you’ve signed a listing or buyer agreement, you can’t “get around fees” by cutting your agent out. End the contract properly or wait it out. If you’re unsure what you signed, ask a lawyer to review the termination clause, the “tail period” (when a fee is still owed if a buyer was introduced earlier), and any penalties.

Numbers, examples, and a simple decision rule

Skipping full-service sounds great until it backfires. Run the numbers first. Here’s how I stress-test it.

Rule of thumb: Every 1% in commission equals $1,000 per $100,000 of price. On a $800,000 home, 1% is $8,000. If a strong agent can credibly add 3% to your sale price by better pricing, staging, and negotiation, paying 2% to 2.5% might still net you more than DIY.

Break-even check:

1. Estimate the high-confidence sale price with a good agent (use 2-3 valuations and local comps). Example: $800,000.
2. Estimate your price if you DIY or use limited-service (be conservative). Example: $785,000.
3. Commission with agent at 2.5%: $20,000. Net: $780,000.
4. DIY costs (photos, legal, marketing): say $3,000. Net: $782,000.
5. DIY wins by $2,000 in this scenario. But if your DIY price slips by just another 0.5% ($4,000), the agent route would win. That’s your sensitivity check.

Time and risk premium: Add a value to your time (say, $60/hour) and estimate hours for showings, follow-ups, paperwork, and problem-solving. A typical FSBO can soak 60-100 hours. That’s $3,600-$6,000 in personal time. If you’re slammed, that’s real money.

Offer engineering (US 2025): The 2024 National Association of Realtors settlement changed norms. Sellers no longer need to post buyer agent compensation on the MLS, and buyers sign representation agreements that set buyer agent fees. Sellers can choose not to pay a buyer agent. If you’re a seller and you don’t offer it, expect some buyers to ask for a closing credit to fund their agent or go unrepresented. If your property is very desirable, you may still get strong offers without offering buyer agent comp.

When skipping full-service works best

• Hot micro-markets with low inventory and high demand.
• Cookie-cutter units with easy comps (e.g., a near-identical townhouse that just sold).
• You already have a buyer lead (friend, neighbour, colleague, tenant).
• You are comfortable negotiating and handling contract logistics.

When an experienced agent likely pays for themselves

• Unique or quirky properties that need storytelling and broad outreach.
• Homes with condition issues or where pricing is tricky.
• Cross-border buyers, complex title/easement matters, leaseholds (NZ/UK), or HOA/body corporate wrinkles.
• Slow markets where each extra buyer is hard-won.

Here’s a quick snapshot of typical 2025 fee ranges and what’s changed recently.

Negotiation scripts you can actually use

• “I’m interviewing three agents. If we agree on a 2.0% base with a sliding 1.5% above $900k, we have a deal today.”
• “I’ll cover professional photos and floorplans. With that off your plate, can you do 1.8% and a 60-day exclusive?”
• “If I bring the buyer, I want your fee to drop to an introduction-only rate. Please add that to the listing agreement.”
• (Buyer) “My budget is tight. I’d like a buyer rebate at closing equal to 0.75% if your minimum fee is met.”

Common pitfalls that wipe out savings

• Breaching a signed listing agreement; you may still owe the fee if your buyer was introduced during the agency period or tail period.
• Underpricing to “save” fees. You save 2%, but leave 4% on the table.
• Skipping staging and pro photos. You think you saved $1,200; your days-on-market doubles.
• Dual agency without safeguards. It can work, but only if you understand the limits on advocacy and use a lawyer to protect your interests.
• Offering zero buyer-agent comp in the US without a plan to reach unrepresented buyers or fund buyer closing credits if needed.

Checklist: what to DIY vs outsource

• DIY: decluttering, light staging, hosting open homes (if comfortable), basic social media posts, responding to inquiries quickly.
• Outsource: valuation or appraisal, professional photography, copywriting and floorplans, legal work (lawyer/conveyancer), and, if negotiating makes you sweat, hire a negotiator or agent for that stage only.

Cost calculator mini-guide

1. Commission target: aim for 1.5%-2.5% if using full-service in competitive areas; higher may be fine if the agent adds clear value.
2. DIY budget line items: photos $300-$800; floorplan $150-$300; legal $1,200-$2,500; targeted ads $200-$1,000; staging (lite) $500-$2,000.
3. Add a 10% buffer for surprises (repairs, compliance reports, extra marketing).

How to choose between models (simple decision rule)

• If you have a warm buyer, simple property, and strong pricing comps → try limited-service or FSBO with a lawyer, and spend on top-tier photos.
• If your home is unique or your market is slow → hire a proven negotiator and marketer. Negotiate their fee, not their value.
• If you’re a US seller in 2025 unsure about buyer agent comp → test the market at first with no posted buyer comp but be ready to offer a closing credit if needed.

FAQs, quick answers, and your next steps

Is it legal to avoid paying a buyer’s agent in the US now? Yes, sellers don’t have to offer buyer agent compensation on the MLS after the 2024 NAR settlement. But buyers often have signed agreements to pay their own agent. To keep deals moving, some sellers offer a buyer closing credit instead of commission. Test demand before committing.

Will agents “boycott” my listing if I don’t offer buyer-side comp? Most pros won’t sabotage clients, but you may get less attention from buyer agents if their clients would need to pay out of pocket. Compensate by boosting direct-to-buyer marketing, hosting accessible open homes, and pricing sharply. Consider offering a modest credit if showings lag.

Are buyer rebates legal? In many US states, yes, and they can be sizable. They’re restricted in some places, so check state rules. In NZ/UK, rebates aren’t common on the buyer side; savings usually sit with the seller via lower commission.

Can I just use a lawyer and skip an agent? Yes. In NZ and the UK, conveyancers or solicitors handle the legal spine. In the US, in attorney states, a real estate lawyer can cover contracts and closing. You’ll still need to handle pricing and marketing unless you hire those pieces separately.

What’s the risk with dual agency? The agent can’t fully advocate for both sides at once. You’ll lose negotiating leverage and personalized advice. If you accept it to save money, bring in a lawyer, insist on clear disclosures, and keep communications in writing.

I signed a listing agreement. Can I cancel to avoid fees? Maybe. Check the termination clause, the exclusivity period, any withdrawal fees, and the tail period. Ask for a mutual release if you’re truly unhappy. Get it in writing before re-listing.

Do auctions reduce fees? Not automatically. But in auction-heavy markets like Auckland, strong competition can increase the final price enough that the fee feels smaller relative to outcome. Negotiate both the commission and the marketing budget up front.

How do I screen a “low-fee” agent? Ask for a track record: days on market, list-to-sale price ratio, and 3 recent addresses. Confirm what’s included-photos, copy, floorplan, digital ads, and who handles buyer qualification and open homes. Low-fee and high-skill can coexist; you just need proof.

Can I pay a small upfront fee and a tiny success fee? Yes, some agents will swap a reduced commission for a marketing retainer. You share risk. Keep the success fee aligned with your price target so everyone rows the same way.

What if I’m buying new construction? Builders often sell in-house. You might save on fees, but compare incentives and the value of independent advice. Consider hiring a paid-only advocate (flat fee) to review contracts and negotiate extras like upgrades or closing credits.

Next steps: seller playbook (quick)

1. Get three proposals. Ask for a sliding or capped commission and a 60-90 day term.
2. Price test: compare agent-guided price versus DIY price. If the gap is smaller than the fee, DIY could win. If you’re unsure, run a short exclusive listing and pivot if needed.
3. Pick your model: full-service (negotiated), limited-service, or FSBO + lawyer.
4. Lock in standout photos and listing copy. Launch with energy in week one.
5. If in the US, decide your stance on buyer-agent comp. Start lean; add a buyer credit if traffic lags.

Next steps: buyer playbook (quick)

1. Interview agents who offer rebates or fee-for-service. Get the agreement in writing with a fee cap.
2. Set your max out-of-pocket for representation before touring homes.
3. When bidding, ask the seller for a closing credit if you need to fund your agent fee.
4. For new-builds, compare the builder’s incentives versus the value of independent advice.

Troubleshooting scenarios

• No showings after 10 days (US seller, no buyer comp offered). Push social ads, host a well-marketed open home, and add a specific buyer credit tied to closing costs. Reassess pricing if traffic remains weak.
• Multiple low offers on FSBO. Invite best-and-final by a deadline, clarify contingencies, and keep buyers warm. Consider bringing in a negotiator for a flat fee to sharpen terms.
• Agent won’t budge on commission. Trade scope for price. Offer to pay for marketing directly, shorten the exclusive period, or set a performance kicker instead of a higher base.
• Worried about legal risk. Hire a lawyer or conveyancer early. It’s cheaper than a deal collapse and protects you if issues pop up in title, LIM, HOA/body corp docs, or disclosures.

One last nudge: focus on net, not just fees. The cheapest path is the one that gets you the best net outcome with acceptable risk. Sometimes that’s FSBO. Sometimes it’s a sharp, negotiated full-service agent who earns their keep. Do the math, get it in writing, and keep your options open until the signed contract is rock solid.

If you only remember one phrase, make it this: reduce realtor fees by paying only for the parts you truly need-and negotiate everything else.

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