Do Closing Costs Include Realtor Fees?
Published by Cash Flow Deals · Last updated 2026-08-04 · Published and reviewed for compliance by Camilo Palacio, a Florida Licensed Realtor
Realtor commission is technically a separate charge from closing costs, but both come out of the same check at the closing table, so most people count them as one number. Closing costs alone run 1% to 3% of the sale price. Add commission and the total climbs to 8% to 10%. Sellers working with Cash Flow Deals see the fee as one disclosed line item against a locked net price, no guessing.
| Factor | Traditional Route | Cash Flow Deals |
|---|---|---|
| What counts as your total cost | Closing costs alone run 1% to 3%, commission stacks on another 5% to 6%, total lands around 8% to 10% | Cash Flow Deals' fee shows as one disclosed line item on the closing statement |
| When you find out the real number | Estimated up front, finalized on the Closing Disclosure about 3 days before closing | Net price locked before repairs are even scoped |
| Who sets buyer agent pay | Negotiated directly since the August 2024 settlement, no longer posted on the MLS | The buyer's own lender funds the purchase, separate from the seller's net |
What Actually Counts as a Closing Cost
Closing costs are the fees both sides pay to finalize a sale: title insurance, escrow or attorney fees, recording fees, prorated property taxes, and any HOA payoff. On their own, before commission gets added, these run about 1% to 3% of the sale price nationally, close to a 1.8% average. That's the number most people picture when they hear "closing costs." It's not the whole picture.
Where Realtor Commission Actually Fits
Commission is technically a separate line item from closing costs. It's a service fee, not a government charge or a settlement fee. In practice almost nobody treats it that way, because it comes out of the same seller proceeds at the same closing table. Once commission gets added, total seller costs jump to roughly 8% to 10% of the sale price. The Sitzer/Burnett settlement, effective August 17, 2024, changed how that commission piece works: offers of buyer agent compensation can no longer be posted on the MLS, and buyer's agents now need a signed written agreement spelling out their pay before they show a house. Commission is negotiable and averages around 5.7% combined nationally as of 2026, split roughly 2.9% to the listing agent and 2.8% to the buyer's agent, though that range moves by market and deal.
Why the Number Isn't Final Until Days Before Closing
Whatever a seller sees early on, a rough estimate from an agent or a number pulled off a listing site, is not the final figure. Prorated taxes shift with the exact closing date. Negotiated repair credits and concessions change the payoff. The number only locks in on the Closing Disclosure, which typically lands about three days before the actual closing date. Anything before that is an estimate.
How Cash Flow Deals Handles the Fee Differently
Cash Flow Deals connects a seller's property with a real buyer using their own FHA or conventional mortgage, so the seller isn't paying a markup baked into the sale price. Cash Flow Deals gets paid as its own separate line item on the closing statement, not folded into a moving commission estimate. Sellers working with Cash Flow Deals get their net price locked before repairs are even scoped, so there's no gap between an early estimate and what actually shows up at the closing table.
Common questions
Is realtor commission technically part of closing costs?
Not technically. Commission is a service fee for the agents involved, closing costs are things like title insurance, transfer taxes, and escrow fees. Both get paid out of the same seller proceeds at the same closing, which is why most people lump them together in conversation.
What's a normal total for seller costs including commission?
Closing costs alone run about 1% to 3% of the sale price. Add a typical commission and the seller's total cost usually lands between 8% and 10% of the sale price.
Did the 2024 NAR settlement lower closing costs?
It changed how buyer agent commission gets set, not the closing costs themselves. Since the Sitzer/Burnett settlement took effect on August 17, 2024, buyer agent pay is negotiated directly and disclosed in writing instead of posted on the MLS. Average combined commission has ticked down slightly since, but it isn't fixed at any number.
Can I negotiate who pays which closing costs?
Yes. Sellers and buyers can negotiate who covers which fees as part of the offer, including seller concessions toward the buyer's costs. It's a normal part of contract negotiation, not a fixed rule.
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What this means for your options
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