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ccording to Clever Real Estate, the average real estate commission rate in the U.S. is 5.32%, split between the listing agent (2.74%) and the buyer's agent (2.58%). Closing costs for buyers typically range from 3% to 5% of the sale price, totaling $10,000 to $17,000 on average.

    To save money on closing costs, homebuyers should be aware that real estate commissions can also be negotiated. As Seamus Nally, CEO of TurboTenant, notes, "Though the NAR settlement has changed the structure so that buyers are now responsible for their agent's commission, that can definitely be negotiated." Homebuyers can use leverage to negotiate lower commissions by finding discrepancies in home inspections or other issues with the property.

    When selecting an agent, it's essential to choose one who is open to negotiations. Jim Sandford, a real estate investor and founder of Freedom Properties Direct, recommends asking about commission rates upfront during initial meetings. Agents who are open to negotiations often provide better service and may be more flexible in other areas.

    Interviewing multiple agents can also help homebuyers negotiate lower commissions. As Robert Washington, an experienced broker and founder of Savvy Buyers Realty, advises, "Once the buyers have interviewed multiple agents and received their commission offers, buyers can go back to their favorite agent and let them know they'd love to work together, but another agent is offering their services at a lower commission."

    Homebuyers who are purchasing high-value properties or plan to use the same agent for multiple deals may be able to negotiate better rates. Flat-fee agents, who charge a fixed fee regardless of the sale price, can also provide substantial savings.

    In addition, homebuyers who bundle services with their agent by selling one property and buying another may have more leverage to negotiate discounted rates. Assessing market conditions is also crucial in determining whether an agent is willing to adjust their commission rate.

    Ultimately, negotiating commission rates is essential, but it's equally important to remember the value a skilled real estate agent brings to the transaction. By applying these tips, homebuyers can save money on real estate commissions while ensuring a smooth process.