Americans report spending nearly $55,000 on home-selling expenses for a median-priced home, and 40% of that figure represents commissions paid to realtors. Other expenses include repairs, improvements, renovations, closing costs, concessions, moving costs, marketing, and signage, according to a report released on Monday by Clever Real Estate, a platform that connects buyers and sellers with real estate agents. 

The total cost surprised 64% of sellers—and had they known the true cost of selling their home, 89% of them would have made a different decision. The report is based on a survey of more than 1,000 Americans who sold a home between 2022 and 2024.

“Home values have increased at a cadence that has outpaced wages year over year for too long. Yet, despite this, the seller of a home is still expected to pay a 2% to 3% commission to both the listing agent and the selling agent,” Christopher M. Naghibi, executive vice president and chief operating officer of First Foundation Bank, tells Fortune. While take-home commissions are rising due to increasing home prices, realtors’ workloads haven’t necessarily increased: “This nuance is lost on many sellers until they sell their first property, but that has been the practice for decades.” Naghibi is also a real estate broker and owns his own brokerage. 

Indeed, some of the largest costs associated with selling a home include the listing-and-buyer agents’ commissions, which average between $10,000 and $11,000, according to the Clever Real Estate study. Other top costs include repairs, improvements, and renovations, which total $10,000 on average; closing costs, which set sellers back $8,000; and concessions to the buyer, which cost about $7,200. 

“The real estate commissions are the price you pay to have a professional manage your transaction—just like a lawyer if you’re being sued or a dentist if you have a toothache.” 

Melinda Gunther, a global adviser with Premier Sotheby’s International Realty, tells Fortune. “If they didn’t like the service they received, that’s one thing, but to expect someone to manage your sale for free professionally is not realistic.”

How the NAR settlement could change the cost of having a realtor

Back in March, the National Association of Realtors, one of the country’s largest industry associations, reached a groundbreaking $418 million settlement over an alleged conspiracy to inflate realtors’ commissions. While NAR still denies any wrongdoing in these cases, the organization said it would prevent broker compensation offers on MLS and require users to complete written representation contracts with buyers.

What this means for homeowners and prospective buyers is that a change in commission structure is possible. That could be particularly helpful for sellers. 

“By far and away the most expensive aspect of selling a home is paying for both the listing agent and selling agents’ commissions,” Naghibi says. “Both of those fees are paid by the seller.”

However, changes to commission structures could cost-burden buyers instead, Amanda Orson, founder of off-market property marketplace Galleon, tells Fortune. 

“The NAR [settlement], which may lead to changes in how commissions are structured, could potentially shift more of the cost burden to buyers,” Orson says. “This might alleviate some costs for sellers, but will require both buyers and sellers to be more informed and prepared for these financial dynamics.” 

Because of this, Orson encourages buyers to understand the commission structure before signing a buyer’s agent agreement. Orson’s company takes the agent out of the homebuying equation, allowing buyers and sellers to connect directly for the transaction. She equates Galleon with Expedia, which “made travel booking easier,” and Robinhood, which “simplified stock trading” by making it easier for “experienced buyers to navigate the home buying process autonomously, efficiently, and cost-effectively.”

It’s not surprising for real estate veterans that the market is turning this way. Over time, Naghibi has seen technology give consumers more access to the tools necessary to understand their local real estate market and list their own property. 

“These were tasks that were historically a significant part of a real estate agent’s job,” Naghibi says. “A good real estate agent is incredibly valuable, but as home values have risen, so have their respective commissions.”