Commission is one of the most misunderstood parts of a real estate transaction, and after the 2024 industry changes, even people who have sold before have new questions. Here is how it actually works in San Francisco today.
There is no set rate, and there never really was
Despite what you may have heard, commission has never been fixed by law. In California, total commissions have historically landed between 4% and 6% of the sale price, with the listing side commonly around 2.5%. The right number for your sale depends on your property, your price point, and the marketing and service behind it.
What changed in 2024
The biggest shift is that sellers are no longer automatically responsible for paying the buyer's agent. Buyer-agent compensation is now negotiated separately and agreed to in writing before a buyer tours homes. As a seller, you decide whether to offer it.
Why most SF sellers still offer buyer-agent compensation
In a market as competitive as ours, offering compensation to the buyer's side widens your pool of qualified buyers and keeps your home accessible to everyone, including strong buyers working with an agent. In practice, that often protects your final sale price by more than you would save by not offering it. It is a strategic decision, not an automatic one, and I walk every client through the math.
What you are actually paying for
A full-service commission covers far more than putting a home on the MLS. It includes pricing strategy, pre-sale preparation, professional photography and marketing, negotiation, transaction management, and the relationships that bring qualified buyers to the table. In a high-stakes San Francisco transaction, that expertise is often the difference between a good outcome and a great one.
For buyers
If you are buying, you will now sign an agreement with your agent up front that spells out how they are paid. In many cases the seller still covers it, but it is negotiated as part of the offer, one more reason to have a sharp agent in your corner.
The bottom line is that commission is negotiable, it is transparent, and it should reflect real value. Before you list, I will show you exactly what your options are and what each one means for your net.
Curious what this looks like for your home? Reach out and I will walk you through it.
