If you’re sitting there wondering why every person you ask gives you a different answer about how much is a broker fee, you aren't alone. It’s confusing.
The reality? "Broker fee" is a catch-all term for like five different industries. Whether you’re trying to rent a walk-up in Brooklyn, sell a tech startup, or finally buy that house with the wraparound porch, the "standard" rate has likely changed since the last time you checked.
Honestly, 2026 has been a weird year for fees. Between the massive legal shakeups in real estate and the slow death of stock commissions, the old "rules of thumb" are basically dead.
Real Estate Fees: The 6% Myth is Officially Dead
For decades, everyone just accepted that selling a house cost 6%. You didn't like it, but you paid it. That’s over.
Thanks to the fallout from the National Association of Realtors (NAR) settlement, the way agents get paid has been flipped on its head. As of early 2026, the national average commission for a home sale is sitting around 5.57%. That might not sound like a huge drop, but on a $500,000 home, that’s thousands of dollars back in your pocket.
Here is the kicker: sellers are no longer required to offer a set "buyer's agent fee" on the MLS.
Who pays what now?
- The Seller: Typically pays their own listing agent about 2.5% to 3%.
- The Buyer: Might now have to pay their own agent directly, or negotiate for the seller to cover it as a "concession."
- Discount Models: Services like Clever or Redfin are now super common, often charging a flat 1.5% listing fee.
If you’re buying, don't be shocked if your agent asks you to sign a contract saying you’ll pay them 2.5% if the seller won't. It's the new normal.
NYC and Boston: The Rental Fee Revolution
If you’ve ever rented in New York City, you know the pain of the "15% annual rent" fee. You find the apartment yourself, you do the work, and then some guy in a suit shows up and demands $5,000 for handing you a key.
Well, the FARE Act finally kicked in.
In NYC, the rule is now simple: whoever hires the broker pays the broker. If a landlord wants a broker to market their building, the landlord pays the fee. Most tenants are now looking at $0 in broker fees unless they specifically hire someone to find them a place.
Boston is still the "Wild West" on this, though. In Beantown, you’re often still on the hook for one month’s rent as a fee. It’s brutal, but local activists are trying to copy the NYC model as we speak.
Business Brokers: The "Lehman" Scale
Selling a business is a whole different animal. You aren't paying 5%. You're likely paying way more because the work is way harder.
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Most business brokers use something called the Double Lehman Formula. It’s a tiered system that rewards the broker for bigger deals but protects them on smaller ones.
Typical 2026 Business Fee Breakdown:
- 10% on the first $1 million of the sale price.
- 8% on the second million.
- 6% on the third million.
- 4% on the fourth million.
- 2% on everything after that.
If your business is "Main Street" (meaning it’s worth less than $2 million), expect a flat 10% to 12% success fee. Some brokers also charge a "retainer" upfront—anywhere from $2,500 to $10,000—just to take you on as a client. It’s pricey, but considering how hard it is to find a qualified buyer for a dry cleaner or a SaaS company, most owners find it worth the hit.
Mortgage and Stock Brokers: The "Hidden" Costs
You’ve probably noticed that E*TRADE and Schwab don’t charge you $10 a trade anymore. Stock broker fees for regular investors have mostly hit **$0**. Instead, they make money on the "spread" or by nudging you toward their own managed funds.
Mortgage brokers are different. By law, they can’t charge you more than 3% of the loan amount in total fees. Most actually land around 1% to 2%. Sometimes you don't even "pay" it—the lender pays them a commission for bringing the business, which is then baked into your interest rate.
Avoid Getting Ripped Off
Everything is negotiable. I can't stress that enough.
If a real estate agent tells you their fee is "set by law," they are lying. If a business broker wants 15% plus a monthly marketing fee, walk away.
Next Steps for You:
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- Ask for a Fee Disclosure: In writing. Before you sign anything.
- Compare Two Options: Never go with the first broker you meet. See if a boutique firm will beat a big-box name.
- Check the "Net": Don't just look at the fee percentage; look at what you walk away with after all costs are settled.
The "standard" fee is a ghost. In 2026, the only real fee is the one you’re willing to sign for.