Who pays realtor fees depends on what buyer and seller agree to in writing, not on an industry standard anymore. After the 2024 NAR settlement, either party can cover the commission: the seller might pay it, the buyer might pay their own agent, or the two sides might split it through a concession. Read on for how this actually plays out, what the math looks like, and what to put in writing before you sign anything.
TL;DR:
- Buyers can now negotiate and specify exact dollar amounts or rates for agent commissions before touring homes, increasing their negotiating power.
- Seller-paid commissions remain common but are now typically offered through direct communication, not MLS postings, with agreements strictly documented in writing.
- Average total realtor commissions in the US are around 5.7% of the sale price, often split evenly but negotiable depending on the agreement.
- Buyers should clarify whether their fee is refundable, what services it covers, and ensure all terms are in writing before proceeding with any offer or agreement.
- Many scenarios, including buyer pays directly or seller offers concessions, now influence who ultimately covers realtor fees, creating more options and transparency.
Table of Contents
- What changed in 2024 and why it matters for who pays fees
- Common scenarios: who actually pays in practice
- How realtor commissions are commonly calculated
- Negotiating payment and key contract items to require
- A short checklist: what buyers and sellers should ask before signing
- Publisher perspective: what this change means for consumers
- Alternative option: how RealtiFy helps you find transparent agents
- Sources
- FAQ
What changed in 2024 and why it matters for who pays fees
For decades, sellers typically paid the full commission and split it with the buyer's agent through the MLS. That changed after the NAR settlement FAQ took effect, which requires clearer disclosure of compensation and mandates written buyer agreements that state an exact, objectively ascertainable amount or rate before an agent shows a buyer a home.
The settlement did not ban seller-paid buyer-agent compensation. It moved those conversations off the MLS. Offers of compensation now have to happen through direct communication and written agreements rather than posted listing data, as NAR's consumer guide on offers of compensation explains.
Practical consequences for buyers and sellers include:
- Buyers now sign a written agreement with their agent before touring homes, spelling out exactly what they will pay.
- Sellers decide, case by case, whether to offer buyer-agent compensation as a way to attract offers.
- Both sides need to read contract language carefully instead of assuming a standard split will apply.
Common scenarios: who actually pays in practice
The old default has not disappeared, it has just become one option among several.
- Seller pays the full commission. Many sellers still choose to cover both the listing agent and the buyer's agent, especially in competitive markets where this keeps the deal simple for buyers.
- Seller offers buyer-agent compensation. A seller can authorize their listing agent to offer a set amount to a buyer's agent, negotiated directly rather than advertised on the MLS, per NAR's guide on offers of compensation.
- Buyer pays their agent directly. This can be a flat fee or a percentage, paid out of pocket or rolled into financing where the lender allows it. It gives buyers more leverage to negotiate their agent's rate but adds an upfront cost some buyers do not expect.
- Seller concessions cover the gap. A seller can offer a closing cost credit that a buyer applies toward their own agent's fee, which functions differently from a direct compensation offer.
- Special cases shift the usual pattern. Cash buyers sometimes negotiate lower total fees since there is no financing contingency to manage. FSBO sellers may only pay a buyer's agent, not a listing agent. iBuyers and institutional buyers often set their own fee structures entirely.
How realtor commissions are commonly calculated
Commission is usually a percentage of the sale price, and it is negotiable, not fixed by law or industry rule.
The U.S. average commission rate was around 5.7% of the final sale price as of 2026, according to Bankrate, though local rates vary and the total is often split between the listing agent and the buyer's agent.
Here is how that math plays out at different price points, assuming a 5.7% total commission split evenly between both agents:
- A $200,000 home generates about $11,400 in total commission, roughly $5,700 per side.
- A $300,000 home generates about $17,100 in total commission, roughly $8,550 per side.
- A $450,000 home generates about $25,650 in total commission, roughly half going to each agent, though exact splits vary.
These are illustrative splits, not a rule: some agreements set different percentages for each side, and some brokerages use flat fees instead of percentages entirely. Discount brokers, retainer arrangements, and hourly consulting models exist too, and they can cost significantly less for sellers who want a lighter-service option.
Negotiating payment and key contract items to require
Every buyer agreement now has to state compensation as a specific number or rate the reader can actually calculate, not a vague reference to "customary" fees. That single requirement, outlined in NAR's own reporting on compensation and commissions, is what gives buyers real negotiating room for the first time.
Options worth raising before you sign:
- A flat fee instead of a percentage, which can make sense on higher-priced homes.
- A percentage tied to specific services, not a blanket rate for everything.
- A seller concession that offsets your agent's fee instead of paying it directly.
- A retainer with a portion credited back at closing.
Timing matters. Raise fee structure before you sign a buyer agreement, not after you have already toured homes with an agent. If a seller is offering a concession, confirm the exact dollar amount in writing before you write an offer that depends on it.
Pro Tip: Ask your agent to put the exact commission amount or rate in dollars, not just a percentage, so there is no ambiguity at closing.
Before signing anything, confirm the exact fee, what services it covers, whether any portion is refundable, how either party can terminate the agreement, and that both signatures are dated.
A short checklist: what buyers and sellers should ask before signing
Buyers should ask their agent directly: Do I owe you anything, how much, is it in writing, and is any part refundable if we do not close? Sellers should ask their listing agent whether they plan to offer buyer-agent compensation and how that choice will affect net proceeds.
- Watch for open-ended language like "compensation to be determined" instead of a fixed number.
- Watch for agreements that do not specify what happens if you switch agents mid-search.
- Get a signed buyer or seller agreement with the compensation clause spelled out before any offer is written.
- Keep a copy of every disclosure and concession agreement for your closing file.
Publisher perspective: what this change means for consumers
The real shift here is not the paperwork, it is leverage. For years, commission felt fixed because nobody asked questions. Now that the rate has to be written down in plain numbers, the agents worth hiring are the ones willing to explain what that number buys you: showings, negotiation, contract review, or just a lockbox code. Compare the service, not just the percentage.
— Jadin
Alternative option: how RealtiFy helps you find transparent agents
If you want to compare agents before you commit to a fee structure, RealtiFy gives you a way to see agent credentials and reach out directly, without a middleman filtering the conversation.
- Browse curated property listings alongside agent profiles that show credentials up front.
- Message agents directly through the platform to inquire about compensation before signing anything.
- Use RealtiFy's agent hub to compare how different agents structure their services.
Check how RealtiFy works if you want to see the full process before reaching out to an agent.
Sources
For primary documentation, see the NAR settlement FAQ, CNN's explainer on the settlement, and Bankrate's commission breakdown. Sellers weighing concessions can also review a practical Miami closing cost guide for how credits typically work.
This article is general information, not a substitute for advice from a qualified financial advisor. Consult a qualified financial professional about your own circumstances before acting on anything here.
FAQ
Will a realtor accept a 2% commission?
Some agents will negotiate a lower rate like 2%, especially for a limited scope of services or a higher-priced home, since compensation is fully negotiable under current NAR guidance. Whether an individual agent agrees depends on the market, the services included, and how the fee is documented in your written agreement.
How much commission would I pay on a $300,000 house?
Based on the national average of about 5.7%, total commission on a $300,000 home would run around $17,100, often split between the listing and buyer's agents. The exact amount depends on what you negotiate in your written agreement, not a fixed industry rate.
Can a seller refuse to pay a buyer's agent?
Yes, a seller can decline to offer buyer-agent compensation, which is why buyer agreements now require an exact fee stated in writing before showings begin, according to NAR's consumer guide. If the seller does not pay, the buyer typically becomes responsible for their agent's fee directly.
How much does a realtor make on a $200,000 home sale?
Using the 5.7% average, total commission on a $200,000 home would be about $11,400, typically split between the listing agent and buyer's agent. Actual agent take-home pay is often lower after their brokerage takes a share of that split.