Who Pays Realtor Fees: Buyer or Seller?
The short answer
Traditionally, and still most commonly, the seller pays realtor fees out of the sale proceeds, covering both their own listing agent and, through a negotiated arrangement, the buyer's agent. That hasn't fundamentally changed since 2024. What changed is that the buyer-agent portion is no longer automatically bundled in through the MLS. It's negotiated separately, and in some deals, buyers now pay some or all of it directly.
Why sellers usually still pay
A seller who refuses to offer any buyer-agent compensation risks buyer's agents steering clients toward homes that do offer it, or buyers asking for a credit to cover their own agent's fee anyway. In practice, this means most sellers continue to factor buyer-agent compensation into their pricing and negotiation strategy, even though it's no longer a fixed line on the MLS listing.
When buyers pay their own agent
Since buyers now sign a written agreement with their agent before touring homes, spelling out that agent's compensation, there are more cases where the buyer pays some or all of it directly: if the seller won't offer compensation, if the buyer wants more negotiating leverage on price, or in lower-priced homes where the math is tight for the agent. Buyers can also negotiate this cost into their offer, asking the seller for a credit toward it.
What this means for your numbers
If you're a seller, budget for both sides of the commission until you've actually negotiated otherwise. The real estate commission calculator and net proceeds calculator both default to typical two-sided rates. If you're a buyer, ask your agent directly what they're proposing to charge and who they expect to pay it. It's no longer a given.
Frequently asked questions
- Does the buyer or seller pay the real estate agent?
- Usually the seller pays both agents out of the sale proceeds, but since August 2024 the buyer-agent portion is a separate negotiation, and buyers increasingly pay some or all of their own agent’s fee directly in certain deals.
- Can a buyer negotiate who pays their agent?
- Yes. Buyers can ask the seller for a credit toward their agent’s compensation as part of the offer, or negotiate directly with their own agent on what they’ll pay. It’s now spelled out in a written buyer-agent agreement before touring homes.
- Why did buyer-agent commission become a separate negotiation?
- The August 2024 NAR settlement rules removed buyer-agent compensation from the MLS to increase transparency and competition. Instead of one bundled rate, sellers, listing agents, buyers, and buyer’s agents now negotiate that piece directly.