{"id":22097,"date":"2026-06-22T04:00:04","date_gmt":"2026-06-22T11:00:04","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=22097"},"modified":"2026-06-22T20:29:12","modified_gmt":"2026-06-23T03:29:12","slug":"who-pays-real-estate-agent-commission","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/who-pays-real-estate-agent-commission\/","title":{"rendered":"Who Pays Real Estate Agent Commissions?"},"content":{"rendered":"<p>For generations, the average real estate agent commission rate has been around 5% to 6%, with the seller typically paying both the listing agent and the buyer\u2019s agent. However, the landmark <a href=\"https:\/\/www.homelight.com\/blog\/nar-lawsuit-settlement\/\">court settlement<\/a> by the National Association of Realtors (NAR) took effect on August 17, 2024, and has changed <a href=\"https:\/\/www.homelight.com\/blog\/real-estate-commission-changes\/\">real estate commission rules<\/a>. As the new model decoupled seller and buyer agent compensation, recent buyers and sellers are now asking: \u201cWho pays real estate agent commission?\u201d<\/p>\n<p>With insights from a <a href=\"https:\/\/www.homelight.com\/blog\/how-to-choose-a-real-estate-agent-for-selling\/\">top real estate agent<\/a>, we\u2019ll explore different scenarios when the seller pays the commission, when it falls on the buyer, and what activities the commission covers.<\/p>\n<p>\n\n\n\n\n<div class=\"geo-cta widget-cta widget-cta--content     widget-cta--dark widget-cta--dark-blue-gradient\">\n    <div class=\"widget-element--content\">\n        <div class=\"widget-element--content-header\">\n            <img decoding=\"async\" alt=\"homelight logo\" class=\"widget-element--logo\" src=\"https:\/\/www.homelight.com\/blog\/wp-content\/themes\/ccprototypev5\/images\/logo-small-cta.png\" width=\"106\" height=\"25\" \/>\n        <\/div>\n        \n                <h3 class=\"cta-headline widget--bold\">Find a top real estate agent near you<\/h3>\n                        <p>We analyze millions of home sales to find real estate agents that sell homes faster and for more money. It takes just two minutes to match you with your personalized recommendations.<\/p>\n        \n                <div class=\"widget-element--buttons\">\n            <a data-type=\"In Content CTA\" href=\"https:\/\/www.homelight.com\/find-agent\/quiz\/seller?#\/qaas=0\/\" class=\"cta-click-track widget-element--button\">Find Agent<\/a>\n        <\/div>\n                    <\/div>\n<\/div>\n\n <div id=\"section--1\" data-toc-header=\"A look back at the traditional commission model\" data-toc-type=\"head\"><\/div><\/p>\n<h2>A look back at the traditional commission model<\/h2>\n<p>The average seller-funded commission rate mentioned above includes the fees for both the <a href=\"https:\/\/www.homelight.com\/blog\/what-is-listing-agent\/\">listing agent<\/a> and the <a href=\"https:\/\/www.homelight.com\/blog\/buyer-buyers-agent\/\">buyer\u2019s agent<\/a>, who split the total commission payment. This has been the traditional way of including agent commissions in the final sale price of the property.<\/p>\n<p>This model is still an option if the sellers agree to pay both agent commissions, and in some cases, can be used as a strategic <a href=\"https:\/\/www.homelight.com\/blog\/what-is-a-seller-credit\/\">concession<\/a> to attract buyers and speed up a home sale.<\/p>\n<p>Shawn Hartmann, a top <a href=\"https:\/\/www.homelight.com\/states\/mn\">Minnesota agent<\/a> with over 20 years of experience, explains the original commission structure. \u201cSellers typically pay a 6% commission. Roughly half of that payment will go to their own agent, and the rest will go to the buyer\u2019s agent. That\u2019s how it worked 99% of the time.\u201d<\/p>\n<p>To illustrate, let\u2019s say you want to sell your house for $350,000 and are offering to pay both the seller and buyer agent commissions because your home is in a slower housing market.<\/p>\n<p>With a 6% commission amounting to $21,000, a traditional 50\/50 split would break down like this:<\/p>\n<ul>\n<li aria-level=\"1\"><strong>Listing agent: <\/strong>$10,500 (3% commission) paid for by the seller<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><strong>Buyer\u2019s agent: <\/strong>$10,500 (3% commission) paid for by the seller<\/li>\n<\/ul>\n<p>This commission, which most sellers used to pay, would have been included in the <a href=\"https:\/\/www.homelight.com\/blog\/what-is-the-mls\/\">Multiple Listing Services<\/a> (MLS) listing for the property. That meant the buyer\u2019s agent knew upfront what commission to expect by bringing a buyer to the transaction.<\/p>\n<p>As part of the NAR lawsuit settlement terms, compensation offers are no longer allowed on MLS systems to avoid what is known as \u201csteering,\u201d where buyers\u2019 agents show their clients only properties that would make them more money. Commission and compensation offers may instead be shared from agent to agent through discussions, phone calls, emails, private social media groups, and other forms of <a href=\"https:\/\/www.homelight.com\/blog\/buyer-real-estate-commission-rules-and-regulations\/\">advertising outside of the MLS<\/a>.<\/p>\n<p>Despite these mandated changes, the commission rate remains negotiable, along with many other parts of the home sale.<\/p>\n<p>This emphasizes the importance of negotiation and opens up different scenarios that will determine who pays the <a href=\"https:\/\/www.homelight.com\/blog\/real-estate-agent-commission\/\">real estate agent commission<\/a> \u2014 and how much. Let\u2019s explore some of them below. <div id=\"section--2\" data-toc-header=\"1. Seller pays listing agent; buyer pays buyer\u2019s agent\" data-toc-type=\"head\"><\/div><\/p>\n<h2>1. Seller pays listing agent; buyer pays buyer\u2019s agent<\/h2>\n<p>If you have sold a property before and had the 6% agent commission deducted from your sales proceeds, which also covered the commission of the buyer\u2019s agent, you would see the difference right away. In this arrangement, you will only be paying for the commission of your listing agent, which would generally be around 3% of the total sale price.<\/p>\n<p>This part of the NAR settlement change could lower the asking price of some properties, which used to account for the 6% commission paid out to agents for helping the transaction close. The buyer will shoulder the commission that goes to their buyer\u2019s agent.<\/p>\n<p>Here\u2019s how that would look for our $350,000 example property for sale:<\/p>\n<ul>\n<li aria-level=\"1\"><strong>Listing agent:<\/strong> $10,500 (3% commission) paid for by the seller<\/li>\n<li aria-level=\"1\"><strong>Buyer\u2019s agent:<\/strong> $10,500 (3% commission) paid for by the buyer <div id=\"section--3\" data-toc-header=\"2. Seller covers listing and buyer agent fees\" data-toc-type=\"head\"><\/div><\/li>\n<\/ul>\n<h2>2. Seller covers listing and buyer agent fees<\/h2>\n<p>Negotiations are a standard part of the homebuying process, and it\u2019s not just the <a href=\"https:\/\/www.homelight.com\/blog\/how-to-avoid-closing-costs\/\">closing costs<\/a> that can be negotiated. As in the traditional commission model described earlier, a buyer can negotiate for the seller to cover the 3% buyer\u2019s agent commission.<\/p>\n<p>Sellers may also consider <a href=\"https:\/\/www.nar.realtor\/the-facts\/home-sellers-what-the-nar-settlement-means\">offering to pay the buyer\u2019s agent commission<\/a> to market their home or make it more attractive to buyers. This is the most common arrangement, even after the decoupling of agent fees. According to a nationwide HomeLight survey, <a href=\"https:\/\/www.homelight.com\/blog\/2025-top-agent-insights-ai-edition\/\">92% of top agents<\/a> report that sellers are still paying their buyer\u2019s agent commission. 73% of surveyed agents also say offering to pay for the buyer\u2019s agent fee is the top seller incentive that could push a sale forward. However, the compensation offer can no longer be included in the MLS posting.<\/p>\n<p>Here\u2019s how that would look for our example property for sale:<\/p>\n<ul>\n<li aria-level=\"1\"><strong>Listing agent: <\/strong>$10,500 (3% commission) paid for by the seller<\/li>\n<li aria-level=\"1\"><strong>Buyer\u2019s agent:<\/strong> $10,500 (3% commission) paid for by the seller <div id=\"section--4\" data-toc-header=\"3. Seller negotiates for buyer to pay both agent fees\" data-toc-type=\"head\"><\/div><\/li>\n<\/ul>\n<h2>3. Seller negotiates for buyer to pay both agent fees<\/h2>\n<p>While rare, it is also possible for a seller to negotiate for the buyer to cover some or all of the commission. While this might seem like an attractive option if you\u2019re looking to save a bit of cash, Hartmann advises against it, saying, \u201cIf sellers tell buyers that they\u2019re going to have to <a href=\"https:\/\/www.homelight.com\/blog\/real-estate-agent-commission\/\">pay [both] commissions<\/a>, they\u2019re going to scare those buyers away.\u201d<\/p>\n<p>Here\u2019s how that would look for our example property for sale:<\/p>\n<ul>\n<li><strong>Listing agent: <\/strong>$10,500 (3% commission) paid for by the buyer<\/li>\n<li><strong>Buyer\u2019s agent: <\/strong>$10,500 (3% commission) paid for by the buyer <div id=\"section--5\" data-toc-header=\"4. Seller sells FSBO to save on listing agent fee\" data-toc-type=\"head\"><\/div><\/li>\n<\/ul>\n<h2>4. Seller sells FSBO to save on listing agent fee<\/h2>\n<p>Some homeowners choose to forgo help from a real estate agent and sell their home <a href=\"https:\/\/www.homelight.com\/blog\/how-to-sell-a-house-by-owner\/\">For Sale By Owner<\/a> (FSBO). According to NAR, FSBO sales account for around <a href=\"https:\/\/www.nar.realtor\/news\/real-estate-news\/fsbos-reach-all-time-low-more-sellers-rely-on-agents\">5% of U.S. home sales<\/a> and typically garner 18% lower prices on average than agent-assisted sales.<\/p>\n<p>Here\u2019s how that would look for our $350,000 example property for sale:<\/p>\n<ul>\n<li><strong>Listing agent: $<\/strong>0 (seller takes on many of the tasks the listing agent would traditionally handle)<\/li>\n<li><strong>Buyer\u2019s agent: <\/strong>$10,500 (3% commission) paid for by the buyer<\/li>\n<\/ul>\n<p>It\u2019s also important to note, however, that sellers will likely spend a portion of their commission savings since they\u2019ll need to pay for marketing and other items that an agent <a href=\"https:\/\/www.homelight.com\/blog\/pros-and-cons-of-for-sale-by-owner-weigh-your-options\/\">normally includes with their commission<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Who pays real estate agent commissions and how much depends on how negotiations go. Let\u2019s look at different example scenarios.<\/p>\n","protected":false},"author":220,"featured_media":47420,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","cybocfi_hide_featured_image":"","footnotes":""},"categories":[321,238],"tags":[764],"class_list":["post-22097","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-attract-buyers","category-working-with-agents","tag-how-real-estate-agent-commissions-work"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.7 (Yoast SEO v27.7) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Who Pays Real Estate Agent Commissions?<\/title>\n<meta name=\"description\" content=\"Who pays real estate agent commissions and how much depends on how negotiations go. 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Let\u2019s look at different example scenarios.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.homelight.com\/blog\/who-pays-real-estate-agent-commission\/\" \/>\n<meta property=\"og:site_name\" content=\"HomeLight Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/gohomelight\/\" \/>\n<meta property=\"article:published_time\" content=\"2026-06-22T11:00:04+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-06-23T03:29:12+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2023\/06\/who-pays-real-estate-agent-commission.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"563\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Matthew Stalcup\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@gohomelight\" \/>\n<meta name=\"twitter:site\" content=\"@gohomelight\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Matthew Stalcup\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"13 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":[\"Article\",\"BlogPosting\"],\"@id\":\"https:\\\/\\\/www.homelight.com\\\/blog\\\/who-pays-real-estate-agent-commission\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.homelight.com\\\/blog\\\/who-pays-real-estate-agent-commission\\\/\"},\"author\":{\"name\":\"Matthew Stalcup\",\"@id\":\"https:\\\/\\\/www.homelight.com\\\/blog\\\/#\\\/schema\\\/person\\\/b763fc8dee9da7ba646c771b771e672b\"},\"headline\":\"Who Pays Real Estate Agent Commissions?\",\"datePublished\":\"2026-06-22T11:00:04+00:00\",\"dateModified\":\"2026-06-23T03:29:12+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.homelight.com\\\/blog\\\/who-pays-real-estate-agent-commission\\\/\"},\"wordCount\":1076,\"publisher\":{\"@id\":\"https:\\\/\\\/www.homelight.com\\\/blog\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.homelight.com\\\/blog\\\/who-pays-real-estate-agent-commission\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.homelight.com\\\/blog\\\/wp-content\\\/uploads\\\/2023\\\/06\\\/who-pays-real-estate-agent-commission.png\",\"keywords\":[\"How Real Estate Agent Commissions Work\"],\"articleSection\":[\"Attract Buyers\",\"Working with real estate agents\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.homelight.com\\\/blog\\\/who-pays-real-estate-agent-commission\\\/\",\"url\":\"https:\\\/\\\/www.homelight.com\\\/blog\\\/who-pays-real-estate-agent-commission\\\/\",\"name\":\"Who Pays Real Estate Agent Commissions?\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.homelight.com\\\/blog\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.homelight.com\\\/blog\\\/who-pays-real-estate-agent-commission\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.homelight.com\\\/blog\\\/who-pays-real-estate-agent-commission\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.homelight.com\\\/blog\\\/wp-content\\\/uploads\\\/2023\\\/06\\\/who-pays-real-estate-agent-commission.png\",\"datePublished\":\"2026-06-22T11:00:04+00:00\",\"dateModified\":\"2026-06-23T03:29:12+00:00\",\"description\":\"Who pays real estate agent commissions and how much depends on how negotiations go. 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