{"id":22097,"date":"2024-08-23T06:00:04","date_gmt":"2024-08-23T13:00:04","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=22097"},"modified":"2025-05-23T10:54:26","modified_gmt":"2025-05-23T17:54:26","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":"

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, a landmark court settlement<\/a> is forcing buyers and sellers to revisit the question: \u201cWho pays real estate agent commission?\u201d<\/p>\n

New real estate commission rules<\/a>, effective August 17, 2024, changed the way Realtor\u00ae fees are handled. The new model is part of a court settlement<\/a> by the National Association of Realtors (NAR) that decouples seller and buyer agent compensation.<\/p>\n

With insights from a finding a 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

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A look back at the traditional commission model<\/h2>\n

The average seller-funded commission rate mentioned above includes the fees for both the listing agent <\/a>and the 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

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 concession<\/a> to attract buyers and speed up a home sale.<\/p>\n

Shawn Hartmann<\/a>, a top Minnesota agent with nearly 20 years of experience, explains the original commission structure. \u201c[Historically], sellers would 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

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

With a 6% commission amounting to $21,000, a traditional 50\/50 split would break down like this:<\/p>\n