{"id":52993,"date":"2025-01-22T12:14:14","date_gmt":"2025-01-22T20:14:14","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=52993"},"modified":"2025-02-05T16:11:04","modified_gmt":"2025-02-06T00:11:04","slug":"do-sellers-pay-buyers-agent-commission","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/do-sellers-pay-buyers-agent-commission\/","title":{"rendered":"Do Sellers Pay the Buyer\u2019s Agent Commission?"},"content":{"rendered":"<p>You may have seen headlines announcing that a landmark court settlement has <a href=\"https:\/\/realestate.usnews.com\/real-estate\/articles\/what-the-2-billion-realtor-lawsuit-means-for-homebuyers-and-sellers\">changed the way Realtor fees are paid<\/a>. If you\u2019re planning a home sale, your first question might be, \u201cDo sellers pay the buyer&#8217;s agent commission?\u201d<\/p>\n<p>For decades, <a href=\"https:\/\/www.housingwire.com\/articles\/the-100-years-war-over-real-estate-commissions\/\">sellers have traditionally been responsible for paying both<\/a> their listing agent\u2019s commission and the buyer\u2019s agent commission. Now, these fees have been decoupled \u2014 buyers are expected to pay their own agent\u2019s commission.<\/p>\n<p>In this easy-scan post, we\u2019ll explain what these changes mean for sellers, the pros and cons of covering a buyer\u2019s agent commission, and strategies for navigating this evolving market.<\/p>\n\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\">The Top 5% of Agents Sell Homes for Up to 10% More<\/h3>\n                        <p>HomeLight analyzes over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs. Connect with your top agent matches today at no cost.<\/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\">Get Started<\/a>\n        <\/div>\n                    <\/div>\n<\/div>\n\n\n<div id=\"section--1\" data-toc-header=\"Do sellers pay the buyer\u2019s agent commission?\" data-toc-type=\"head\"><\/div>\n<h2>Do sellers pay the buyer\u2019s agent commission?<\/h2>\n<p>The short answer is: it depends. A recent <a href=\"https:\/\/www.nar.realtor\/magazine\/real-estate-news\/judge-approves-nar-settlement-in-sitzer-burnett-case\">court settlement by the National Association of Realtors<\/a> (NAR) has shifted this expectation to buyers, but sellers can still choose to pay the buyer\u2019s agent commission as part of the negotiation process. In many markets, this remains a common practice to attract buyers, especially those who might struggle to cover their agent\u2019s fees upfront.<\/p>\n<p>If the seller decides to pay, this commission is typically deducted from the proceeds of the sale at closing. However, under the new structure, it is not an automatic requirement. Sellers now have the flexibility to decide whether offering this incentive aligns with their goals and the market conditions.<\/p>\n<div id=\"section--2\" data-toc-header=\"What is a buyer\u2019s agent commission?\" data-toc-type=\"head\"><\/div>\n<h2>What is a buyer\u2019s agent commission?<\/h2>\n<p>A buyer\u2019s agent commission is the fee paid to the real estate agent representing the buyer in a home sale. This commission is typically calculated as a percentage of the home\u2019s final sale price, often ranging between 2.5% and 3%.<\/p>\n<p>For instance, if a home sells for $425,000:<\/p>\n<ul>\n<li aria-level=\"1\">A 3% commission would amount to $12,750.<\/li>\n<li aria-level=\"1\">A 2.5% commission would total $10,625.<\/li>\n<\/ul>\n<p>Later in this post, we\u2019ll provide a table with more examples of buyer\u2019s agent commission costs based on varying home prices and percentages.<\/p>\n<div id=\"section--3\" data-toc-header=\"How did commissions work in the past?\" data-toc-type=\"head\"><\/div>\n<h2>How did commissions work in the past?<\/h2>\n<p>Traditionally, <a href=\"https:\/\/www.homelight.com\/blog\/realtor-fees\/\">sellers paid both the listing agent\u2019s fee<\/a> and the buyer\u2019s agent\u2019s commission as part of the overall transaction costs. This longtime model was designed to make it easier for buyers to afford professional representation without incurring significant out-of-pocket expenses.<\/p>\n<p>For example, on a $425,000 home with a 6% total combined commission, the seller would need to pay $25,500. At closing, the commissions would be split up, generally like this:<\/p>\n<ul>\n<li aria-level=\"1\">$12,750 would go to the listing agent.<\/li>\n<li aria-level=\"1\">$12,750 would go to the buyer\u2019s agent.<\/li>\n<\/ul>\n<p>Following the split, both agents would typically share a portion of their earnings with their respective brokerages. This default equation is no longer the expected standard.<\/p>\n<div id=\"section--4\" data-toc-header=\"What changed with the NAR settlement?\" data-toc-type=\"head\"><\/div>\n<h2>What changed with the NAR settlement?<\/h2>\n<p>Following a series of lawsuits, a federal court determined that the NAR&#8217;s long-established agent commission structure and policies <a href=\"https:\/\/www.jdsupra.com\/legalnews\/real-estate-commission-structure-found-4364334\/\">infringed on antitrust laws<\/a>. The court found that NAR mandates pressured home sellers into paying a fee that could be paid by the buyer.<\/p>\n<p>The <a href=\"https:\/\/www.homelight.com\/blog\/buyer-real-estate-commission-rules-and-regulations\/\">NAR settlement changed the rules<\/a> and shifted the responsibility for paying the buyer\u2019s agent commission to buyers. Sellers are no longer automatically expected to cover this fee. This adjustment provides sellers with greater flexibility in managing their costs but also creates new considerations when pricing and marketing their homes.<\/p>\n<p>Sellers may still choose to pay the buyer\u2019s agent commission in certain scenarios, especially as a strategic tool to attract more buyers.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Following a landmark court settlement, new Realtor fee rules are in place for home sellers and buyers. Do sellers pay the buyer\u2019s agent commission?<\/p>\n","protected":false},"author":298,"featured_media":52995,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"cybocfi_hide_featured_image":"","footnotes":""},"categories":[322,808],"tags":[],"class_list":["post-52993","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-logistics","category-real-estate-agent-commissions"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.0 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Do Sellers Pay the Buyer\u2019s Agent Commission?<\/title>\n<meta name=\"description\" content=\"Following a landmark court settlement, new Realtor fee rules are in place for home sellers and buyers. Do sellers pay the buyer\u2019s agent commission?\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.homelight.com\/blog\/do-sellers-pay-buyers-agent-commission\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Do Sellers Pay the Buyer\u2019s Agent Commission?\" \/>\n<meta property=\"og:description\" content=\"Following a landmark court settlement, new Realtor fee rules are in place for home sellers and buyers. 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Articles, guides, and advice from top agents all over the U.S.","email":"support@homelight.com","telephone":"(888) 688-0350","legalName":"HomeLight","foundingDate":"2012-01-01","numberOfEmployees":{"@type":"QuantitativeValue","minValue":"201","maxValue":"500"}},{"@type":"Person","@id":"https:\/\/www.homelight.com\/blog\/#\/schema\/person\/7d7103b037dcb5e844946ec92b02a128","name":"Richard Haddad","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.homelight.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/fbb89d16f303ea1de47fd69852400830b4a663ea6dbb4eecafbea5c1403da721?s=96&d=blank&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/fbb89d16f303ea1de47fd69852400830b4a663ea6dbb4eecafbea5c1403da721?s=96&d=blank&r=g","caption":"Richard Haddad"},"description":"Richard Haddad is the executive editor of HomeLight.com. He works with an experienced content team that oversees the company\u2019s blog featuring in-depth articles about the home buying and selling process, homeownership news, home care and design tips, and related real estate trends. Previously, he served as an editor and content producer for World Company, Gannett, and Western News &amp; Info, where he also served as news director and director of internet operations.","sameAs":["https:\/\/www.homelight.com","https:\/\/www.linkedin.com\/in\/richard-w-haddad"],"url":"https:\/\/www.homelight.com\/blog\/author\/richardhaddad\/"}]}},"_links":{"self":[{"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/posts\/52993","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/users\/298"}],"replies":[{"embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/comments?post=52993"}],"version-history":[{"count":0,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/posts\/52993\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/media\/52995"}],"wp:attachment":[{"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/media?parent=52993"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/categories?post=52993"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/tags?post=52993"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}