Who Pays Buyer’s Agent Fees?

Most buyers and sellers work with licensed Realtors when entering the U.S. real estate market, and buyer’s agent fees are usually paid by the seller as part of the total commission—often around 6% split between the listing agent and the buyer’s agent—rather than by the buyer out of pocket. According to the National Association of Realtors (NAR), 89% of buyers used an agent or broker during the purchase process in 2024. Real estate agents guide buyers through each purchase step, from securing pre-approval from lenders to attending the closing appointment. 

One of the most common questions in any home sale is who pays those fees, how sellers afford them, and whether the amount can be negotiated. That question has become even more important after the recent NAR settlement, which changed how commissions are discussed and made fee transparency a bigger issue for both buyers and sellers.

This guide explains what buyer’s agent fees are, who pays them, how commission splits work, what happens if a deal falls through, how the 2024 rule changes affect home transactions, and how to find a trustworthy Realtor. If you’re buying or selling a home and want to budget clearly, avoid confusion about commissions, and hire with confidence, this will give you a straightforward answer.

What Are Buyer’s Agent Fees?

Before you can explore who pays real estate fees, it helps to know how your Realtor gets paid. Most agents work on commission-based contracts. They will receive a percent of the home sale profits after the deal closes.

Because of this, agent pay varies widely from one transaction to the next. They will receive a smaller paycheck from a buyer who wants a small condo compared to a buyer searching for a mansion. 

The number of hours a Realtor works before they get paid also varies from one client to the next. A buyer could look at three houses, fall in love with one, and have a seamless purchase process in a few weeks. Another buyer could spend months looking at dozens of homes before they’re even ready to place a bid. 

The services your Realtor provides should not change depending on your needs as a buyer. Even if it takes a little longer for you to find your ideal home, your agent should be committed to setting up showing appointments, helping you with inspections, and reviewing appraisal reports.

Examples of Buyer’s Agent Commission Fees

Before the NAR settlement, the typical commission for a buyer’s agent was often discussed as part of a broader real estate commission structure, with 3% as a common example. This was usually paid by the seller. Here are a few examples highlighting how commissions and profitability can vary from one buyer to the next, since they are generally calculated from the home’s final sale price or home’s sale price. 

• Client A buys a house for $500,000 and the Realtor receives a $15,000 buyer’s agent commission after the closing appointment, based on the home’s final sale price.
• Client B buys a house for $200,000 and the Realtor receives $6,000 in commissions after the closing appointment, also based on the home’s final sale price.
• Client A wants to buy a specific house in a desirable neighborhood. They place a bid, go under contract, and close in less than a month. This means the Realtor gets paid $15,000 for a month’s of work.
• Client B is new to the area and takes their time looking at homes and exploring different neighborhoods. The buyer’s agent works with them for three months before the closing appointment. This brings the $6,000 commission down to $2,000 per month.

Realtors also juggle multiple clients which can help with this volatility. There may be times when they receive a large check for the month and other times when their profits are smaller. For simplicity, this example also didn’t cover aspects like brokerage fees and marketing services, which can further eat into the profits of a real estate agent.

Who Typically Pays the Buyer’s Agent Fees?

In most cases, the seller pays the buyer’s agent fees as part of the overall commission paid to both the listing agent and the buyer’s agent. Traditionally, sellers typically paid the total commission, which was split between both agents. The national average real estate commission is about 5.7% rather than a fixed 6%. In the example above, the seller of the $500,000 house would pay about $28,500 in commission fees using the 5.7% rate. 

Commissions typically range from 5% to 6% nationally, but can run from 4% to 8% depending on the market, which matters for both buyers and home sellers.

This structure benefits buyers by allowing them to work with a professional agent without having to cover their fees out-of-pocket. Many buyers spend several months (if not years) saving for a down payment so they can afford a home. If they had to pay their agents a commission on top of it, many people would be pushed out of the real estate market entirely. 

For example, the average down payment in 2026 is15% of the home’s value. If the median home price is $333,750 at the time, then a 3% commission fee would be around $10,000. Saving that extra money could lower the down payment that buyers have to work with or cause them to push back buying for another year while they save. 

It makes more sense for a homeowner to budget Realtor fees into their sales estimate. They don’t have to save any money up front because agent commissions are usually paid through the sale’s closing costs rather than out of pocket. This process also incentivizes sellers’ agents to get the highest sales price for their clients. The more a house sells for, the more everyone gets paid.

How Do Sellers Afford Real Estate Agent Fees? 

Homeowners who want to sell their properties need to crunch some numbers before they list. This will confirm that they can afford to list their house and cover all moving costs. In most cases, the real estate agent’s commission is a portion of the final sale price, not the profits from the sale, and realtor commission on the listing side varies by market; in Texas, the average listing commission is 2.93%, with typical rates ranging from 1% to 4%.

This means sellers need to confirm they will turn enough of a profit when listing to cover agent commissions. 

Here are a few examples illustrating the importance of checking the math before listing your house: 

• Homeowner A sells their house for $500,000 and does not have a mortgage. They pay $30,000 in Realtor fees and receive $470,000 for the sale.
• Homeowner B sells their house for $400,000 and has a $360,000 mortgage. They pay $24,000 in commission and receive $16,000 for the sale.

The second homeowner may lose money on the home sale once they pay their moving costs and any seller concessions. Their sale profits could also be less than their initial down payment depending on the market they bought in. By negotiating commission rates, potentially working with flat fee Realtors, or comparing discount brokers that may charge around 1% to 2%, some sellers can save money and break even on the deal.

Knowing what to expect from the recommended listing price and agent commissions can help sellers confirm that they aren’t losing money during the home sale process or reducing their sale proceeds more than expected.

Is It Possible to Negotiate Agent Fees?

Everything is a negotiation in real estate, including commissions. Both the buyer and the seller can negotiate fees with their Realtors before entering into agreements with them, and agent compensation is negotiable across markets and can vary by state. 

When selling a property, a homeowner might ask their Realtor to list their home for a 5% commission rate. The seller’s agent might split the fees at 2.5% for themselves and the buyer’s agent, or take a 2% commission fee and give 3% to the buyer’s agent. The homeowner and seller’s agent will typically discuss the fee split when they go over commission rates. In some states, such as California, average commissions are around 5.47%, which is why sellers should compare local norms before negotiating. Once an agreement has been reached, they will sign a listing agreement. 

Even a 1% drop in commission rates can have a big difference on the cost homeowners accrue when selling a property. Instead of paying $30,000 on a $500,000 home, a seller would only have to pay $25,000. That $5,000 in savings could be used to cover moving costs.  

Buyers can also ask their agents to accept lower commission fees, but this is less common. A buyer might ask the agent to concede a portion of their fees to make their offer more appealing to sellers. For example, if a seller plans to give a 2.5% commission to the buyer’s agent but only needs to give 2%, they can save $2,500. 

While buyers and sellers can negotiate real estate fees, agents can walk away or counter if they aren’t treated fairly. In hot markets, or with higher-priced homes, agents negotiate differently and sellers may have more leverage on rate. They can find other clients who are willing to pay them 3%. Know that if you try to lowball your real estate agent, they might walk away. Negotiate fairly, and use strong negotiation skills while respecting the time your agent puts into the sale.

Does the Buyer’s Agent Get Paid If the Deal Falls Through?

In most cases, the buyer’s agent does not get paid if a deal falls through. They only get paid when the sale closes. Depending on what caused the deal to break, the buyer can either choose to work with a new agent or stay with their current one and start the process over again. For example, if the seller pulls out unexpectedly, the buyer and their real estate agent will start touring homes again.  

The agent likely also won’t get paid if the agreement ends before the buyer finds a home. For example, if two parties work together for six months and the buyer hasn’t had an offer accepted, they might walk away from the Realtor and hire another. The real estate agent wouldn’t get paid for their time and efforts. 

However, some agents may have clauses in their contracts stipulating that the buyer or seller pays for specific services even if the sale doesn’t happen. This could be a flat fee for their time or a breakdown of specific expenses that the Realtor would like covered. Even if you hope to avoid paying commission after a failed deal, you may still owe agreed expenses, and in completed transactions other closing costs like attorney fees can still affect what you pay. For example, a seller’s agent could ask the homeowner to cover the cost of professional photos if they decide against selling the house and pull it from the market. Photos can be an expensive part of working in real estate. 

If you are worried about paying extra fees as a buyer, read any written buyer agreements carefully. Go over each clause that your real estate agent adds to their agreement and understand whether you might need to pay the agent directly for certain services. This way you won’t be surprised by unexpected fees because of a failed real estate transaction.

How Does the NAR Settlement Change Fee Structures?

There have been a lot of discussions about the 2024 NAR Settlement and how it will change real estate transactions under the new rules that took effect in August 2024. The settlement also included a $418 million payout to sellers. Some claim that buyers will have to start paying agent commissions, but this is not entirely true. The main goal of the suit is to increase transparency in each real estate transaction. Therefore, who pays the commission is now a more upfront part of negotiations. Here are a few key highlights from the NAR lawsuit that impact buyers: 

• Real estate agents must sign written buyer agreements before showing homes, and those agreements should spell out buyer agent compensation before tours. These agreements clarify the expectations of both parties working together and require buyers to actively agree to any flat fee costs or charges if a deal doesn’t go through.
• Listing and buyer’s agents can no longer use the multiple listing service (MLS) to advertise or offer compensation in the old way. This prevents real estate agents who represent buyers from steering them toward homes where they would get paid more.
• An agent’s commission is negotiable. Buyers do not have to immediately agree to an agent’s rate and can counter with their own commission offer. That said, a Realtor does not have to accept this counteroffer if it is deemed unfair.

Buyer agent compensation is now negotiated in writing, and a buyer may hire their own agent or ask for seller concessions. Historically, the seller pays realtor fees, but under the new rules who pays realtor fees and who pays realtor can be negotiated in the purchase agreement. In some transactions, one agent may be involved, or dual agents represent both sides only with proper disclosure under dual agency rules.

Buyers and sellers should not feel forced to accept specific terms. They also shouldn’t be misled during the home sale process so the buyer’s agent or listing broker gets paid more.

Know the Commission Expectations of Your Real Estate Agent

Buyers agent fees remain negotiable and may be handled through seller concessions, by the buyer paying their own agent, or through other agreed terms in the entire transaction. While both buyers and sellers have increased transparency because of the NAR settlement, it still makes sense to plan for how these costs will be covered based on the purchase price and local market norms. This is useful for buyers, who should budget not just for an agent’s fee but also related closing costs like property taxes. Sellers also don’t have to worry about saving to list their house because the fees are built into the overall home sale. 

If you are ready to buy a house, take time to interview Realtors and find a real estate agent you can trust. There are plenty of buyer’s agents out there, so it’s only a matter of finding a good personality fit for your needs. 

To find qualified Realtors in your area, turn to FastExpert. We have a large database of real estate professionals who have detailed profiles on their experience and the types of buyers they work with. You can read these profiles and contact a few agents you want to talk to. Try FastExpert today to compare a traditional agent with other paths, including a traditional sale, if that better fits your personal finance goals.