Who Pays Real Estate Agent Commissions?

I can’t be the only one feeling a very strong ‘back to work’ energy right now. The holidays are over, and at least in my little world there’s a sense of it being the time to start projects and head into the next year with purpose. It’s the time of year when the most new buyers reach out to me to make a plan for their upcoming house hunt.

A question that comes up with almost every new buyer is ‘how do I pay you?’ My first choice is obviously my weight in gold bars. I usually find out immediately that that’s not going to happen, so I change tack and here’s what I say.

We had a recent change. Before August 17th, 2024 (also my due date) the seller’s agent negotiated their commission as well as a commission for the buyers’ agent. Both commissions were published with the listing and paid from the proceeds of the home sale at close.

The seller’s agent commission is predominately the same. The seller’s agent still negotiates their commission with the seller. It’s still usually a percentage of the sale’s price paid from the proceeds of the sale at close.

The big change is for the buyer’s agent. A rule change in response to a settlement with the National Association of Realtors means the buyer’s agent commission is no longer published. Now the buyer agrees to a fee with their buyer’s agent in writing before touring homes, and then can request that the seller cover this fee when they write an offer. We are still seeing most offers include the request to cover the buyer’s agent fee. Many sellers will continue to pay this fee, but it could vary home to home based on competitiveness or other factors within the offer.

I do not bill hourly. In my business there is still no charge per email, per home toured, etc etc. If we look at 50 homes and then you decide not to buy I just ask that you keep me in mind in the future, and recommend me to your friends. No charge. If you do buy a home you will be responsible for the commission we agree on before we start touring, but we will do everything we can to get the seller to help cover that expense.

I really hope this helped answer one of the most common questions I get. If I still left you confused please reach out, I would love to hear from you!