Who Pays the Real Estate Agent? What Buyers & Sellers Need to Know

The answer for this question changed in August 2024 and you may have more leverage and more savings than you think.

Buying or selling a home already feels like juggling flaming torches while balancing on an Excel spreadsheet. For decades, at least one thing seemed simple: the home‑seller paid both agents’ commissions, usually 5 – 6 percent of the sale price. But a $418 million settlement between the National Association of Realtors and multiple plaintiffs rewrote that script. As of August 17, 2024, commissions are no longer baked into MLS listings, and buyers must sign a written agreement that spells out how and how much their agent will be paid before touring any home. So, who covers the agent’s fee now? It’s a case-by-case decision and here’s how it works.

Key Takeaways

1. Commissions are a starting point, not a sticker price. Ask three agents what they charge and why.
2. Buyers control their agent’s paycheck. Put the agreement in writing before you tour, then decide whether to fund it yourself or fold it into the offer.
3. Sellers can still “sweeten the pot.” Concessions that cover a buyer’s agent fee can widen your pool of offers.
4. Transparency = leverage. Clear, early cost disclosures give both sides the numbers they need to negotiate and potentially save thousands.

Commission Rules: Then vs. Now

How the New Rules Play Out in Real Life?

Buyers pick a payment strategy.
They can:

• Pay their agent directly at closing.
• Request a seller credit to cover the fee.
• Accept a reduced‑service or “flat‑fee” arrangement.

Sellers choose a marketing stance.

Open‑ended: List the home with no promise of buyer‑agent pay, then weigh each offer, including any request to cover the agent fee.

Proactive: Offer a concession (e.g., 2 % of price) that the buyer can apply toward agent pay or closing costs. This can still be advertised outside the MLS, via flyers, email, or when buyer agents call for showings.

Everyone signs earlier and clearer paperwork.

Brokers must spell out exactly what they’ll do and what it will cost before any house‑hunting road trip. Some firms now require an exclusive agency contract on Day 1; others stick to non‑exclusive “showing agreements.”

What About Closing Costs?

Commissions are just one slice of the closing‑cost pie.

Remember, every line item is negotiable, especially now that commission math is off the MLS scoreboard.

Final Word

The 2024 NAR settlement didn’t abolish commissions, it put them under a spotlight. Whether you’re chasing offers or selling your home, knowing who pays what puts you in the driver’s seat.

The next time someone asks, “Who pays the real‑estate agent?” you can smile and answer, “That depends, how good a negotiator are you?”

 Frequently Asked Questions