Do Buyers Pay Realtor Fees When Purchasing a Home?
Do buyers pay Realtor fees? Learn how new commission rules impact homebuyers, what you might pay, and how to negotiate agent fees in today’s market.
If your parents or grandparents bought a house with the help of a real estate agent, chances are, the sellers paid their Realtor fees. In today’s housing market, a major legal settlement has changed agent commission rules. Many potential homebuyers are now asking, “Do buyers pay Realtor fees?”
Following a court-approved agreement with the National Association of Realtors (NAR) last year, homebuyers are now responsible for negotiating Realtor fees directly with their buyer’s agent.
With the help of top-rated experts, we’ll explain what’s changed, what you might pay in Realtor fees as a buyer, and your options to avoid this additional expense.
Step One: Consult with a Trusted Buyer’s Agent
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Do buyers pay Realtor fees?
While homebuyers are now expected to negotiate compensation directly with their own agents, which includes signing a buyer-broker agreement before touring properties, having a formal contract does not necessarily mean you’ll need to pay Realtor fees. You can still ask sellers to cover your agent fees.
In fact, as home sales have slowed due to higher interest rates, many sellers continue to offer to pay the buyer’s Realtor fees or make other concessions to sweeten a deal.
“Buyers seem to think that they have to pay a buyer’s agent commission,” says Al DiRusso, a top-rated agent in Charlotte, North Carolina. “And sellers feel that they do not have to pay a buyer’s agent commission at all. Both cases can be true.”
He adds that whether you end up paying out of pocket or securing a seller contribution depends on what you and your agent negotiate as part of your offer. “An experienced agent can show that it can be business as usual in terms of commission.”
Angie Chavez, a top agent serving the Atlanta area, agrees. “The NAR settlement added another layer of confusion, but has not impacted how business is handled. Most sellers are agreeing to pay at least something toward buyer-broker compensation. They understand the impact it could have by not doing so. They’re looking at this as a marketing tool now.”
How much will you pay in Realtor fees?
If you end up being fully responsible for your buyer’s agent fee, the typical rate ranges from 2% to 3% of the home’s sale price. On a median-priced $400,000 home, that could mean $8,000 to $12,000 — a significant added expense on top of your down payment, closing costs, and moving expenses.
“The [NAR commission] change can have an unintended negative effect on the most vulnerable group of buyers: first-time and lower-income buyers,” says Angelina Keck, a Houston-area agent with 20 years of experience. “Meanwhile, the luxury market is thriving and is unaffected, further widening the gap between classes.”
Here’s a look at what you might pay based on different home prices and percentages if a seller does not agree to pay your Realtor’s fees:
| Home price | 3% Realtor fee | 2.5% Realtor fee | 2% Realtor fee |
| $100,000 | $3,000 | $2,500 | $2,000 |
| $150,000 | $4,500 | $3,750 | $3,000 |
| $200,000 | $6,000 | $5,000 | $4,000 |
| $250,000 | $7,500 | $6,250 | $5,000 |
| $300,000 | $9,000 | $7,500 | $6,000 |
| $350,000 | $10,500 | $8,750 | $7,000 |
| $400,000 | $12,000 | $10,000 | $8,000 |
| $450,000 | $13,500 | $11,250 | $9,000 |
| $500,000 | $15,000 | $12,500 | $10,000 |
| $550,000 | $16,500 | $13,750 | $11,000 |
| $600,000 | $18,000 | $15,000 | $12,000 |
| $650,000 | $19,500 | $16,250 | $13,000 |
| $700,000 | $21,000 | $17,500 | $14,000 |
| $750,000 | $22,500 | $18,750 | $15,000 |
| $800,000 | $24,000 | $20,000 | $16,000 |
| $850,000 | $25,500 | $21,250 | $17,000 |
| $900,000 | $27,000 | $22,500 | $18,000 |
| $950,000 | $28,500 | $23,750 | $19,000 |
| $1,000,000 | $30,000 | $25,000 | $20,000 |
| $1,500,000 | $45,000 | $37,500 | $30,000 |
The 2%-3% fee example amounts in this table aren’t set in stone. Commission rates are negotiable, and your agreement with your agent will outline the specific terms. Some agents or brokerages may offer a reduced commission for loyal clients, charge a flat fee, or agree to only collect payment if the seller doesn’t cover their portion.