Who Pays Realtor Fees: Buyer or Seller?
Traditionally the seller pays the realtor fees, and that is still the most common arrangement. After the 2024 practice changes, sellers pay their listing broker, while buyer-agent compensation is negotiated separately between the buyer and the agent they hire.
Traditionally the seller pays the realtor fees, and that is still the most common arrangement. After the 2024 practice changes, sellers pay their listing broker, while buyer-agent compensation is negotiated separately between the buyer and the agent they hire. The short answer is "usually the seller," but the full answer depends on what each party agrees to.
The traditional model
Under the long-standing model, the seller signs a listing agreement that sets the listing broker's compensation, typically a percentage of the sale price. The listing broker then offers a share of that compensation to whichever broker brings a ready, willing, and able buyer. In practice, both sides of the transaction are paid from the seller's proceeds at closing, which is why people say the seller pays both agents.
That structure made the seller's proceeds the single source of commission money, but it did not mean the seller had no leverage. The compensation was always a negotiated term in the listing agreement, and the seller could discuss the amount before signing.
What changed in 2024
Practice changes tied to the NAR settlement took effect on August 17, 2024. Four changes matter for the "who pays" question:
- Offers of buyer-agent compensation are no longer published on the MLS.
- Written buyer agreements are required before a buyer tours a home with an agent.
- Commissions are not set by law and are fully negotiable.
- Seller concessions may be communicated.
The result is that buyer-agent compensation is now a separate negotiation. A buyer may agree to pay their agent directly, ask the seller for a concession to cover it, or negotiate some combination. Sellers can still choose to contribute, but that contribution is a concession rather than an MLS-published offer.
Three ways buyer-agent compensation can be handled
| Approach | Who pays the buyer's agent | Notes |
|---|---|---|
| Seller concession | The seller contributes toward the buyer's costs, which can include buyer-agent compensation. | The concession is negotiated in the offer and is not published on the MLS. |
| Buyer pays directly | The buyer pays their agent under the written buyer agreement. | The buyer may finance or budget for this cost, subject to lender rules. |
| Mixed or negotiated | The parties split or adjust compensation as part of the deal. | Terms are specific to each transaction and fully negotiable. |
What sellers typically pay at closing
Beyond the listing broker's compensation, sellers commonly pay for title insurance, transfer taxes and recording fees, escrow or settlement fees, and prorated property taxes. Exact responsibility varies by state, by contract, and by what the parties negotiate. Some of these costs are customary, but customary is not the same as mandatory.
The Closing Disclosure lists the final figures for both sides. Review it carefully, and compare it with the Loan Estimate on the buyer's side if you are also buying. The CFPB explains each category and how to question a charge.
What buyers typically pay
Buyers commonly pay their own loan costs, appraisal, prepaid items such as taxes and insurance, and their inspection and moving costs. Since the 2024 changes, a buyer may also pay their agent directly under a written buyer agreement. Whether the seller offsets any of that through a concession is a negotiation, not an entitlement.
Who really "pays" in economic terms
Money for commissions ultimately comes out of the transaction: the buyer's funds and the seller's proceeds are two sides of one deal. If a seller agrees to a concession, the seller's net proceeds fall unless the price is adjusted. If the buyer pays their agent directly, the buyer's cash needs rise. The label on the check matters less than the total economics of the offer.
This is why comparing offers requires looking at price, financing, concessions, and timeline together. An offer with a higher price but a large concession can net the seller less than a cleaner offer at a slightly lower price. Model both sides before you decide.
How the split worked before and after 2024
Before the practice changes, a listing broker who offered compensation to buyer brokers typically split the total commission between the two sides. A seller might see one number in the listing agreement and understand that it covered both the listing side and the buyer side. The buyer rarely wrote a check for their agent, because the buyer's broker was paid out of the seller's proceeds.
After the changes, the two sides are more clearly separate. The seller negotiates with the listing broker. The buyer negotiates with the buyer's agent under a written agreement. If the seller wants to help with the buyer's side, the tool is a concession, and it has to be negotiated into the offer. This separation gives buyers and sellers more direct control over what they pay, but it also means more conversations and more decisions.
How to negotiate who pays what
Compensation is negotiable on both sides, so think about it before you get to the closing table.
- As a seller, decide whether you are willing to contribute to buyer costs, and how much, before offers arrive.
- As a buyer, know what you can afford to pay your agent if the seller will not contribute.
- Put any concession in the written offer so it is part of the deal, not a side promise.
- Check with a lender on how a concession affects your loan before you rely on it.
- Compare offers on net proceeds or net cash needed, not just on price.
A concession is not free money. For the seller it reduces proceeds; for the buyer it may raise the price or affect loan terms. Both sides should model the full picture. The realtor commission calculator is a quick way to see how a contribution changes the seller's net.
How to see your side of the numbers
Use the realtor commission calculator to see how compensation affects seller proceeds at different rates, and review the who pays what reference for a side-by-side breakdown of typical buyer and seller costs. For the underlying rules, see the realtor commission rules reference.
This guide is general information, not legal, tax, or financial advice. Responsibility for specific closing costs varies by state, contract, and negotiation.
Frequently asked questions
Does the buyer or seller pay realtor fees?
The seller typically pays the listing broker, and historically that broker shared compensation with the buyer's broker. Since August 2024, buyer-agent compensation is negotiated separately and may be paid by the buyer, the seller through a concession, or a mix.
Do buyers now have to pay their own agent?
Not automatically. Buyers sign a written agreement before touring that states compensation, but the amount can be offset by a seller concession or otherwise negotiated. Many transactions still involve the seller contributing.
Is the seller still required to offer buyer-agent compensation?
No. Offers of buyer-agent compensation are no longer published on the MLS, and there is no rule requiring a seller to offer it. A seller may still choose to communicate a concession.
What costs does a seller pay besides commission?
Sellers commonly pay title insurance, transfer taxes and recording fees, escrow or settlement fees, and prorated property taxes. These vary by state and contract.
What costs does a buyer pay at closing?
Buyers commonly pay loan costs, appraisal, prepaid taxes and insurance, and their inspection costs. They may also pay their agent under a written buyer agreement.
Can a seller refuse to pay any realtor fees?
A seller can negotiate compensation and concessions, but the listing agreement still governs what the seller owes their own broker. The terms are negotiable and should be reviewed before signing.
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Cite this page
ListWithAgent Editorial Team. “Who Pays Realtor Fees: Buyer or Seller?.” https://listwithagent.com/learn/who-pays-realtor-fees/. Accessed 2026-09-12.
Sources
- CFPB — Closing Disclosure explainer — Consumer Financial Protection Bureau — consumerfinance.gov
- CFPB — What fees or charges are paid when closing on a mortgage and who pays them? — Consumer Financial Protection Bureau — consumerfinance.gov
- NAR — Settlement FAQs: practice changes for buyers and sellers — National Association of REALTORS® — nar.realtor
Every figure and rule on this page traces to the official publishers above. See our methodology.
Not a brokerage and not advice. List With Agent is not a real estate brokerage. We are an independent marketing and referral service that connects home sellers with licensed real estate agents. This page is general educational information, not legal, financial, or real estate advice.
By the ListWithAgent Editorial Team. Last updated 2026-09-12. Educational information only — not legal, financial, or real estate advice.