Do sellers pay realtor fees? Since August 2024, the answer is no longer a simple yes. The NAR settlement decoupled buyer and listing agent commissions, so buyers must now agree to their agent's fee in writing before touring homes. Sellers can still cover that fee through concessions, but it must be negotiated deal by deal. Knowing how this works before you start your search helps you avoid a costly surprise at closing. Note that this article covers the US framework; if you are buying in Australia, the rules differ and you should confirm local requirements with a licensed agent in your state.
How the 2024 NAR Settlement Changed Who Pays Realtor Fees
For decades, the standard practice in US real estate was straightforward: the seller paid a combined commission, typically split between their listing agent and the buyer's agent, and that offer was posted directly on the Multiple Listing Service (MLS). Sellers typically covered buyer agent fees as part of the standard commission split, so buyers rarely thought about the cost at all.
That system ended on August 17, 2024, when the National Association of Realtors rule prohibiting offers of buyer agent compensation on the MLS officially took effect. The rule came out of a landmark antitrust settlement that challenged whether tying buyer agent fees to MLS listings distorted competition and inflated commissions.
The practical effect is significant. Sellers and their listing agents can no longer advertise a buyer agent commission on the MLS. Any agreement about how a buyer's agent gets paid must now happen separately, either directly between the buyer and their agent or through negotiation at the offer stage.
This also means the old default no longer applies automatically. Buyers used to assume their agent was "free" because the seller would cover the cost. Now, buyers enter the process with a direct financial relationship with their agent, one that must be defined in writing before they step inside a home.
The change does not mean buyers will always pay out of pocket. Sellers can still offer to cover buyer agent fees as part of a negotiated concession. But nothing is assumed, and nothing is guaranteed. Every transaction starts fresh.
Do Sellers Pay Realtor Fees Today?
Sellers are not required to pay buyer agent fees, but many still do. The mechanism has simply changed. Instead of a pre-set commission offer posted on the MLS, sellers now choose whether to cover a buyer's agent cost as part of offer negotiations. In competitive markets where sellers want to attract the widest pool of buyers, covering that fee can make a property more appealing.
Commission rates have also shifted since the settlement. The average real estate commission rate fell to 4.96% during the early months of 2025, according to SoFi. That compares to the traditional 6% figure that dominated the industry for years. For context, Clever Real Estate's 2026 research found that only 8% of sellers believe the traditional 6% rate is fair for the services provided.
Sellers are also increasingly willing to negotiate. The same Clever Real Estate survey found that 93% of sellers who asked their agent for a lower commission successfully got a reduction. These figures suggest that the old assumption of a fixed, non-negotiable commission is largely gone.
What does this mean for you as a buyer? The seller's willingness to cover your agent's fee depends on the specific property, the market conditions, and how the offer is structured. When sellers have more properties competing for fewer buyers, concession requests are more likely to succeed. In a tight market with multiple offers, a seller may decline to absorb any buyer agent costs.
Sellers still pay their own listing agent separately. That fee is a direct agreement between the seller and their agent, and it is not affected by whether the seller also covers the buyer's agent. Total seller closing costs, including agent fees, transfer taxes, and other expenses, add up to a significant share of the final sale price, per Redfin's 2025 data.
The short answer: sellers can pay, often do pay, but are not obligated to.
What Buyers Are Now Expected to Pay and Sign
Before you tour a single home, you are now required to sign a written buyer representation agreement with your agent. This is not optional. The NAR rule that took effect August 17, 2024 made this a mandatory condition of the new commission framework.
The agreement must specify the exact compensation your agent will receive, stated as a flat dollar amount, a percentage, or another objective figure. Vague or open-ended fee language is not permitted under the new rules. You need to know what you owe before you walk through a door.
This matters because it creates a direct financial obligation between you and your agent, regardless of what the seller agrees to later. If the seller covers the fee through a concession, that amount offsets what you owe under the agreement. If the seller covers nothing, you pay your agent directly at closing.
The written agreement also protects you. It locks in the fee your agent can charge, which means they cannot later claim a higher commission than what was agreed. Read it carefully before signing, and make sure the compensation figure reflects what you actually negotiated.
Some buyers feel uncomfortable signing a financial commitment before they have found a home. That discomfort is understandable. The practical solution is to make sure the agreement is clear, specific, and limited to the terms you have discussed. An agent who cannot explain every line of that document is a red flag worth taking seriously.
How to Use Seller Concessions to Cover Your Buyer Agent Fee
Seller concessions are the most practical way to have your agent's fee paid without bringing extra cash to closing. A concession is an amount the seller agrees to credit toward your closing costs as part of the purchase offer. Since the NAR rule change, this is the primary route buyers use to shift the agent fee to the seller's side of the transaction.
The process has three steps. Follow them in order, and you give yourself the best chance of securing a concession that covers your agent's cost without killing the deal.
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Define a specific, objective compensation amount in the buyer agreement. Before you make any offer, your written buyer representation agreement must state your agent's fee as a concrete figure, either a flat dollar amount or a clear percentage of the purchase price. Vague language is not permitted under the new rules, and a precise number also makes the next two steps easier. You cannot ask a seller to cover an amount you have not already defined in writing.
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Inquire about seller-offered concessions off the MLS. Sellers can no longer post buyer agent compensation offers on the MLS, but they can communicate willingness to offer concessions through other channels. Before submitting a formal offer, your agent can ask the listing agent directly whether the seller is open to covering buyer agent costs. This off-MLS conversation costs nothing and tells you how much negotiating room you have before you put anything in writing.
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Request that the seller cover the agreed-upon buyer agent fee as part of the formal purchase offer. Once you know the seller's position, include the concession request explicitly in your offer. State the dollar amount and specify that it is to be applied toward your buyer agent fee at closing. Sellers in slower markets, or those motivated to close quickly, are more likely to accept this. In a multiple-offer situation, you may need to weigh whether the concession request makes your offer less competitive.
Timing matters here. In markets where buyers have more options, requesting a concession rarely derails a deal. Redfin's 2025 data shows that seller closing costs already add up to a substantial portion of the sale price, so absorbing a buyer agent fee may represent a smaller share of what they are already expecting to pay.
A clear buying strategy that accounts for agent fee negotiations from the start puts you in a much stronger position than trying to sort it out mid-offer. Know your numbers before you make your first move.
How Do FHA and VA Loan Rules Affect Buyer Agent Fee Financing?
Government-backed loans add a layer of complexity to buyer agent fee arrangements that conventional financing does not. FHA and VA loans each carry their own rules about what costs a borrower can pay, and those rules do not always align neatly with the post-NAR settlement framework.
For FHA loans, the Department of Housing and Urban Development has confirmed that buyer agent fees are not an allowable closing cost that can be rolled into the loan balance. An FHA borrower cannot finance the agent fee directly through the mortgage. However, seller concessions are permitted under FHA guidelines up to a defined cap of the purchase price, and those concessions can cover the buyer agent fee at closing. FHA buyers can still have the seller pay their agent's fee, but it must flow through a negotiated concession rather than being wrapped into the loan.
VA loans follow a different framework. Historically, VA guidelines restricted what fees a veteran borrower could pay, and buyer agent fees fell into a gray area after the NAR settlement. The Department of Veterans Affairs issued guidance in 2024 allowing VA borrowers to pay buyer agent fees directly, provided those fees are reasonable and customary for the market. This removed the earlier concern that VA buyers might be locked out of representation under the new commission rules. VA buyers can also request seller concessions to cover the fee, and VA loan rules allow seller concessions up to a defined cap of the loan amount for certain costs.
For both loan types, financing the agent fee directly into the loan balance is not available. Your options are to pay the fee out of pocket, negotiate a seller concession to cover it, or structure your offer so the concession fits within the applicable cap for your loan type. Talk to your lender early so you know which ceiling applies before you draft your buyer agreement.
Do Realtor Fees Vary by Region After the Settlement?
Commission rates vary by market, and the NAR settlement has not erased those differences. Local conditions, competition among agents, and typical price points all shape what buyers and sellers actually negotiate.
At the national level, the average commission rate fell to 4.96% in early 2025, and the listing agent's share alone averages approximately 2.98% nationally. Those figures are averages, not rules. Where home prices are high, agents sometimes accept a lower percentage because the absolute dollar amount is still substantial. Where prices are lower, agents may hold closer to standard rates because the same percentage yields less.
Ask your agent what the typical buyer agent fee looks like in the specific area where you are buying, then compare that against what you have agreed to in your written buyer representation agreement. The settlement created more room to negotiate, but local norms still shape what is reasonable to ask for and what a seller is likely to accept.
When Does Hiring a Buyers Agent Make Sense for You?
Representation adds the most value when the stakes are high and the process is unfamiliar. If you are buying in a competitive market, purchasing for the first time, or trying to access properties before they hit public portals, a buyer's agent gives you a clear edge over buyers going through the process alone.
A skilled agent who negotiates a lower purchase price or spots a structural issue before you commit can more than offset the fee. If a seller concession covers your agent's cost, professional representation comes at no direct out-of-pocket expense.
Elevate Buyers Agents is a licensed buyers agency operating across the Sunshine Coast and Noosa regions of Australia. The agency handles the full buying process, from initial strategy and property search through to inspection, valuation, negotiation, and settlement, and provides access to off-market properties not publicly listed on standard portals. Buyers in those regions benefit from local knowledge and dedicated advocacy throughout a competitive market.
Prices and plan limits verified as of October 2026.
FAQs
How much commission do you get on a $300,000 house?
Commission is typically calculated as a percentage of the sale price. The national average has fallen from the traditional 6% figure, so the total commission on any given sale is lower than many sellers and buyers expect. That total is split between the listing agent and the buyer's agent according to whatever each party has separately agreed. Neither percentage is fixed, and both are negotiable before any agreement is signed.
Who pays most of the closing costs in a real estate transaction?
Sellers generally pay the larger share of closing costs. Seller closing costs typically cover the listing agent fee, transfer taxes, and other transaction expenses, and they add up quickly as a share of the sale price. Buyers pay their own separate closing costs, covering items like loan origination fees, title insurance, and prepaid expenses, but those costs are generally lower as a percentage of the purchase price.
Can a seller refuse to pay any part of the buyer’s agent fee?
Yes. Sellers have no obligation to cover a buyer's agent fee. They can decline any concession request, including one that covers buyer agent compensation. In a competitive market with multiple offers, sellers are in a stronger position to refuse. In a slower market, turning down a reasonable concession request may cost them a sale, so most sellers weigh the request against their motivation to close.
What happens if a buyer cannot afford to pay their agent’s fee directly?
The most practical path is to negotiate a seller concession that covers the fee as part of the purchase offer. If the seller agrees, the concession is credited at closing and offsets what you owe your agent under the written buyer representation agreement. FHA borrowers can use seller concessions up to the FHA cap for this purpose. VA borrowers can also use concessions within the applicable VA cap. If no concession is available and you cannot pay directly, you may need to reassess the fee amount with your agent before proceeding.
Is a written buyer representation agreement required in every state?
The NAR settlement made written buyer representation agreements a national requirement before any home tour, but individual states can layer additional rules on top of that baseline. Some states had their own mandatory agreement laws before August 2024, while others are still updating their regulations to align with the new framework. Check with a licensed agent or your state's real estate commission to confirm what your specific state requires, including any rules about agreement length, cancellation rights, or fee disclosure format.
Conclusion
Sellers are no longer automatically responsible for buyer agent fees. Since August 2024, every buyer enters the market with a direct fee obligation to their own agent, defined in writing before the first home tour. Sellers can still cover that cost through negotiated concessions, and many do, but nothing is guaranteed by default.
Before you start touring homes, confirm your buyer representation agreement is specific and clear. Ask about seller concession flexibility before making an offer, and understand how your loan type affects what concessions you can accept. Those three steps give you the best chance of securing professional representation without an unexpected bill at closing.
