July 26th 2022

For both buyers and sellers, the help of a knowledgeable broker is valuable, but who pays for the services of the real estate agent? If you’re about to start your home-buying journey, you’re likely thinking about hiring a real estate agent.

But how does a realtor get paid when you buy a house? Well, buyers and sellers are responsible for paying for different fees, so it’s important to know best practices for a typical home sale.

Keep in mind that the commission earned by the broker in your deal can vary from state to state and even within an individual brokerage.

Here’s what you need to know about who pays the realtor fees and how much cash you can expect to contribute.

Who pays commission to the realtor?

Are you wondering who pays commission to the realtor involved in buying and selling a home? Standard practice is that the seller pays the real estate commission of both the listing agent and the buyer’s agent.   While sellers pay the fees, they usually wrap them into the price of the home.  In that sense, you could say the buyer pays the fees.  It totally depends on how you look at the situation!

How much are realtor fees?

A commission is a fee paid at closing by the home seller, unless some other arrangement has been made. The commission is typically a percentage of a home’s sales price, so if the commission is 6% on a $200,000 house, that would amount to $12,000, which is split between the buyer’s and seller’s agents.

All of the details about a real estate agent’s fee should be in the agreement you sign when you hire an agent—don’t be afraid to ask questions if there’s anything you don’t understand.

Generally, things like photography, the cost of listing the property, and the cost of any printed materials or signs are included in the fee, along with the real estate agent’s services, of course. If you have to do major staging or repair work, those costs will come out of your pocket.

Can you negotiate who pays the real estate agent?

A seller can negotiate the terms of the listing agreement—which contains the real estate agent fees—with the brokerage or agent.

In fact, even though the buyer usually pays most of the closing costs, they are up for negotiation, too. That’s one of the many things a good agent will do for a buyer—make sure you get the sweetest deal possible.

What else is important about commissions?

If you’re curious about the details of the real estate agent’s commission, it will all be spelled out in the contract you signed when you hired your broker to sell your property. This listing agreement outlines the agent’s commission, any transaction fees that may be charged during the process and how long this agent will represent you (usually the agreement is in place for 180 days).

Let's connect today and discuss your options, it's a great time to sell and buy at the Shore!