How Real Estate Agents Get Paid


Real estate agents play a key role in guiding you through the homebuying process, helping you find your dream home, understand paperwork and negotiate a fair price.


Since August 2024, how they get paid has changed. Keep reading to learn what that means for you as a buyer.


Buyer and Seller Commissions

Under these new rules, homebuyers are now responsible for paying their real estate agent separately from the seller’s agent’s commission. This means you must negotiate your agent’s commission rate before you begin viewing homes. Sellers no longer cover the buyer’s agent commission by default, though in a slower market, some may choose to pay the commission to make their property more appealing.


GOOD TO KNOW
You may be able to save money by interviewing agents about their commission fees.
Always ask how your agent will be paid and make sure the commission agreement is documented in writing.


Additional Fees

Some buyers may encounter “fees for service.” These can include:

  • Retainer Fees – Paid upfront to secure an agent’s services; sometimes refunded at closing.
  • Administrative or Transaction Fees – Used to offset paperwork and processing costs; some agents may waive these fees.


Want to learn more about agent fees and how they work?
Sign up for our free homebuyer education course!

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