The buyer's agent commission is typically paid by the seller. The way this works is pretty simple. In most cases, when a seller hires a realtor, they will agree to pay the real estate agent a fee of 4% to 6% to sell the home. The seller's agent will typically agree to share this commission with any cooperating buyer's agents.

The seller generally pays the buyer’s agent fees as part of the commission structure. In most real estate transactions, the seller agrees to pay a total commission fee, split between the listing agent (representing the seller) and the buyer’s agent. As a buyer, you don’t have to pay your agent’s fees out of pocket directly in most circumstances.

Sellers have historically paid both the buyer and seller’s agent fees from the proceeds of the sale. But as of August 17, 2024, buyers will now agree to their agent’s fee in writing before touring. Buyers can still ask the seller to cover the buyer’s agent fee when they make an offer.

Standard practice is that the seller pays the real estate commission of both the listing agent and the buyer’s agent, according to Ruth Johnson, a Realtor® in Austin, TX. But she also points out that “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.“

For decades, it was the standard for sellers to pay the buyer's agent commission due to a rule by NAR. This rule, part of the Participation Agreement, mandates that listing brokers offer compensation to buyer brokers as a condition for listing on Realtor-affiliated MLS platforms.