who pays realtor fees

who pays realtor fees

5 hours ago 4
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In most real estate transactions, the seller pays the realtor fees, which include commissions for both the seller's listing agent and the buyer's agent. This commission is typically a percentage of the home's sale price and is agreed upon between the seller and their listing agent. The total commission is then split between the seller's agent and the buyer's agent

. Although buyers do not usually pay realtor fees directly, these costs are generally factored into the home's sale price, meaning buyers indirectly contribute to paying these fees

. However, recent changes, such as those following the National Association of Realtors (NAR) lawsuit settlement, have made buyer agent commissions negotiable between buyers and their agents, potentially shifting some responsibility to buyers in certain cases

. To summarize:

  • Seller pays realtor fees: The seller pays the total commission, which is split between the listing and buyer's agents.
  • Buyer usually does not pay realtor fees directly: Buyers typically do not pay their agent's commission out of pocket.
  • Indirect buyer contribution: Buyers indirectly pay realtor fees as part of the home price.
  • Negotiation possible: Recent rule changes allow buyers to negotiate commissions with their agents, which may lead to buyers paying some fees in certain situations.

This is the standard practice in the U.S. and Canada, with some variations depending on local agreements and market conditions

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