A realtor representing a buyer typically costs 2.5% to 3% of the home’s purchase price. On a $357,000 home, roughly the U.S. median, that’s about $8,900 to $10,700. Sellers still frequently pay this fee, but the automatic system where the seller always covered both agents is gone. Since August 17, 2024, every buyer signs a written agreement with their agent that locks in a specific fee before touring homes, and depending on how the deal comes together, you may owe some or all of that fee out of your own pocket at closing.
What Buyer’s Agent Commissions Look Like in 2026
The old model ran a total commission of 5% to 6% of the sale price, split roughly evenly between the listing agent and the buyer’s agent. That’s shifted. Industry surveys from early 2026 put total commissions near 5.7%, with buyer’s agents earning about 2.5% to 2.8% on a typical deal. On a $400,000 home, the buyer’s side alone comes out to $10,000 to $11,200.
None of these rates are set by law. Commission has always been negotiable, and the post-settlement rules made that negotiation more visible. Some agents charge a flat fee. Others tier their pricing to how much service you want. Whatever the number, it now has to be spelled out in writing before you ever walk through a front door with an agent.
The Written Agreement That Fixes Your Fee
Under the National Association of Realtors settlement effective August 17, 2024, agents participating in an MLS must have a signed written agreement with a buyer before touring any home, including live virtual tours.1National Association of REALTORS®. Written Buyer Agreements 101 It’s a binding contract that spells out what the agent will do and exactly what they earn.
The agreement has to state a specific dollar amount or percentage. Open-ended language like “whatever the seller is offering” isn’t allowed. It also caps what the agent can collect from any source: if you agreed to 2.5% and the seller happens to offer 3%, your agent keeps 2.5%, not the higher figure.1National Association of REALTORS®. Written Buyer Agreements 101
The term isn’t fixed by NAR policy. You can sign an agreement covering a single property, a single day, or a specific zip code.1National Association of REALTORS®. Written Buyer Agreements 101 If you’re not sure about an agent, start narrow. Agents may push for broader terms, but the rule gives you room to test the relationship first.
Who Actually Pays the Buyer’s Agent
Before August 2024, offers of compensation from the listing broker to the buyer’s broker were published directly in MLS listings. That’s now prohibited. Sellers can still offer to pay the buyer’s agent, but those offers happen outside the MLS, usually during negotiations on the purchase contract.2National Association of Realtors. National Association of Realtors Reminds Members and Consumers of Real Estate Practice Change Implementation on August 17, 2024
In practice, most sellers still offer some form of buyer agent compensation because it widens their pool of buyers. A seller who refuses to help with the fee limits their home to buyers who can bring that cash themselves. Amounts vary. Some sellers cover the full fee, some offer a reduced amount, some offer nothing. The safe assumption is no longer that the seller will handle it.
When You Pay Out of Pocket
Your representation agreement obligates you to pay your agent the agreed fee regardless of what the seller contributes. Two situations put buyers on the hook directly.
The first is a for-sale-by-owner transaction. A homeowner selling without an agent has no listing broker and no built-in commission structure. They may refuse to pay anything toward your agent. If your agreement calls for 2.5% on a $350,000 home, that’s $8,750 owed at closing from your own funds.
The second is a gap between what the seller offers and what your agreement requires. If your contract specifies 3% and the seller only offers 2%, you owe the remaining 1%. On a $400,000 purchase, that’s $4,000 on top of your down payment and other closing costs. You can ask the seller to close the gap as part of your offer, but if they decline, the obligation is yours. This is why the agreement’s terms matter before you make an offer, not after.
Ways to Reduce or Offset the Cost
Negotiate the Rate
Commission rates aren’t set by any law, regulation, or industry rule. You can negotiate, and the buyer agreement requirement forces that conversation upfront instead of burying the fee inside the transaction. Agents who know you’re comparing rates have an incentive to compete.
Buyers with strong financials have the most leverage. A mortgage pre-approval, a clear sense of what you want, and a willingness to handle your own property searches online signal that you’ll close quickly with less hand-holding. Some agents will trim their rate for a client who won’t take dozens of hours in showings. Others offer rebates at closing where legal.
Ask the Seller to Pay
The most common approach is making the seller’s payment of your agent fee a term of the purchase offer. You might offer the asking price with a provision that the seller pays your agent’s 2.5% commission. From the seller’s side, it looks the same as a slightly lower net price. In a balanced or buyer-friendly market, sellers routinely agree. In a hot market with multiple offers, you have less room.
Use Seller Concessions
Even without an explicit agreement to pay your agent, seller concessions written into the contract can sometimes cover the fee. A concession is a credit from the seller that reduces the buyer’s cash needed at closing. Lenders cap how large that credit can be. For conventional loans, Fannie Mae limits interested party contributions to 3% of the sale price when the loan-to-value ratio exceeds 90%, 6% when LTV falls between 75% and 90%, and 9% when it’s 75% or below.3Fannie Mae. Interested Party Contributions IPCs FHA loans allow seller contributions up to 6% of the purchase price. If you’re putting 3% down on a conventional loan, that 3% concession cap gets consumed quickly between closing costs and agent fees.
Mortgage Rules and Agent Fees
A natural question is whether you can roll the commission into your mortgage. As of 2026, no. Fannie Mae, Freddie Mac, and FHA all prohibit adding buyer agent commissions to the loan balance. The fee has to come from your own funds, from seller contributions, or from other non-loan sources. That directly increases the cash you bring to closing.
VA loans work differently. VA regulations historically prohibited veterans from paying real estate brokerage charges. After the NAR settlement disrupted the old commission flow, the VA issued a temporary variance allowing veterans to pay reasonable buyer-broker fees subject to conditions: the charges cannot be included in the loan amount, and the veteran must have sufficient liquid assets to cover them at closing. The variance stays in effect until the VA formally rescinds it. When a seller pays the veteran’s buyer-broker charges, the VA does not count that payment as a seller concession, which preserves the buyer’s concession allowance for other closing costs.4Veterans Benefits Administration. Circular 26-24-14 Temporary Local Variance for Certain Buyer-Broker Charges
Brokerage and Administrative Fees on Top
Beyond the agent’s commission, many brokerages charge a separate administrative or transaction fee. These flat charges cover the brokerage’s overhead: document storage, compliance review, file processing. They typically run $200 to $600 and appear as a line item on your closing disclosure. The fee is the same whether the house is $200,000 or $900,000.
These fees are often non-negotiable, though asking costs nothing. They’re paid at closing alongside your other costs and are separate from third-party expenses like inspections, appraisals, and title insurance. Review your buyer representation agreement and brokerage paperwork early so the exact number isn’t a surprise on closing day.
How the Commission Affects Your Taxes Later
Paying a buyer’s agent commission generally increases your home’s tax basis. A higher basis means less taxable gain when you sell. Buy a home for $400,000 and pay $10,000 in buyer agent commission, and your adjusted basis starts at $410,000. Sell later for $600,000 and your gain is $190,000 instead of $200,000. The IRS allows costs owed by the seller that you agree to pay, including sales commissions, to be added to your basis.5Internal Revenue Service. Publication 523 – Selling Your Home Most homeowners won’t owe capital gains at all thanks to the $250,000 exclusion ($500,000 for married couples filing jointly), but in high-appreciation markets or on investment properties, the basis adjustment matters.