Who Pays Real Estate Fees?

You may have heard homeowners often pay realtor fees, but the reality is a little more nuanced. Realtor costs have an impact on the buyer’s budget as well, even if sellers pay commissions from the revenues of their sales.

Realtor commissions are typically included in the purchase price of a house. Agent commissions are subtracted from the total revenues when the transaction is completed. Your agent receives payment this way, and no one pays out of pocket.

Agent commissions are not rigidly written in stone, though, like many other aspects of real estate. Depending on the sort of house you buy or the contracts you sign, who pays realtor fees may change.

Does the seller pay the buyer’s realtor fees for what reasons?

Although it may sound weird, sellers include the buyer’s agent fee in the transaction price since everyone wins. Commissions paid to buyer’s agents have traditionally been a seller’s marketing expense. Before the internet, purchasers mostly turned to their brokers to identify properties for sale. The buyers’ agent commission was something sellers knew would encourage to bring them ready and eager purchasers.

Realtors typically demand customers to be prequalified before they start looking for properties in addition to marketing. In this way, sellers essentially pay a commission for the added assurance that the deal won’t go through owing to financing issues.

Since lenders often don’t assist buyers with their closing fees, buyers are already responsible for their down payment and other expenditures. The buyer’s agent fee can be rolled into their mortgage and used as closing costs if it is baked into the transaction price.

Do purchasers ever foot the bill for agents’ services?

Although it’s uncommon, purchasers occasionally pay their agent’s fee out of pocket. According to the National Association of Realtors, 16% of purchases resulted in purchasers footing a portion or the entire bill for their agent’s commission, even though 77% of sellers paid realtor fees in 2020.

If the seller doesn’t mention offering an agency in their ad, you, the buyer, will probably be responsible for paying your agent.

A buyer’s agent commission is often offered with the least frequency for sale by owner (FSBO) sellers. Or they can provide a commission rate that pays a portion of your agent’s fee but not all. For instance, if the seller doesn’t pay a commission, an exclusive agency agreement may stipulate that you are responsible for your agent’s fee.

How to proceed if the seller refuses to cover your realtor’s charge

Speak to your agent if you want to buy a house, but the seller isn’t paying a buyer’s agent commission. Even if you cannot pay the whole commission charge upfront, most brokers will work with you to find a solution so that you may purchase your ideal property. Real estate brokers are skilled negotiators and will come up with ideas that will benefit both the seller and you.

What are the realtor’s fees?

Depending on the agent and the area, real estate commission rates can range from 5% to 6% of the sales price of a house. Less seasoned agents can charge lower commission costs, whereas seasoned agents occasionally charge higher commission fees. The seller’s agent, often known as the listing agent, and the buyer’s agent normally divide the total commission 50/50. (Dual agents, who stand in for both the buyer and the seller, would receive the whole commission. But not many states permit dual agency.)


In a nutshell, purchasers do not pay realtor commissions. The good news is that you don’t have to worry about saving more money for a real estate agent if you’re a buyer because you’re probably already saving for a down payment and closing expenses.

It’s crucial to keep in mind that real estate commission is often figured into the price of the house, so the sale price may be somewhat increased to reflect the agent charge. Therefore, even if a buyer doesn’t directly pay their agent, they still receive compensation when they acquire a house.

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