Understanding How Buyer’s Agents Get Paid

When entering the real estate market, many buyers wonder if they are responsible for paying their agent’s commission. Historically, it’s been common for sellers to cover both the buyer’s and seller’s agent commissions. However, recent changes in the real estate industry—especially following the NAR settlement—have shifted this dynamic. Now, buyers must agree to their agent’s fee in writing before starting their home tours, and it’s becoming more common for the buyer’s agent fee to be negotiated as part of the offer. Understanding these changes is essential for navigating today’s real estate landscape.

Here’s a breakdown of how buyer’s agents get paid and what buyers can expect in the current market.

Understanding how buyer’s agents get paid in today’s market

How Does a Buyer’s Agent Get Paid?

Traditionally, sellers have paid the commissions for both the listing agent and the buyer’s agent. However, as of August 17, 2024, buyers must agree to their agent’s fee upfront before touring homes. This shift makes it increasingly common for buyers and sellers to negotiate who will cover the buyer’s agent fee as part of the offer. While buyers can still request the seller cover this cost, it is no longer guaranteed. Ultimately, the decision will depend on negotiations between the buyer’s and seller’s representatives.

How Does Redfin Handle Commissions?

At Redfin, we believe in providing buyers with the best possible deal. While our fees vary by market, they are always competitive to ensure they can make a significant impact on securing your ideal property.

Our Sign & Save program offers additional savings for buyers who choose to hire us after the first tour. If you decide to hire us before your second tour, we’ll reduce our fee by 0.25%. We focus on providing exceptional service and value, earning your business by helping you achieve your home-buying goals.

Can Buyers Be Asked to Pay Their Agent’s Commission?

Yes, it’s possible for buyers to be asked to pay their agent’s commission—either partially or in full. With recent industry changes, buyer’s agent commissions are now more negotiable than ever. Although buyers can still ask the seller to cover the fee, it’s no longer a guarantee, and whether the seller agrees to cover this cost will depend on the terms of the negotiations.

What Should Buyers Expect?

Buyers should be prepared for the possibility that agent commissions will become a point of negotiation. While some sellers may still cover the buyer’s agent commission to stay competitive, it’s no longer a certainty. Each transaction will vary, so staying flexible and discussing these details with your agent is important. Working with a knowledgeable real estate agent can ensure you get the best possible outcome and value when purchasing your home.