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Working with an agent

Buyer agent commission: how it is set and who pays

Since August 2024, buyers who work with a REALTOR agree on their agent's pay in writing before touring. That turns commission from something that happened in the background into a number you negotiate and plan for.

Reviewed November 2026 · Written for Buy Home Tips from the sources listed below

Buyer agent compensation is the payment your agent receives for helping you buy. Under the practice changes NAR describes, effective August 17, 2024, a buyer working with a REALTOR signs a written agreement before touring that spells out this payment. The amount is negotiable between you and the agent.

What the buyer may owe, $340,000 purchase, 2.5% agreementAgreed compensation$8,500Seller pays in this example$6,800Left for the buyer$1,700
What the buyer may owe, $340,000 purchase, 2.5% agreement. Worked example from this guide; amounts are negotiable

Four required compensation terms

NAR says the buyer agreement must include:

  1. A specific and conspicuous disclosure of the amount or rate of compensation, or how it will be determined
  2. Objective compensation, such as $0, a flat fee, a percentage or an hourly rate, not an open-ended term like "whatever the seller offers"
  3. A cap: the agent cannot receive compensation for brokerage services from any source above the amount in the agreement
  4. A statement that broker fees and commissions are fully negotiable and not set by law

Common structures

  • Percentage of price. Simple, but the fee rises with the price, not with the work.
  • Flat fee. Predictable. Ask what services it covers and whether it changes if the search drags on.
  • Hourly. Useful if you need limited help, such as contract review for a home you already found.
  • Tiered or capped. A percentage with a maximum, or a lower rate above a set price.

Compare structures at the price you expect to pay, and ask what happens if you buy a much cheaper or more expensive home than planned.

Who actually pays

Your agreement says what your agent is owed. Payment can come from:

  • The seller, if they agree to pay your agent's compensation, often negotiated in your offer
  • Seller concessions, credits toward your closing costs, which you can still request
  • You, for any part not covered by the seller

Offers of compensation from sellers can no longer appear on the MLS, so your agent will ask the listing side directly or you will request it in your offer.

Negotiating the agreement

  • Ask for the compensation as a flat fee or a capped percentage if you expect a higher price.
  • Ask for a shorter term, such as 60 or 90 days, with a clear way to end the agreement.
  • Ask whether the agent will reduce the fee if you find the home yourself or buy from someone you know.
  • Get the services in writing: showings, comparable sales, negotiation, deadline tracking.

Where it shows up at closing

Commissions and other real estate fees appear on your Closing Disclosure. Review it at least three business days before closing and compare it with your agreement and your contract. If the numbers do not match, ask before you sign.

Mini calculator: what your buyer agent would be paid

Buyer agreements now must state compensation in a way you can calculate. Convert a percentage or flat fee into dollars at your price range.

Enter your figures to see the result. Nothing you type leaves this page.

Compensation is negotiable and not set by law. The agreement you sign controls.

Before you sign a buyer agreement

  • Read the compensation term and make sure it is a specific amount or rate.
  • Ask what happens if the seller pays some or all of it.
  • Check the agreement's length and how either side can end it.
  • Ask whether it covers all homes or only certain areas or types.
  • Confirm the statement that fees are fully negotiable and not set by law.
  • Ask your lender how any compensation you pay affects your cash to close.

Questions buyers ask

How much is a buyer agent commission?

There is no standard amount. NAR says compensation is fully negotiable and not set by law. Agreements can use a flat fee, a percentage, an hourly rate or even $0, but must state an objective amount.

Does the seller still pay the buyer's agent?

The seller may agree to pay your agent, and you can request it in your offer. Offers of compensation cannot be shared on the MLS, so ask your agent how to raise it with the listing side.

What if the seller pays less than my agreement says?

Your agreement determines what your agent is owed. Any amount not paid by the seller may be your responsibility, depending on the agreement terms. Negotiate the agreement and your offer with that in mind.

Can my agent be paid more than our agreement?

No. NAR's practice changes require a term prohibiting the agent from receiving compensation from any source that exceeds the amount in your agreement.

Sources checked for this page

Checked November 2026. Programs and limits change; confirm with the source before you rely on a figure.

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