Buyers usually don't pay realtor fees in a real estate transaction. Instead, sellers cover the buyer's agent commission.
Nationwide, the average cost of a buyer's agent is 2.75% of a home's sale price.[1]
The buyer's agent fee is typically included in the overall expenses of selling a home and gets subtracted from the home's final sale price during closing.
The practice of sellers paying the buyer's agent fee originated from the National Association of Realtors (NAR) Participation Agreement, which required listing brokers to offer compensation to buyer brokers. Recent changes have made these commissions negotiable between buyers and their agents.[2][3] However, sellers are still paying buyer's agent commissions in many instances.
If you're a buyer and you haven't found an agent already, we can connect you to the top agents in your area. Just answer five short questions, and you'll get vetted agent recommendations sent to your inbox. When you work with one of our agents, you can get cash back at closing to put toward moving costs or other expenses.
If you're a seller and you want to save on realtor fees, you can find top local agents who charge a 1.5% listing fee instead of the usual 3%. On a $400,000 home sale, that lower rate saves you $6,000!
What do buyer real estate agent fees cover?
The fee for the buyer's agent covers services such as:
- Walking the buyer through the process of purchasing a home and securing financing
- Helping the buyer locate a home using the multiple listing service (MLS) — which is a key method for finding homes, since 86% of sellers market their homes via the MLS[4]
- Scheduling showing times with listing agents and sellers and showing the buyer homes
- Analyzing comparable properties to determine the fair market value of a home, which guides the buyer's offer price
- Negotiating with the listing agent and seller
- Writing the contract and processing all of the paperwork
How much is the buyer's agent fee?
The national average buyer's agent fee is 2.75% of the home's sale price. For a $400,000 home, a 2.5% buyer's agent commission is $10,000.
However, the commission rate can vary by three percentage points depending on the state you're purchasing in.
The average buyer's agent commission is slightly lower than the average listing agent commission, which is 2.82%.
Sellers typically pay both fees, for a total commission rate of 5.57%. Over 70% of sellers nationwide report paying 5% or more of the sale price.[5]
» Find average commission rates in your area.
Why do sellers pay the buyer's agent (and should they)?
For years, it's been standard for the seller to pay commissions to both their agent and the buyer's agent. This is largely because the National Association of Realtors (NAR) required listing agents to offer buyer's agent compensation when posting homes on the MLS.
However, this policy has faced growing debate and scrutiny, with critics arguing that it unfairly burdens sellers and creates a potential conflict of interest.[6]
A 2024 lawsuit changed how the buyer's agent fee is determined
After losing a lawsuit over their practices in 2024, the National Association of Realtors agreed to change how real estate professionals do business.
As of August 2024, buyer's agents are required to sign an "agency agreement" before providing services to a buyer. This agreement has to specify what services the agent will provide, and how much they will get paid.
Real estate agents are no longer allowed to split commissions with one another. In the past, it was common for a listing agent to collect a 6% fee from the seller, and then split this fee with a buyer's agent who brought a buyer. Going forward, buyer's agents will have to negotiate their fee directly with the buyer they represent.
Learn more about how the real estate commission changes will impact buyers and sellers.
Remember: Realtor fees are negotiable!
Buyer's agent fee
Sellers no longer advertise the buyer's agent fee upfront as part of their property listings.
Instead, the fee may be discussed when the buyer makes an offer. At this point, the buyer's agent may ask the listing agent if the seller is offering a buyer's agent commission as a concession.
The buyer's agent fee isn't set in stone, and the amount can be one of many details hashed out during negotiations.
Listing agent fee
As a seller, you can negotiate the listing agent fee before you sign a contract (known as a listing agreement) authorizing an agent to represent you during the home sale.
The typical 2.5–3% listing agent fee isn't mandatory. It's possible to negotiate a lower commission rate.
But let's be real: Negotiating isn't easy. One industry study found that just 19% of sellers brought up the topic with their agent and successfully negotiated a reduced commission or fee.[7]
That's where Clever Real Estate steps in. With us, no haggling is needed. We've done the hard work for you, securing great commission rates with top agents. Sell your home with Clever, and you'll get a listing fee of just 1.5%.
💰 Secure a 1.5% listing fee without the hassle of negotiating.
Other big expenses for home buyers
| $400,000 home purchase example | |
|---|---|
| Down payment (15%) | $60,000 |
| Earnest money (2%) | $8,000 |
| Closing costs (3%) | $12,000 |
| Total costs | $80,000 |
Proponents of sellers covering buyer's agent fees argue that buyers already face big expenses. Here's a breakdown of the major costs involved.
Down payment
The most significant upfront cost for buyers is the down payment, which can vary widely. It typically falls between 3% and 20% of the home's purchase price.
As of February 2025, the median down payment is about $55,500, which is around 15% of the median sales price of $374,000.[8]
Making a down payment of less than 20% often requires private mortgage insurance (PMI), though there are ways to avoid PMI on a mortgage.
Earnest money
Buyers usually provide earnest money before the closing date, which generally amounts to 1–5% of the home's price. A $400,000 house can have earnest money of $4,000–12,000 or more.
Earnest money functions more like a deposit. And if the transaction successfully concludes, it gets applied to the buyer's purchase. It serves as a sign of the buyer's commitment to the seller, indicating their serious intent to purchase the property.
Closing costs
Buyers have closing costs that typically include appraisal, inspection, loan underwriting, and attorney fees. These costs can vary depending on the location, loan type, and interest rate.
As a general guideline, buyers should set aside 2–5% of the purchase price to account for closing costs. On a $400,000 property, the closing costs can range from $8,000 to $20,000.
Buyer closing costs: How to reduce the burden
There are several strategies to make buying closing costs more manageable.
- Negotiate with the seller. It's common in real estate transactions for sellers to agree to contribute toward some or all closing costs, although this may vary by market and be less common in a market favoring sellers. This can significantly reduce the upfront costs required by the buyer.
- Roll closing costs into the loan. Buyers can often choose to include the closing costs in a mortgage loan. For instance, if you purchase a $250,000 home with $7,500 in closing costs, you can request a loan approval for $257,500 to cover both the home purchase and closing costs.
- Get a home buyer rebate. Some companies offer home buyer rebates, providing cash back at closing. These rebates can be a percentage of the home's final sale price or a flat rate. For example, Clever Real Estate matches you with local buyer's agents, and eligible buyers can qualify for cash back after closing.
