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 is subtracted from the home's final sale price during closing.
The practice of sellers paying the buyer's agent fee originated from a past National Association of Realtors (NAR) policy, which required listing brokers to offer compensation to buyer brokers. Now, this commission must be set by buyers and their agents.[2][3]
However, sellers are still paying the buyer's agent commission in most instances to widen the pool of buyers who can afford the home.
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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 88% 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 average 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]
Why do sellers pay the buyer's agent (and should they)?
Most sellers cover the buyer's agent fee because it helps attract more buyers and increases the odds of a higher sale price. If buyers know they must pay their agent out of pocket, many may choose not to tour the home or may lower their offer to offset that cost, ultimately hurting the seller’s bottom line.
For years, it’s been standard for sellers to cover commissions for both their listing agent and the buyer’s agent. This practice stemmed from a now-eliminated NAR policy that required listing agents to advertise buyer's agent compensation on the MLS.
That rule was struck down after the 2024 lawsuit with the National Association of Realtors (NAR), which aimed to unburden sellers from having to pay the buyer’s agent commission.[6] But in practice, not much has actually changed besides logistics.
Now, buyer’s agents must sign a buyer agency agreement with their clients before the agent shows homes. The contract clearly outlines the services the agent will provide and the amount they will be paid. Technically, the buyer's agent fee is the responsibility of the buyer. But sellers are still covering it — now via a concession at closing instead of offering it upfront.
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.
However, 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] It's easier to get a better rate from a low-commission company that guarantees up to half off the traditional listing fee.
Other big expenses for home buyers
Here's an example of expenses for a $400,000 home purchase.
| 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 buyer 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. Find top-rated buyer's agents in your area, and get cash back.
Clever’s free service connects you with a top local agent so you can:
✅ Find a home that fits your budget
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