The short answer is no: If agreed upon in the contract, sellers must pay the real estate commission of a buyer's agent, which averages 2.58% nationwide.
The National Association of Realtors (NAR) previously mandated that brokers on Realtor-affiliated MLS platforms must offer compensation to buyer's agents.[1] Since over 86% of homes sell via the MLS, this practice was widespread.[2]
However, following the recent NAR settlement, the buyer's agent fee is now negotiable between buyers and their agents.[3] Sellers may no longer be obligated to offer or pay this fee, but many still provide it to remain competitive. In some cases, if the buyer is unrepresented or agrees to cover the fee through negotiations, the seller may avoid this cost altogether.
Sellers still have options to reduce costs and maximize savings, even if they end up needing to cover the buyer's agent commission to close on a deal.
Clever Real Estate offers an innovative solution by reducing sellers' commission rates. At a rate of 1.5% — significantly lower than the nationwide average of 2.74% — Clever helps sellers save without compromising on the quality of service.
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Can a seller refuse to pay commissions?
In most cases, sellers can't refuse to pay a buyer's agent if it's agreed upon in a contract.
If you've committed to paying the buyer's agent fee in a document like a signed purchase and sale agreement, you're legally bound to fulfill this obligation. Refusing to do so could lead to contract breaches and potential lawsuits.
For example, in South Carolina, sellers previously indicated the compensation for the buyer's agency in the contract under "3. Compensation to Other Brokerages." This section outlined the seller's obligation to pay the buyer's agent.
In new contracts following the NAR settlement, a field allows sellers to cover a specific dollar amount of the buyer's transaction costs, including agent commission:
If your contract doesn’t specify a commitment to paying the buyer’s agent commission — for instance, if the relevant fields are left blank or marked as 0% — you may avoid paying this fee altogether.
However, refusing to negotiate and pay a buyer’s agent commission could impact your home’s chances of selling. To navigate these changes effectively, consult a local real estate agent or attorney for advice.
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Realtor commission changes are here!
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.
Do I have to pay buyer agent commission on a FSBO sale?
If you sell your house without a realtor, you won't need to pay a listing agent commission. But, if your buyer has an agent (which is highly likely), you may be responsible for the buyer's agent commission.
This fee is for the buyer's agent's service in bringing the buyer to your property, effectively aiding both the buyer and seller. The commission typically ranges from 2-3% of the home's sale price, with a national average of 2.66%.[4]
Some exceptions do exist. If the buyer is unrepresented, you might bypass agent fees, working directly with real estate attorneys and title companies.
Another rare scenario is where the buyer opts to pay their agent's commission to make their offer more attractive. This could happen in a strong seller's market with limited inventory and numerous buyers.
Yes, most do. In 2023, 89% of home buyers employed a real estate agent or broker for their purchase, up from 86% in the previous year. Meanwhile, only 6% of home buyers acquired their homes directly from the previous owner.[5]
Who pays realtor commissions?
The seller typically pays real estate agent's commissions, a standard practice for many years.
For instance, on a $500,000 home sale with a 6% total commission, the seller pays $30,000, usually divided equally between the listing and buyer's agents.
Do buyers ever pay?
Historically, buyers rarely pay their agents out of pocket. Typically, the seller pays the agent's fee, deducted from the home's sale price. However, exceptions exist.
Most buyer's agency agreements include a clause to ensure the agent gets paid, even if the seller doesn't pay. For example, in North Carolina, a buyer's agency agreement may state that the buyer must pay the difference if the seller's compensation is lower than the agent's standard fee or if no compensation is offered.
While buyers are usually not directly responsible for these payments, they might be asked to cover the fee if the agent can't obtain it from the seller. This scenario is more of an exception than a rule in real estate transactions.
