Updated October 2026. What sellers find out about commission only at the closing table: who pays whom, what the listing agreement locks in, and what changed after the NAR settlement. Sources were read on October 28, 2026.
As of October 2026, there is no standard real estate commission. NAR’s own settlement page says agent pay “remains fully negotiable,” and since August 17, 2024, offers to buyer agents can’t be shown on the MLS. On a $400,000 sale, each 1% you agree to is $4,000 out of your proceeds, so the fine print matters more than the headline rate.
Jump to: 🤝 Who pays · 🪜 Fine print · 💲 Where it goes · ⏱️ After 2024 · 🏠 Your options · ❓ FAQ
Key takeaways
- Commission is negotiated, not set by law or by NAR. Every 1% on a $400,000 home is $4,000.
- Since August 17, 2024, a seller can still offer to pay a buyer’s agent, but the offer can’t appear on the MLS.
- Read the protection period and the cancellation clause before you sign. That’s where most surprises hide.
- IRS Publication 523 lists sales commissions as a selling expense, which lowers the gain you report.
Commission feels abstract for months. Then it shows up as one line on the settlement statement, and it’s often the biggest check anyone writes at closing besides the loan payoff. These are the realities that tend to catch sellers off guard. If you only want the math, our real estate commission calculator guide walks through it step by step. This page is about the rules around the number.
Who actually pays the commission?
In most sales, the seller does. The listing agreement you sign says what you’ll pay your own broker. It’s paid out of your proceeds at closing, so you never write a separate check. The title or escrow company sends the money to the brokerage, and the brokerage then pays the agent.
The buyer side is where things changed. Under the NAR settlement, a buyer working with an agent now signs a written agreement that spells out what that agent gets paid. You, as the seller, can still choose to cover some or all of it. You can also offer a concession, like help with the buyer’s closing costs, and NAR says that kind of concession can still appear on the MLS. Our guide on who pays real estate commission and how it works goes deeper on the money flow.
One thing hasn’t changed. When one agent represents both sides, which some states allow as dual or transaction brokerage, the commission may shrink, but the agent can’t fully advocate for either side. Ask how your state handles it before you agree to it.
What does the listing agreement fine print really say?
This is the reality the old version of this page warned about, and it still holds. Three clauses decide what you owe, more than the percentage does.
The protection period
Many listing agreements include a protection or “tail” period. If your listing expires and you later sell to a buyer who saw the home during the listing, you can still owe the commission. See what you owe if the house doesn’t sell. Thirty, 90 or 180 days are all common. Ask for the shortest one you can get, and ask for a written list of the buyers it covers.
Cancellation and termination fees
Some agreements let you cancel anytime. Others charge a fee, or require you to pay marketing costs if you leave early. If you think you might change your mind, negotiate this before signing, not after. Our breakdown of the exclusive right to sell listing agreement shows where these clauses usually sit.
What triggers payment
Read the line that says when the fee is earned. In a traditional listing it’s usually earned at closing. Our guide on when realtor commission is paid covers failed deals and canceled listings. In a flat fee listing it’s usually earned up front, when the home goes on the MLS. Neither is wrong. They’re just different deals, and you should know which one you have.
Where does the money go after closing?
The agent rarely keeps all of it. The fee is paid to the brokerage, which takes its share under the agent’s commission split. Newer agents often keep less, and experienced agents more. Out of their share, agents usually pay their own marketing, licensing, MLS dues and insurance. That’s part of why some agents will negotiate and some won’t.
| Example on a $400,000 sale | Amount |
|---|---|
| Listing broker fee at 2.5% (example) | $10,000 |
| Buyer-agent pay at 2.5%, if the seller agrees to cover it (example) | $10,000 |
| Total if both are paid by the seller | $20,000 |
| Flat fee MLS listing instead of the listing fee (Beycome Basic) | $99 |
These figures are examples only. Commissions aren’t set by law or by NAR rules, and they’re fully negotiable. Sellers choose whether to offer any buyer-agent compensation, and how much. Since August 17, 2024, those offers can’t be shown on the MLS.
There’s a tax reality too. IRS Publication 523 lists sales commissions, such as payment to the seller’s real estate agent, among the selling expenses you subtract when you figure your gain. It doesn’t make the fee smaller, but it can lower the taxable gain if you’re above the home sale exclusion. We work through the math in is realtor commission tax deductible?
What changed after August 2024, and what didn’t?
NAR’s page for home sellers lays out the changes plainly. You still have the choice of offering compensation to buyer brokers. Your agent just can’t put that offer on the MLS. They can still share it off the MLS, through flyers, social media or a website. And your own agent’s pay “remains fully negotiable.”
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List your home on the MLS from $99
A flat fee instead of a percentage, and $0 to Beycome at closing. You stay in control of your sale.
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Get up to 2% back at closing
On homes listed by other agents, Beycome credits you up to 2% of the price at closing (1% kept, $1,499 minimum; not on FSBO homes or homes listed by Beycome sellers).
Buy a home →What didn’t change is how much homework the seller has to do. A lower rate on paper can come with a long protection period. A higher rate can come with more services. Compare what’s included, not just the percentage. Our state-by-state look at what a commission costs in every state helps you check whether a quote is in line with your area.
The settlement also put the buyer conversation in writing. Buyers now agree to their agent’s pay before touring homes. So when an offer arrives with a request for you to cover the buyer agent, you’ll see the number in black and white, and you can say yes, no, or meet in the middle.
What are your options if the numbers don’t work?
There’s no single right answer. Some sellers want an agent for everything and are happy to pay for it. Others handle showings and offers themselves. Most land somewhere in between. Here’s how the main paths compare.
- Full-service agent: pricing, marketing, showings and negotiation are handled for you, for a negotiated percentage.
- Flat fee MLS listing: your home goes on the local MLS for a fixed fee, and you handle showings and offers.
- Full support for a flat fee: experts run the sale with you while you keep every decision.
- For sale by owner with no MLS: lowest cost, but far fewer buyers see the home.
Beycome sits in the middle two. Flat fee MLS listings are Basic $99 and Enhanced $399, with $0 at closing. If you want a person in your corner, Concierge is $1,399. Your Concierge experts negotiate and handle the paperwork, and you stay in control of every decision. Support is 7 days a week, Artur AI 24/7.
If you live in South Florida, our Miami listings page shows what selling your home in Miami with a flat fee looks like. For marketing on your own, see our tips for eye-catching FSBO marketing graphics and the technology trends for sellers worth knowing.
Buying your next home at the same time? The Beycome buyer program is open to every buyer on homes listed by other agents (the commission credit can’t apply where no buyer-agent commission is offered, like most FSBO homes, or on homes listed by Beycome sellers). There’s no upfront fee. Beycome keeps 1% of the price, minimum $1,499, and credits the rest of the buyer-agent commission at closing, with lender approval. On a $400,000 home with 3% offered, that’s $8,000 back.
Other reads people find useful at this stage: what to do if you bought a home that still needs fixes, and, if you’re renting in between, your rights and responsibilities in rental apartments.
Real estate commission questions people ask
Is real estate commission set by law?
No. Commission isn’t set by law or by NAR rules. NAR’s seller page says agent compensation remains fully negotiable.
Does the seller still pay the buyer’s agent?
Only if the seller chooses to. Buyers now sign a written agreement with their agent. A seller can offer to cover some or all of it, but that offer can’t appear on the MLS since August 17, 2024.
Can I owe commission after my listing expires?
Yes, if your agreement has a protection period and you sell to a buyer covered by it. Ask for a short period and a written list of covered buyers.
Is real estate commission tax deductible?
Not as a deduction on your income, but IRS Publication 523 counts sales commissions as a selling expense. That lowers the gain you figure on the sale.
How much is a 1% commission on a $400,000 home?
$4,000. That’s an example only; rates are negotiable and vary by agent and market.
Do I need a realtor to sell my house?
No, it’s not required; it’s your choice. An agent handles pricing, marketing and negotiation for a fee. You can also list on the MLS for a flat fee and handle those steps yourself.
Commission figures on this page are examples only. Commissions are not set by law or NAR rules and are fully negotiable. Sellers choose whether to offer buyer-agent compensation, and how much; since August 17, 2024, such offers can’t be shown on the MLS.
Beycome prices as of October 2026. “$0 at closing” means no Beycome fee at closing; other closing costs, taxes and any buyer-agent compensation you agree to still apply. Concierge is $1,399 and Basic is $129 in California and Illinois. Buyer credit: minimum $1,499, lender approval required, not on FSBO homes or homes listed by Beycome sellers. General information, not legal or tax advice; rules vary by state and MLS.
Sources
- NAR, Home Sellers: Here’s What the NAR Settlement Means for You, read October 28, 2026.
- IRS, Publication 523, Selling Your Home, read October 28, 2026.
- Beycome, listing package features, October 2026.
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