When you’re buying or selling a home, understanding how real estate commissions work is essential—especially when it comes to who pays buyer agent commission. For homeowners listing their property or buyers preparing to make an offer, commission fees can feel like an invisible cost with hefty impact. With shifts in market dynamics and evolving real estate practices, it’s more important than ever to grasp where these fees originate, what influences them, and how they impact both parties in the transaction.
In the traditional U.S. real estate model, seller agents and buyer agents typically split a commission, paid from the final sale proceeds. But that simple explanation conceals a more complex, negotiable structure that’s becoming increasingly important for consumers to understand. Sellers often wonder whether they can negotiate commissions to save money, while buyers consider whether they’re financially accountable for their agent’s services. All of these questions ultimately come back to one: who pays buyer agent commission—and why?
Understanding the Traditional Commission Model
For decades, the standard commission setup remained fairly consistent. A seller, when listing a home, typically agrees to pay a commission to their listing agent. This agreement often includes a preset percentage allocated to the buyer’s agent as a cooperative offer. While this practice gives agents incentive to bring qualified buyers, the actual cost structure can surprise sellers and buyers alike.
Typically, total commissions range from five to six percent of the sale price. These fees are deducted from the seller’s proceeds at closing. For example, if a home sells for $400,000 with a six percent commission, $24,000 is divided between the seller’s agent and the buyer’s agent. So while the seller is technically paying the buyer agent commission, the cost is baked into the listing price, which the buyer ultimately finances through their purchase.
This system has advantages. It simplifies the buyer’s transaction and broadens access for agent representation. However, it also raises questions about whether buyers should have a say in compensating the person working exclusively for them—especially when agent loyalty and negotiation are pivotal to a smooth purchase.
As consumer awareness grows and technology offers more transparency, scrutiny around these old models continues to intensify. Buyers and sellers are asking whether the traditional commission split still makes sense in every deal.
Can Buyers Pay Their Agent Directly?
In some cases, buyers can—and do—pay their own agent commissions. This change often arises in real estate markets where listing agreements don’t include compensation for buyer brokers or in transactions where buyers work with agents offering flat fee or hourly services. In these situations, the question of who pays buyer agent commission shifts directly to the buyer’s wallet.
For buyers, paying your agent directly may provide more control and clarity. You know precisely what services you’re paying for, enabling you to evaluate the value added by your representative. Some first-time buyers find this approach intimidating, but others prefer the straightforward dynamic of hiring an agent like you’d hire an attorney or financial advisor. Companies like Consumer Financial Protection Bureau have advocated for more transparency in homebuying costs, potentially making such payment structures more commonplace.
However, paying a buyer agent separately requires upfront planning. Buyers must factor agent fees into their overall budget and may find the additional line-item cost harder to manage when already strained by down payments and closing costs. Importantly, many lenders do not allow buyer-paid commissions to be financed as part of a loan, further complicating affordability.
In competitive markets, direct payment might also reduce a buyer’s flexibility. If a seller is offering to pay a buyer’s agent, turning down that offer—even with good intentions—could hinder a buyer’s bargaining power or increase their personal expenses unnecessarily.
How Commission Negotiation Impacts Both Parties
Whether you are buying or selling, understanding the ability to negotiate commissions can lead to meaningful savings. Sellers often don’t realize that commission percentages, including what gets offered to buyer brokers, are fully negotiable. You’re not locked into standard rates, and you can tailor terms to better align with your property’s value and your financial goals.
Negotiating who pays buyer agent commission becomes particularly relevant in transactions where high equity or a hot market places sellers in a stronger position. For instance, a seller may offer a lower buyer broker commission if inventory is low and demand is high. Alternatively, in more balanced markets, sellers may offer higher commissions to attract more buyer traffic via agent networks managed through services like the MLS.
Buyers can also play an active role. By reviewing the terms of agent agreements before initiating a home search, buyers can clarify how their agent expects to be compensated. In situations where a seller offers no commission to buyer agents, make sure to discuss whether your agent will expect you to cover the gap. The Nolo legal resource site provides guides that break down what buyers should consider when signing broker agreements, including disclosure requirements and negotiating flexibility.
In either scenario, clear communication and upfront agreements can prevent costly misunderstandings later. Whether you find a for-sale-by-owner home, select an alternative service model, or go the traditional route, knowing the mechanics behind commission payments empowers you to make smarter moves.
Recent Legal and Market Challenges
Over the last several years, legal and policy changes have started to reshape how real estate commissions are handled. Several class-action lawsuits have challenged how major real estate brokerages require sellers to offer specific commissions to buyer agents through MLS listings. These legal shifts bring renewed attention to the question of who pays buyer agent commission and whether it should remain the seller’s responsibility.
Regulatory bodies are watching. The Federal Housing Finance Agency (FHFA) has monitored the ripple effects that buyer-broker fee models have on housing affordability, especially for first-time and low-income buyers. These efforts are part of a larger trend toward improving access while refining how real estate professionals demonstrate their value.
At the same time, advances in digital tools are enabling more buyers and sellers to work independently or with streamlined services. These platforms disrupt the old commission model by allowing people to list homes without bundled agent services, aligning the cost of assistance with actual deliverables instead of tradition.
Looking ahead, we’re likely to see even more flexible compensation structures. These will empower buyers and sellers to assess whether agent involvement justifies the fee—and to distribute costs more fairly depending on who benefits most.
Smart Home Sales and Purchases Start with Beycome
Whether you’re listing your home or searching for the perfect place to settle down, knowing who pays buyer agent commission can help you prioritize your finances. Instead of relying on outdated models and undisclosed costs, you can empower yourself with clear, transparent alternatives from Beycome. Our platform was built to shift control back to homeowners and buyers—providing the tools and tech-driven support needed to navigate real estate with confidence.
With over 18,000 homes closed and more than $213 million saved in agent commissions, Beycome continues to redefine how real estate works. Our average customer saves $13,185, a meaningful margin when planning for your next chapter. And every 30 minutes, another Beycome home sells—one more example of how streamlined solutions can outperform slow, commission-heavy transactions.
Ready to take control? Homeowners can explore our flat fee MLS services to get on the market without the padded expenses. If you’re a buyer aiming to get the most from your budget, our buying tools are tailored to deliver the support you need without overpaying for it. Want to set realistic pricing before listing? Try our property value calculator to gain an edge from day one.
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