Who Pays Realtor Fees? What Sellers and Buyers Actually Owe in 2026

I get this question at least three times a week. Someone’s getting ready to sell their house, they’ve heard the number 6%, and they want to know: who actually pays the realtor fees?

The short answer used to be simple. The seller paid both agents — theirs and the buyer’s. But after the NAR settlement in 2024, things shifted. And if you’re buying or selling a home in 2026, what you owe (and to whom) depends on choices that didn’t exist two years ago.

I’ve been in real estate long enough to watch this whole thing unfold. Let me walk you through what’s actually happening right now — not the outdated advice you’ll find in most articles on this topic.

The Old Model: Sellers Paid Everything

For decades, the standard setup worked like this. A seller hired a listing agent and agreed to pay a total commission — usually 5% to 6% of the sale price. That commission got split between the listing agent and the buyer’s agent, typically 50/50.

On a $400,000 home, that’s $24,000 at 6%. The seller wrote one check, and each agent’s brokerage took their cut.

Buyers loved this arrangement because their agent’s services appeared “free.” Sellers tolerated it because it was just how things worked. But here’s what always bugged me about that setup: the seller had zero say in how much the buyer’s agent got paid. You were essentially paying the salary of someone who was negotiating against you.

What Changed After the NAR Settlement

In 2024, the National Association of Realtors settled a series of lawsuits for $418 million. The core issue? Sellers were being forced to pay buyer agent commissions through MLS rules, and buyers had no idea what their agents actually cost.

The settlement changed two big things:

First, listing agents can no longer advertise buyer agent commission rates on the MLS. That blanket offer of “I’ll pay your agent 2.5-3%” is gone from the listing data.

Second, buyers now have to sign a written agreement with their agent before touring homes. That agreement spells out exactly what the buyer’s agent will charge.

So who pays realtor fees now? It depends on the deal.

Who Pays the Listing Agent

This part hasn’t changed. The seller pays their own listing agent. You hire them, you sign a listing agreement, and the commission is whatever you negotiate.

The typical range is 2% to 3% of the sale price for a full-service listing agent. But I’ve seen it go as low as 1% with discount brokerages, and services like HomeRise charge significantly less than traditional agents while still providing full MLS exposure and professional support.

On a $500,000 home, here’s what that spread looks like:

• 3% listing commission = $15,000
• 2% listing commission = $10,000
• 1% listing commission = $5,000

That $10,000 difference between 3% and 1% isn’t abstract. That’s money you keep or money you hand over. And in my experience, the service difference between a 3% agent and a 1.5% agent is often minimal — you’re paying for a brand name, not better results.

Who Pays the Buyer’s Agent Now

This is where it gets interesting. After the settlement, the buyer is technically responsible for their own agent’s fees. They sign a buyer-broker agreement that states a specific commission amount — either a flat fee or a percentage.

But in practice? Sellers are still frequently covering buyer agent fees. Here’s why.

If a seller refuses to offer any compensation to buyer’s agents, fewer buyers will tour the property. Most buyers are already stretched on their down payment. Asking them to pay an additional 2-3% on top of their purchase price is a deal-killer for many.

So what’s actually happening in 2026 is a hybrid approach:

Scenario 1: Seller offers buyer agent compensation. The seller agrees (through their listing agent, outside the MLS) to pay a portion of the buyer’s agent fee. This is still common, especially in buyer’s markets or when sellers want maximum exposure.

Scenario 2: Buyer pays their own agent directly. The buyer negotiates their agent’s fee separately and doesn’t ask the seller for anything. This is more common with cash buyers or investors who are cost-conscious and negotiate lower rates.

Scenario 3: Buyer requests seller concession. The buyer asks the seller to credit them a certain amount at closing, which they use to pay their agent. This keeps the seller’s sale price intact on paper while still effectively covering the cost.

I’ve closed deals under all three scenarios this year. The market conditions in your area usually determine which one makes sense.

How Much Are Realtor Fees in Total?

Let’s talk real numbers, because that’s what matters when you’re sitting at the closing table.

The total realtor fees on a home sale in 2026 typically run between 4% and 6% of the sale price — but that range is wider than it used to be. I’m seeing more transactions close in the 3.5% to 5% range when sellers negotiate smartly.

For a $350,000 home:

• Old model (6% total): $21,000
• Current average (5%): $17,500
• Negotiated rate (3.5%): $12,250

That’s a potential savings of nearly $9,000 just by understanding your options. And it gets bigger on higher-priced homes.

The key thing I tell every seller: your listing commission is negotiable, and you have more leverage than you think. The NAR settlement didn’t just change buyer-side fees. It changed the entire conversation around what agents charge and what they should earn.

Can You Negotiate Realtor Fees?

Yes. Full stop. And you should.

A lot of sellers feel awkward about this. They worry they’ll get worse service or that the agent will be offended. In my experience, any agent who gets offended by a commission conversation isn’t the agent you want representing your biggest financial asset.

Here are the levers you can pull:

Negotiate the listing commission directly. Ask for 1.5% or 2% instead of the standard 2.5-3%. If your home is priced above $500,000 or in a hot market, you have even more room to negotiate.

Use a flat-fee or reduced-commission service. Companies like HomeRise offer full MLS listing and agent support for a fraction of traditional commissions. You get the exposure without the markup.

Limit buyer agent concessions. Instead of offering 2.5% to buyer’s agents, offer 2% — or a flat dollar amount. Most buyer’s agents will still show your home. The ones who won’t were probably going to be difficult to work with anyway.

Negotiate based on services. If you’re willing to handle your own photography or open houses, ask for a discount on the listing side. Some agents will lower their rate if you reduce their workload.

What About Dual Agency?

When one agent represents both the buyer and the seller — called dual agency — the total commission is usually lower. Instead of two agents each taking 2.5-3%, one agent might charge 4% total.

But I’m not a fan of this arrangement, and I’ll tell you why. Your agent’s job is to get you the best deal. When they represent both sides, they can’t advocate for either one. It’s a conflict of interest dressed up as a cost savings.

In some states, dual agency is actually illegal. In the states where it’s allowed, I’d recommend thinking carefully before agreeing to it. The $3,000 you save might cost you $15,000 in negotiation leverage.

Who Pays Realtor Fees in a For-Sale-By-Owner Deal?

FSBO sellers often assume they’re avoiding all commissions. And technically, they don’t pay a listing agent fee because they don’t have a listing agent.

But most FSBO sellers still end up paying a buyer’s agent commission. About 86% of buyers in 2024 used an agent, according to the National Association of Realtors. If those buyers’ agents aren’t getting paid, they’re steering their clients toward other properties.

So the typical FSBO scenario is: the seller pays 0% on their side (no listing agent) but offers 2-2.5% to buyer’s agents to attract offers. Total fees: 2-2.5% instead of 5-6%. That’s a real savings, but it comes with the trade-off of handling pricing, marketing, negotiations, and legal paperwork yourself.

How Realtor Fees Show Up at Closing

Realtor fees are paid out of the seller’s proceeds at closing. You don’t write a separate check — the title company or closing attorney deducts commissions from the sale price before cutting you a check for the remainder.

Here’s a simplified breakdown for a $400,000 sale with 4.5% total commission:

• Sale price: $400,000
• Listing agent commission (2%): $8,000
• Buyer agent commission (2.5%): $10,000
• Remaining mortgage: $200,000
• Other closing costs: $6,000
• Your proceeds: $176,000

That $18,000 in agent fees is the single largest transaction cost you’ll face. Bigger than title insurance, transfer taxes, and attorney fees combined. Which is exactly why it’s worth spending an hour to negotiate before you sign anything.

3 Ways to Reduce What You Pay in Realtor Fees

I’ve helped hundreds of sellers minimize their commission costs without sacrificing sale price. Here’s what actually works:

1. Interview at least three agents and compare rates. Don’t just accept the first number you hear. Get competing quotes. Some agents will match a lower rate just to win the listing.

2. Consider a reduced-commission brokerage. You can get full MLS exposure, professional photography, and agent support for 1-2% instead of 3%. The technology and business models exist — you just have to know about them.

3. Price your home right from the start. An accurately priced home sells faster, which means your agent does less work. Some agents will negotiate a lower commission on a home they know will sell quickly.

Frequently Asked Questions

Does the buyer ever pay realtor fees out of pocket?

Since the 2024 NAR settlement, buyers are responsible for their own agent’s fees in theory. In practice, sellers often still contribute through concessions. But yes — some buyers do pay their agent directly, especially when they negotiate a lower buyer agent rate or use a flat-fee buyer’s agent service.

Are realtor fees included in the mortgage?

Realtor fees are not rolled into the mortgage. They come out of the seller’s proceeds at closing. Buyers don’t finance their agent’s commission — they either pay it out of pocket or receive a seller concession that covers it.

What percentage do most realtors charge in 2026?

Listing agents typically charge 2-3%. Buyer’s agents charge 2-2.5%. Total commission on a typical transaction runs 4-5.5%, down from the 5-6% that was standard before the NAR settlement. But these rates are negotiable — always ask.

Can a seller refuse to pay the buyer’s agent?

Yes. Sellers are under no obligation to pay the buyer’s agent. But refusing to offer any buyer agent compensation can reduce buyer interest in your property. Most sellers offer at least 2% to keep the buyer pool strong.

Do I pay realtor fees if my house doesn’t sell?

No. Realtor commissions are only paid when the home sells and the transaction closes. If your listing expires without a sale, you owe your agent nothing — though some listing agreements include marketing cost reimbursements, so read your contract carefully.

Who pays realtor fees in new construction?

The builder typically pays the buyer’s agent a commission, usually 2-3%. This is built into the purchase price. On the listing side, the builder’s in-house sales team handles marketing, so there’s no separate listing agent fee for the buyer to worry about.