Since August 17, 2024, a buyer who wants an agent to unlock a front door has had to sign a paper first, and that paper has to say in plain numbers what the agent will be paid. That one change is why “who pays realtor fees” became a real question again. The short answer for 2027: in most sales the seller still pays both agents out of the sale proceeds, and on a $417,500 home, the national median NAR reported for September 2026, an average total commission of 5.46% comes to about $22,800.
What changed is that the buyer’s side is no longer automatic. It is now set, promised and negotiated at specific moments, and each one is a chance for one side to pay more than it had to. Below, we follow the money in the order it actually gets committed, from the listing contract to the closing table. To see how commissions sit alongside title, lender and escrow charges, run your numbers through our closing costs calculator.
Weeks before the sign goes up: the seller sets the listing fee
The first commission anyone agrees to is the listing agent’s, and it is fixed in the listing agreement the seller signs before the house hits the market. Clever Real Estate’s August 2026 survey of 434 partner agents put the average listing commission at 2.76%, or about $11,500 on a median-priced home. That is a national average, not a rate anyone is obliged to accept; the buyer agreements NAR has required since 2024 must even state that fees are “fully negotiable and not set by law.”
Discount brokerages compete on exactly this line. Redfin’s standard listing fee is 2% in the markets it publishes, with market minimums that run from about $2,000 to $9,000 in San Francisco, and it refunds 1% if the seller buys their next home through a Redfin agent within 365 days. Clever advertises listings from 1.5% with a $3,000 minimum. Neither fee includes the buyer’s agent, which is the second decision the seller makes at this stage.
The listing agreement is also where a seller decides whether to offer anything to buyer agents up front. That offer is still allowed, but under the settlement rules it cannot be posted on the MLS, so listing agents now share it by phone, email or their own websites. A seller can also offer nothing and wait to see what buyers ask for.
Before the first showing: the buyer signs a number too
On the other side, the buyer’s commitment now comes before any house is chosen. NAR’s settlement guidance requires a written agreement before touring a home, in person or by live video. Talking to an agent at an open house does not count. Per NAR, the agreement must include:
- A specific, conspicuous statement of the amount or rate the agent will be paid.
- A fee that is objective, such as a flat dollar amount, a percentage, an hourly rate or $0, not an open-ended promise.
- A ban on the agent collecting more than that amount from any source, including the seller.
- A notice that fees can be negotiated and are not fixed by law.
Buyers rarely notice the third point, and it is the one that protects them. If you sign for 2.5% and a seller offers your agent 3%, the extra half point cannot go to the agent; it can only be credited back to you or left with the seller. What figure goes in the blank varies. In a HomeLight survey of more than 750 agents taken after the rules changed, 34% said their buyers’ agreements were landing at 2.5%, 24% at 3% and 10% at 2%. Clever’s 2026 survey put the average buy-side commission at 2.70%.
“Compensation for your agent remains fully negotiable.”
National Association of Realtors, settlement guidance for homebuyers
What both commissions add up to at four price points
Commission rates drift down as prices rise. Redfin’s closed-sale data for the third quarter of 2025 showed buyer’s agents averaging 2.52% on homes under $500,000, 2.32% from $500,000 to $999,999 and 2.22% at $1 million and up, with an overall average of 2.42%. Pair those with Clever’s 2.76% listing average and the dollar totals look like this:
| Sale price | Listing side at 2.76% | Buyer side (Redfin tier rate) | Combined |
|---|---|---|---|
| $300,000 | $8,280 | $7,560 (2.52%) | $15,840 |
| $417,500 (US median) | $11,523 | $10,521 (2.52%) | $22,044 |
| $750,000 | $20,700 | $17,400 (2.32%) | $38,100 |
| $1,200,000 | $33,120 | $26,640 (2.22%) | $59,760 |
The two surveys measure differently (Redfin uses closed transactions; Clever asks agents), which is why Clever’s 2.70% buy-side average sits above Redfin’s 2.42%. Plan with a range, not a single rate.
The offer: the buyer’s agent fee becomes a bargaining chip
This is the moment the buyer’s fee usually moves to the seller’s side of the ledger. A buyer whose agreement promises 2.5% can write the offer to ask the seller to pay it, either as a direct payment to the buyer’s broker or as a credit toward the buyer’s costs. Redfin’s December 2025 guidance is clear that no federal or state law makes a seller pay a buyer’s agent, but its internal data shows most listings still include some buyer-agent compensation. Clever’s October 2026 update reaches the same conclusion: in most 2026 sales, the seller still covered the buyer’s agent.
Each side has its own levers at this moment:
If you are selling
Weigh the buyer-agent request as part of net price. A $400,000 offer asking you to pay 2.5% nets the same as a $390,000 offer with no request. Refusing outright can thin the pool, since Redfin notes that some agents are less eager to show homes that pay their side nothing. Countering at a lower rate is often the quieter middle path.
If you are buying
Ask before you write the offer whether the seller has said anything about buyer-agent pay. If not, decide whether to request it in full, in part or not at all; a clean offer can win a competitive house. Whatever the seller does not cover, your agreement says you owe, so know that dollar figure before the purchase contract is signed.
Veterans have a specific rule here. VA Circular 26-24-14, effective August 10, 2024, lets VA borrowers pay “reasonable and customary” buyer-broker charges themselves in markets where the old MLS offers no longer exist. The fee cannot be rolled into the loan amount, and VA says it does not treat a seller’s payment of those charges as a seller concession. The circular stays in force until rescinded, and VA has said it will write a permanent policy through formal rulemaking. Confirm the current rule with your VA lender.
Closing day: where the checks actually get cut
Nobody hands an agent a check at the kitchen table. The title or escrow company pays both brokers from the funds at closing, and the Closing Disclosure shows who covered what. Seller-paid commissions come out of the seller’s proceeds, so a seller of a median home at a 5.46% total sees roughly $22,800 less in the wire. A buyer-paid fee shows on the buyer’s side and becomes part of the cash needed to close; for VA loans it goes in section H.
That cash is the trap for buyers. Someone who has saved for an 18% down payment, the median in NAR’s 2026 buyer profile, can find another $10,000 due at closing if a seller declined to pay. Ask your lender early how a buyer-paid fee will be handled on your loan type, because the answer sets how much cash you need in the bank.
The lawsuits still running into 2027 and what they change
The 2024 practice changes came out of the Sitzer/Burnett seller lawsuits; NAR’s final payment there is due in February 2028. A second wave, brought on behalf of homebuyers, is now settling. In April 2026 NAR agreed to pay $52.25 million to resolve buyer claims through the Tuccori v. At World Properties opt-in process, with most of its payments beginning after June 2028. Compass, HomeServices of America, eXp, Douglas Elliman and Hanna Holdings joined, bringing the fund past $120 million. The court granted preliminary approval in May 2026 and set a final approval hearing for November 2, 2026.
For anyone buying or selling next year, the more useful line is what NAR said the deal does not do: it requires no new practice changes. No federal rule announced for 2027 changes who pays realtor fees, so the 2024 rules described above are the ones to plan around. Check your state’s real estate commission, though, because some states have written their own buyer-agreement requirements.
Realtor fee questions that come up late in the process
Can I negotiate realtor fees after I have signed the agreement?
You can ask. Listing and buyer agreements are contracts, so the agent has to agree to any change, but agents do sometimes reduce a fee to keep a deal together. Negotiating realtor fees works best up front, when you can compare agents and discount brokerages.
Do real estate agent fees get paid if the sale falls through?
Usually not. Commissions are normally paid from closing funds, so if the deal does not close, neither agent is paid from it. Read your agreement, though: some listing contracts say a fee is owed if a ready, willing and able buyer is found and the seller backs out.
Are realtor fees tax deductible when I sell?
Commissions are not a deduction on their own, but for a home sale the IRS treats them as selling expenses that reduce the amount realized, which lowers any taxable gain. A tax professional can confirm how this applies to your sale.
Who pays the realtor fees in a for-sale-by-owner deal?
With no listing agent, the seller owes no listing commission. If the buyer has an agent, the buyer’s agreement sets that fee, and the buyer either pays it or asks the owner to cover it in the offer, just as with a listed home.
Are realtor commissions part of closing costs?
They are paid at closing and appear on the Closing Disclosure, but they are usually counted separately from lender, title and government fees. Sellers often think of them as the biggest closing cost because they are taken from the sale proceeds.
Other costs on the way to closing
- Insurance, real estate and legal costs: the complete 2027 guide
- Who pays closing costs, buyer vs seller, line by line
- Home inspection cost and the add-ons worth paying for
- Homeowners insurance cost and the dials you control
- Land survey cost by survey type
- What refinancing a mortgage costs in fees
- Closing costs calculator
A one-line rule for each side of the table
Sellers: judge every offer by what lands in your account after both commissions, not by the price at the top. Buyers: treat the number in your buyer agreement as a bill you may have to pay yourself, and only sign a rate you could cover in cash if the seller says no. Everything else in this transaction is negotiable around those two facts.
Pricing method: prices were researched in November 2026 for 2027 planning and may change. Figures come from NAR’s settlement guidance, September 2026 existing-home sales report and 2026 Profile of Home Buyers and Sellers; Redfin’s Q3 2025 commission report and seller guidance; Clever Real Estate’s August 2026 agent survey and published fees; HomeLight’s agent survey; VA Circular 26-24-14; and NAR and HousingWire reporting on the Tuccori settlement. This is general information, not legal, tax or financial advice; confirm terms with a licensed agent, attorney or your lender. See our disclaimer.
