Should You Pay the Buyer's Agent When You Sell?

By Brandie Jones

With nearly 20 years of experience and hundreds of homes sold since 2006, Brandie Jones is known for putting people first.

Ever wonder how real estate agents get paid, and how it affects the sale of your home? It’s a question a lot of sellers have but rarely get a clear answer to, so let’s talk about compensation and commissions and what you need to know to make the best financial decision when you sell.

There’s no standard commission rate. Let’s clear up a common misconception first. There isn’t, and there never has been, a customary, standard, average, or traditional compensation rate. Commissions have always been negotiable, and they should be based on the value, education, knowledge, experience, and marketing that the agent you hire brings to the table. When you sign a contract with your listing agent, part of that agreement states the compensation you both agree on. Remember, no one works for free. Agent commissions are negotiable, andunderstanding what you'll actually walk away with is a big part of planning your sale.

New rules changed who pays the buyer’s agent. Historically, the compensation for the buyer’s agent was often paid by the seller. That’s shifted. Underthe NAR settlement that took effect in August 2024, buyers now sign an agreement with their agent before touring homes, and that agreement spells out how their agent will be compensated. That compensation is still negotiable, and as a seller, you can still choose to cover it, which brings us to the next point.

You can still offer to cover it. As a seller, it’s important to understand that you can still offer compensation to the buyer’s agent. That can take the form of a closing cost credit, a specified amount, or a percentage of the sale. You might be asking yourself why you’d consider paying it at all. Think about it from the buyer’s perspective. A deal where the seller covers all or part of the buyer’s agent compensation is more attractive than one where the buyer has to cover it themselves.

Skipping it can cost you offers. Before the new regulation, compensation for both agents typically came out of the proceeds at escrow. Now, if the buyer has to cover their agent’s compensation, it adds to their financial burden, which can be tough or even impossible for many buyers, especially first-time buyers. If no compensation is offered from the seller, it stands to reason that some buyers simply won’t be able to make an offer. That could hurt the sale of your home and actually cause you to net less. Some buyers won’t want to look at homes without seller-paid compensation, others will have their agents negotiate for the seller to pay it, and some who have the means will still choose to pay it themselves. The result can be fewer offers on your home, and that’s not what any seller wants. Just likepricing your home right from the start, this is a decision that directly affects your outcome.

My advice is to handle it case by case. Take it step by step, case by case. Let the buyer ask for what they want or need when they make their offer. If you’re willing to pay 2.5% but the buyer only requests 2%, or doesn’t request anything at all, you’d have overpaid. That’s exactly why I handle it on a case-by-case basis. Your main concern should be your bottom line, what you walk away with after the sale, and we’ll talk through what’s best for you. As agents show interest in your property, things like market conditions, inventory, buyer interest, and the desirability of your home all play a role in the decision. It’s a case-by-case scenario, and we’ll work through it together as we go. The goal is to make sure you get the best possible outcome for your sale.

If you’re thinking about selling and want a clear plan for handling commissions in a way that protects your bottom line, I’d love to help you put one together. Give me a call or text at 310-930-5495, email me at bjones@kingdomrealtyteam.com, or visit blog.kingdomrealtyteam.com. I look forward to working with you.