Buyer’s agent commission has become one of the most debated and misunderstood topics in today’s real estate landscape. In 2025, with commission structures under legal and market scrutiny, agents can’t afford to rely on outdated assumptions or one-size-fits-all models.
This guide breaks down how buyer’s agent commissions work now, what you can charge, who actually pays, and how smart agents are using lean, flat-fee models to earn more while doing less busywork.
Whether you’re full-time, part-time, or running a referral-based business, this article will help you stay informed and competitive.
What Is a Buyer’s Agent Commission?
A buyer’s agent commission is the payment made to the agent who represents the buyer in a real estate transaction. This fee compensates the agent for their time, negotiation skill, and guidance throughout the homebuying process, from property tours and offer structuring to due diligence and closing coordination.
Traditionally, the commission is calculated as a percentage of the home’s sale price: often between 2.5% and 3%.
This percentage is typically agreed upon in advance and outlined in the MLS listing, where the listing agent offers a portion of the total commission to the buyer’s agent as an incentive to bring a qualified buyer.
This written contract must clearly outline how the buyer’s agent will be compensated, whether through seller-paid commission, buyer-paid fees, or a combination.
This forces greater transparency but also puts more responsibility on agents to communicate their value and negotiate compensation upfront. It also means every agent needs a reliable strategy, and a brokerage model that supports flexible deal structures.
Who Actually Pays the Buyer’s Agent?
For decades, the industry standard has been for the seller to pay the entire commission, which is then split between the listing agent and the buyer’s agent. This amount is typically deducted from the seller’s proceeds at closing, meaning buyers don’t directly pay their agent.
This model worked well in the past because it streamlined compensation, but also blurred the lines of loyalty and disclosure. Many buyers didn’t know they had representation costs built into the deal, and some agents never clarified it.
New reality: buyers may pay directly or through concessions
Post-settlement, compensation is no longer assumed. In many cases, buyers are expected to sign agreements that make them financially responsible for their agent’s commission, either directly or by negotiating it as a seller-paid closing cost credit.
For example, a buyer could offer $405,000 on a $400,000 home and request the seller credit $5,000 back at closing to cover the buyer agent fee. This method has become increasingly common as sellers resist offering blanket commissions without knowing the buyer’s financial situation.
Buyers and agents alike are asking tough questions in this new environment:
- Can I negotiate a flat rate with my agent instead of a percentage?
Answer: Yes, and many do, $1,500–$2,500 flat fees are becoming more popular, especially in investor-driven or cash transactions. - What if I can’t afford my agent’s commission?
Answer: If the seller won’t offer a buyer agent fee, buyers may need to pay out of pocket, or the agent may choose to reduce or waive part of their fee. Negotiation is key, and clear written agreements matter. - Is it legal to offer $0 commission and let agents negotiate?
Answer: It’s legal, but not always practical. Most professional buyer agents won’t work for free and will need a signed compensation agreement to proceed.
What Percent Do Most Realtors Charge in 2025?
2.5% to 3% remains common across most U.S. markets
Despite structural changes, the numbers haven’t moved much, yet. In most regions, buyer’s agent commissions still hover between 2.5% and 3%. This range remains a norm in places like Atlanta, Birmingham, and Miami, where listing agents continue to offer competitive buyer incentives to attract traffic.
Exceptions in new construction, bonuses of 4% to 5%
In competitive markets, especially with new home builders, buyer agents may earn even more. Builders looking to unload inventory often offer 4%–5% commissions, plus bonuses for closing within a set timeframe. These are promotional strategies meant to draw agent attention and sell homes quickly.
Data-backed trends showing slow change
While legal rulings have reshaped the conversation around commissions, industry data shows gradual, not dramatic, shifts. Sellers remain open to offering standard buyer agent compensation if it leads to better offers. However, more agents are being asked to justify their fees, and buyers are becoming part of the negotiation process.
Regional Trends in Commission Shifts
In the Southeast: 2.5%–3% is still widely offered, but flexibility is growing. Buyers with limited closing cash are more frequently requesting seller concessions to cover agent fees, and sellers are adapting by adjusting listing prices or offering optional agent bonuses.
Ultimately, the market dictates what’s viable. In high-demand zip codes, sellers may offer less because they don’t need to incentivize buyers. In slower areas, commission remains a powerful tool to attract traffic.
How Buyer’s Agent Compensation Actually Works Now
Here’s how buyer’s agent commission fits into the transaction timeline:
- Initial Consultation – The agent and buyer sign a representation agreement outlining compensation terms.
- Offer Submission – The offer includes a clause on how the buyer agent will be paid, either by the seller, buyer, or as a concession.
- Accepted Contract – If compensation is a seller-paid item, it’s reflected in the contract and settlement statement.
- Disbursement at Closing – The title company or attorney disburses the agreed-upon fee to the brokerage, who then pays the agent.
Commission flow, dual agency implications
In dual-agency deals, where the same agent or brokerage represents both sides, the full commission is typically retained by that entity and then split internally. While this simplifies some logistics, it can introduce conflict-of-interest concerns, especially if the buyer feels pressured.
Tips to Handle Buyer Agent Fees as a New Agent
In today’s market, clarity isn’t just recommended, it’s required.
With new policies enforcing written buyer representation agreements, discussing your compensation isn’t just good practice; it protects your livelihood. A signed agreement ensures that you’re legally entitled to the commission you’ve earned, regardless of who pays it at closing. It also gives you the opportunity to explain your value upfront, rather than defending it at the eleventh hour.
Start every client conversation with transparency. Discuss how you’re compensated, what services you provide, and how your fee might be structured based on the type of deal.
Avoid jargon. Use plain language and show how your role adds value, particularly in negotiations, inspections, and closing timelines. The more confidently you own the conversation, the more trust you build.
Build It Into the Offer
If a buyer is responsible for your commission but doesn’t have the liquidity to pay out of pocket, structure your fee as a seller-paid concession.
For example, on a $350,000 home, you might offer $355,000 and ask the seller to credit $5,000 at closing. This approach allows buyers to finance the cost of representation through their mortgage while still ensuring you get paid.
That said, inflating the offer price can backfire if the property doesn’t appraise. Appraisers look at recent comps, not offer strategy. If your concession pushes the sale price too far above market, the lender may reduce the loan amount, leaving the buyer, and you, scrambling. Always have a plan B in case the appraisal comes in short.
Offer Flexibility, Not Rigidity
One way to stand out, and serve a broader range of clients, is to offer multiple compensation structures.
Some buyers appreciate a flat fee ($1,500–$3,000), while others are comfortable with a percentage. Flexibility allows you to tailor your services based on the deal, client budget, and level of involvement required.
Experienced investors, referral clients, or repeat customers might prefer value-based pricing that reflects efficiency rather than standard formulas.
If you’re closing a $250,000 cash deal in five days, a $7,500 commission may not make sense to either party. Offering an alternative shows professionalism and adaptability, qualities that clients remember and refer.
What New Agents Get Wrong About Commissions
Myth #1: Commissions Are Fixed by Law
There’s no law mandating a standard commission. While 2.5%–3% has long been a common practice, the recent legal shakeups have reinforced one point: commissions are entirely negotiable. What’s required now is that agents disclose and document exactly what they charge, and why. It’s your responsibility to articulate your fee and back it with value.
Myth #2: You Can’t Be a Referral-Only Agent
You don’t need to be a REALTOR® or subscribe to the MLS to hold an active license and earn referral income. At Realty Hub, many agents operate strictly on a referral basis, matching clients with full-service agents in other states or niches. These agents pay no board dues, avoid monthly subscriptions, and still generate income, often with zero transaction involvement.
Myth #3: You Need a Big Name Brokerage
The truth is: agents don’t close more deals just because they hang their license with a national franchise. In fact, many end up paying for brand prestige they never use, through commission splits, desk fees, and marketing charges they didn’t ask for.
Why Your Brokerage Structure Matters More Than Ever
Many agents join a brokerage without fully grasping how much it costs them over time.
In a traditional 70/30 or 80/20 split, the agent might gross $9,000 on a $300,000 deal at 3% commission, yet walk away with only $6,300 after the brokerage takes its cut. Add recurring tech subscriptions, marketing “packages,” desk fees, and franchise royalties, and net income drops even further.
We’ve seen agents increase their annual income by tens of thousands simply by switching to a flat-fee structure. One Florida agent previously earning $90,000 a year under a split model transitioned to our flat-fee system and took home over $120,000, without increasing deal count.
It’s not about working more. It’s about keeping more.
The Hidden Power of Lean Brokerages
Flat-fee brokerages eliminate overhead that doesn’t add value to your business. No office rent to subsidize. No minimum deal quotas. No monthly coaching programs you didn’t ask for. You only pay when you close a transaction, and that’s how it should be.
This structure attracts agents who value independence and are tired of corporate micromanagement. Whether you’re full-time, part-time, or referral-only, you set the terms of your business without internal pressure to hit someone else’s metrics.
Ready to Stop Letting Your Commission Slip Away?
If you’re trying to protect your income, reduce your fees, or finally build a real estate business that puts you in control, you’re exactly who Realty Hub was built for.
For too long, agents have been stuck in bloated brokerage models:
- Paying 20%–30% of their earnings to a brand they barely use
- Locked into franchise fees, desk fees, or monthly tech they didn’t ask for
- Chasing quotas instead of running their business their way
At Realty Hub, we do it differently.
Here’s how we help you win:
1. Keep 100% of your commission: Pay just $100 per year and $100 per transaction. No splits. No surprises.
2. Get support without micromanagement: We offer compliance tools, broker access, and E&O insurance, but never tell you how to run your business.
3. Flex your license your way: Referral-only? Part-time? Out-of-market investor? You’re welcome here. We support non-MLS agents and those who don’t join the REALTOR® association.
What Happens When You Make the Switch?
You stop stressing over splits.
You stop wondering what you’re really paying for.
You start making more per deal, without doing more.
And instead of adjusting your life to fit your brokerage, your brokerage adjusts to you.If you’re ready to take control of your business, your income, and your time 👉 Join Realty Hub today and build your business on your terms.