Who Pays Realtor Fees When Buying or Selling a Home?

Who Pays Realtor Fees

Written by admin

February 9, 2024

Whether you are a buyer or a seller, having an experienced realtor by your side while making real estate investments is necessary. Both sides have realtors working for their best interests, and there are some realtors who work for both the buyer and seller. In such cases, a question arises in everyone’s minds: “Who pays realtor fees?” 

Realtors get their fees by commission at the end of the deal. They don’t charge anything until the deal is done. Their fee is usually 5-6% of the selling price of the property, but it can vary for each realtor. If you are hoping to start your journey with real estate investments, you will need to hire a realtor for better success. The buyers and sellers are responsible for paying the realtor for different things, and in this blog, we will discuss how real estate agents get paid and by whom.

Who Pays for their Commission?

Usually, the seller pays for the commission for both the seller’s and the buyer’s agent. This is a common practice, and sellers are responsible for the commission for both sides. However, it can be different in some cases. It depends on how you perceive the situation and what you and your realtor agree on. If you wish to go the traditional way, then it is most likely the seller’s responsibility to pay for the commission.

Room for Negotiation

Buyers are mostly required to pay all the closing amounts after the deal, but there can be negotiations as well. The seller can negotiate the listings and try to get the burden off of the buyer. In case your buyer is in a tough market, and the bidding is strong, you can offer to pay some of the closing amounts for your buyer to stand out. If you place a good offer, your buyers will prefer your property against all competition. This is one sweet way to strike a deal. Hence, it is always better to have open negotiations because it can bring more opportunities and buyers for your house. While paying for the realtors and the closing cost is a small price to pay for it.

Discover Unlock the Secrets: How to Find a Reliable Real Estate Agent

Dual Agency

If you have prior experience with real estate, you must have heard about dual agencies. These agents work for both parties and get commissions from both ends, which means they make more money. However, dual agents are not as common as you might think. Some states don’t practice this, and some go as far as making it illegal. They believe that one person cannot work for both parties as it might cause a conflict of interest. One person’s gain might be another person’s loss, and if an agent is working for both, they are responsible for bringing profit for both. 

In such cases, it gets difficult to maintain a balance and be neutral. As an agent, you might find yourself leaning towards one party. In some cases, one of the parties even goes as far as bribing the agent to have more benefits. All these possibilities make it harder to believe that a conflict of interest is not a possibility. Hence, this might be a good option for some buyers and sellers, but it isn’t ideal for most.

Besides not being allowed in some states, it is better for buyers and sellers as well to hire an agent that works for their sole interest. You would want someone to only keep your interest as their priority. If you hire a dual agency, they will think about both parties’ benefits; on the other hand, if you have a separate agent (buyer’s or seller’s), they will think about only your benefit. And in business, that’s all you should care about.

Who Pays the Rental Agent Commission?

Rental agents are different from purchase agents. These agents are responsible for helping tenants find properties for rent. It’s about the landlord and the tenants to decide who pays for their commission. In some states, the landlords are responsible for paying for the rental agent’s commission because they find the right tenants for the property. While in some states, the tenants are required to pay for the commission even if the landlord has hired the agent. This happens in states where there’s a large rental population.

The commission for rental agents can range from one month’s rent to 15% of the annual rent of the property. The landlord and tenant can decide who pays for the commission, and once the deal is made, the agent ought to receive their fees.

Discover Can Realtors Accept Gifts From Clients?


We know getting into real estate can be confusing, but you don’t have to worry about who pays realtor fees yet. Once you start looking for properties, you will grasp more knowledge about the industry and your state. It will be spelled out in your contract; make sure to take time and read it thoroughly for better understanding. 
If you have any further questions regarding the contract, fees, and commission of your realtor, you can ask real estate agents; they are experienced individuals and have the know-how of the industry. You will get the right response from them, and once you have understood the process, the house-buying or selling experience becomes even more enjoyable. We hope that this blog answered all your questions regarding the realtor’s fees. If it did, get started with your real estate journey now.

You May Also Like…