You're standing in a kitchen with quartz countertops, trying to imagine your life there, but in the back of your mind, you're doing math. Buying a house is expensive. Everyone knows that. But the nagging question usually isn't about the mortgage—it's about the person standing by the door holding the clipboard. Who pays the real estate broker, exactly?
For decades, the answer was basically scripted. The seller paid. Always. It was a packaged deal, baked into the listing price like a hidden tax. But if you’ve looked at a news headline in the last year, you’ve probably seen that the old rulebook got tossed in the shredder.
Money is moving differently now.
The National Association of Realtors (NAR) settled a massive antitrust lawsuit in 2024, and the dust is still settling on the floor of every suburban living room and high-rise condo in America. If you think the "seller always pays" rule still applies in 2026, you might be in for a very expensive surprise when you get to the closing table.
The Old Way vs. The New Reality
Let's look at how it used to work. Historically, a seller would sit down with their listing agent and agree to a commission—often around 5% or 6%. That agent would then promise to give half of that money to whoever brought the buyer. This was advertised on the Multiple Listing Service (MLS) for every agent to see. It was transparent for the pros, but kind of opaque for the consumers.
That’s dead.
✨ Don't miss: Whittier 10 Day Forecast: Why This Week is Totally Weird
As of August 2024, those "offers of compensation" are banned from the MLS. Agents can’t just post a percentage and call it a day. This shift was intended to decouple the fees, theoretically lowering costs for sellers and forcing buyers to think about what their representation is actually worth.
Does the seller still pay?
Sometimes. Actually, quite often. But it’s no longer a guarantee.
Today, it's a negotiation. You’ll hear people talk about "concessions." This is just a fancy way of saying the seller is giving the buyer some cash at closing to help cover their expenses—including the buyer’s broker fee. It feels like the same thing, but the legal mechanism has shifted. It’s now a choice, not an automatic requirement of listing a home.
Why Buyers Are Suddenly Writing Checks
This is the part that trips people up. If you are a buyer, you now have to sign a "Buyer Representation Agreement" before you even tour a house. This isn't just a formality. It’s a contract.
In that contract, you agree to pay your broker a specific amount. Maybe it’s a flat fee of $5,000. Maybe it’s 2.5%. If the seller refuses to pay that fee via a concession, you are the one on the hook.
Honestly, it’s a bit of a shock to the system for first-time buyers who are already scraping together every penny for a down payment. You have to be incredibly careful here. If you sign an agreement saying you’ll pay your agent 3%, and you find a "For Sale By Owner" (FSBO) house where the owner won't budge on price or fees, you have to find that extra cash out of pocket. Lenders generally won't let you roll that commission into your mortgage. That's a huge hurdle.
The Seller’s Perspective: Is "Zero Commission" a Myth?
Sellers are feeling empowered. They see the headlines and think, "Great, I'll just save that 3% I used to give to the buyer's agent."
Hold on.
While a seller can technically pay $0 to the buyer’s broker, it’s a risky move. Real estate is about friction. If you make it harder for a buyer to afford your house by forcing them to pay their agent $15,000 on top of their down payment, your house might sit on the market. It’s basically supply and demand. In a hot seller’s market, you might get away with it. In a balanced market? You’ll probably end up paying that commission just to get the deal across the finish line.
Real-world scenarios for sellers:
- The Traditional Route: You offer a 2.5% concession to cover the buyer’s agent. This keeps your pool of buyers large and the process smooth.
- The "Split the Difference" Approach: You offer 1% or 1.5%. The buyer pays the rest. This is becoming more common in mid-range markets.
- The Hardline: You offer nothing. You might save money, but you risk losing buyers who simply don't have the liquid cash to pay their agent.
The Role of the Listing Agent
We’ve talked a lot about the buyer’s side, but the listing agent—the one with the sign in the yard—still gets paid by the seller. This is usually a straightforward percentage of the sale price or a flat fee.
The big change here is that the listing agent is no longer the "gatekeeper" of the total commission. They negotiate their own fee for marketing the home, and the buyer’s agent fee is handled as a separate line item in the contract. It’s much more granular now. It's more like an a-la-carte menu than a prix-fixe dinner.
Dual Agency: A Potential Conflict?
You might think, "I'll just go straight to the listing agent and have them handle everything. Then nobody has to pay a buyer's broker!"
This is called Dual Agency. In some states, like Florida and Colorado, it's either illegal or heavily restricted. Even where it’s legal, it’s tricky. Think about it. Can one person truly represent your best interests as a buyer while also trying to get the highest possible price for the seller? It’s like using your spouse’s lawyer in a divorce.
🔗 Read more: Why colouring in pictures for easter is still the best way to keep kids (and you) sane
In these cases, who pays the real estate broker? Usually, the seller still pays a single commission, but that agent is "neutral." You might save a little on the fee, but you might lose a lot more by not having someone play hardball on your behalf during the inspection phase.
What Most People Get Wrong
The biggest misconception right now is that commissions have been "slashed." That’s not necessarily true. The structure has changed, but the value of the work hasn't.
According to data from firms like Bright MLS, the average commission hasn't plummeted to zero as some predicted. Instead, it’s become more varied. You’ll see some agents charging flat fees for specific tasks—like $500 just to write a contract—while others maintain the traditional percentage model because they provide high-end staging, professional photography, and deep market analysis.
Another myth? That you can't negotiate.
You can. You always could, but now it’s expected. If an agent tells you "this is the standard fee," they are technically violating some of the spirit of the new regulations. There is no "standard" fee. Everything is up for grabs.
The Fine Print: Taxes and Closing Costs
When you're figuring out who pays the real estate broker, don't forget that these fees are often tax-deductible for the seller as a cost of the sale. For buyers, it’s different. Since you can't usually deduct the commission you pay, it’s a "sunken" cost of acquisition.
This is why buyers are fighting so hard for concessions. If the seller pays the fee, it’s effectively paid out of the home's equity. If the buyer pays it, it's cash out of the bank. That distinction is the difference between buying a house this year or waiting another twelve months to save more.
Actionable Steps for Navigating Broker Fees
Whether you're buying or selling, the landscape is messy. You need a strategy before you even look at a house or list your own.
📖 Related: Run for the Hills NYT: Solving the Clue That Stumps Solvers
For Buyers:
- Interview multiple agents. Don't just go with the person who sent you a postcard. Ask them exactly what they do for their fee.
- Negotiate the Buyer Rep Agreement. You don't have to agree to 3%. You can propose a flat fee or a lower percentage.
- Check for concessions early. Have your agent ask the listing agent before you tour the house if the seller is open to paying a buyer's broker fee. Don't waste your time on a house you can't afford the "entry fee" for.
- Budget for the worst case. Keep a "commission fund" separate from your down payment just in case you fall in love with a house where the seller won't pay a dime.
For Sellers:
- Run the "Net Sheet." Ask your listing agent to show you three scenarios: one where you pay a full buyer's commission, one where you pay half, and one where you pay zero. Look at the bottom line for each.
- Be flexible. In 2026, the best strategy is often "open to negotiation." State in your listing that you are willing to consider buyer concessions. It keeps the door open.
- Focus on the net price. If a buyer asks for a $10,000 concession to pay their agent but offers you $10,000 more than your asking price, it’s a wash. Don't get hung up on the principle of not paying the broker; look at the final check you get to take to the bank.
The old world of real estate is gone. In this new era, the answer to who pays the real estate broker is: Whoever has the most leverage in the moment. Understand your leverage. Know your numbers. And never sign a contract you haven't read twice. Real estate is likely the biggest financial move of your life; treat the commission with the same level of scrutiny you give the interest rate on your loan.
Expert Insight: If you're looking at luxury properties, expect the old 6% model to linger longer. High-end transactions often require significantly more upfront marketing investment from the listing broker, and sellers in that bracket are usually more concerned with a smooth, discreet transaction than saving a percentage point on the fee. In the entry-level market, however, expect "fee-for-service" models to become the dominant force by the end of the decade.