How does buyers agent commission work
How does buyers agent commission work
Buying a home is already a big decision—now, understanding how your buyer’s agent is paid is more important than ever. With recent changes in the real estate world, commission structures are evolving to offer more transparency and flexibility. Here’s what you need to know about how buyer’s agent commissions work today.
What’s New with Buyer’s Agent Commissions?
Traditionally, the seller paid the commission for both their own agent and the buyer’s agent, usually as a percentage of the sale price, split between the two. However, new rules and industry changes are shifting this model:
- More Transparency: Buyers now see commission agreements upfront and may have more say in how their agent is compensated.
- Negotiation Power: Instead of a set commission rate, buyers and agents can negotiate the fee for buyer representation. This could be a flat fee, hourly rate, or a percentage—whatever works for both parties.
- Seller’s Role: Sellers may still offer to cover the buyer’s agent commission, but it’s no longer automatic or required in every transaction. In some cases, buyers may pay their agent directly.
How Does This Affect Buyers?
For the first time, buyers might be asked to sign a written agreement with their agent outlining exactly how—and how much—the agent will be paid. This agreement spells out whether the seller, buyer, or a combination of both will cover the commission.
What Should Buyers Do?
- Ask Questions: Don’t be shy—ask your agent to explain their fee structure and what’s included in their services.
- Review Agreements: Read any buyer representation agreements carefully so you know your obligations and your agent’s responsibilities.
- Budget Accordingly: If you may be responsible for part of your agent’s commission, factor that into your home-buying budget.
The Bottom Line
Today’s commission structure gives buyers more choice and clarity than ever before. Your agent is your advocate—helping you find the right home, negotiate smartly, and navigate the closing process. Understanding how they’re compensated ensures a transparent, trusting relationship from the start.
Have questions about these changes or want to talk through your options as a buyer? I’m here to help you make sense of it all and guide you every step of the way.
Contact Alexis McKenzie Homes Alexis@4cfloridahomes.com for more informaiton about the real estate industry and current Four Corners Florida Market.
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