"Today, there are several ways an agent's compensation can be structured, depending on what's agreed to in writing: Seller-paid commission: The seller may choose to pay their listing agent's commission and may also offer compensation to the buyer's agent, but this must be clearly disclosed and documented in the listing agreement. Buyer-paid commission: The buyer may agree to pay their agent directly, either as part of their closing costs or through a separate buyer-broker agreement."
"Both buyers and sellers must now have written agreements with their agents outlining how compensation will be handled before touring homes or listing a property. Key takeaway: Real estate agent compensation is fully negotiable. The payment structure should be agreed upon early and put in writing so everyone understands how and when each agent will be paid. Are buyers now responsible for paying their agent? Not necessarily. Under the 2024 NAR settlement, buyers generally must sign a written agreement with their agent."
Real estate agents receive payment through negotiated commissions that are agreed and documented before representation begins. Commission rates and payment structures vary by market, brokerage, and the services provided. Compensation can be structured as seller-paid, buyer-paid, or as negotiated arrangements where buyers and sellers share or alter payment responsibilities. Sellers may pay listing-agent and buyer-agent commissions and must disclose those amounts in the listing agreement. Buyers can pay agents directly via closing costs or buyer-broker agreements. Both buyers and sellers must sign documented agreements outlining compensation terms, and the 2024 NAR settlement requires buyers to confirm compensation arrangements before representation.
Read at Redfin | Real Estate Tips for Home Buying, Selling & More
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