Who Pays A Realtors Commission?


Buying a home is expensive. Selling a home is expensive. This is common knowledge. Something you may not know ...

Just who pays the buyer’s real estate agent once a house sells (and who pays the seller’s, too).

It’s likely you haven’t really thought about this ever. For expediency’s sake, the answer is “the seller.” Yes, the seller pays their listing agent and the buyer agent’s commission.

A recent survey, asking 1,000 homeowners selling their houses in 2019 a couple of questions about the home selling process. One of the questions they asked was, “In most real estate transactions, who pays the buyer’s agent commission?” Almost half (45.5 percent) responded that the home buyer did.

35 percent of millennials aren’t using a real estate agent, and 60 percent of those who skipped the help said they were doing so to cut expenses. Again, it makes sense to do things your own way to save money—but it’s not correct in this case.

In real estate, it works a little differently. The seller pays because they’re the ones who are actually hiring their agent to sell their house.

“The listing agent and the office are truly hired meaning that there is an actual contract signed when one works with a seller’s agent. The contract, known as a listing agreement, specifies the commission, any fees, and the time period.

However with the buyers, there’s not this formal agreement required.

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