Real Estate | Bristow & Northern Virginia
Do you ever wonder if you need to pay your real estate agent when you buy a home? If not, then how do they make money? Or do you know they get paid somehow, but you're just not sure how?
You're not alone — a lot of buyers aren't sure how this actually works. And here's something worth knowing upfront: the answer changed in 2024, so if you bought a home before then, or heard how this worked from someone who did, the rules today look a little different.
The Short Answer
It depends — and that's actually the biggest change. It used to be automatic that the seller paid both agents. Today, it's a genuine negotiation, spelled out in writing before you ever tour a home.
The Thorough Answer
For decades, the standard practice was simple: the seller paid their listing agent, and that commission was split with whoever brought the buyer. Buyers rarely thought about it directly, because it was baked into how every deal worked.
That changed with the 2024 National Association of REALTORS® settlement. Two things shifted:
- Buyer-agent compensation can no longer be advertised on the MLS. A seller can still choose to offer to pay it, but that offer now has to be communicated directly, not listed publicly alongside the home.
- Buyers now sign a written buyer-broker agreement before touring homes. That agreement spells out your agent's fee and who's expected to pay it — upfront, in writing, not something you find out about later.
So today, one of two things typically happens:
- The seller offers to pay the buyer's agent commission as part of their marketing strategy — still common in many markets, especially when sellers want to attract more buyers.
- If the seller doesn't offer to cover it, you're responsible for paying your agent directly, per the agreement you signed before you started touring homes.
Either way, the amount is fully negotiable between you and your agent — there's no set or standard rate, and it can vary depending on your agent, your market, and your specific situation.
Look at It This Way
Even when a seller pays the commission, that money doesn't come from nowhere — it comes out of their proceeds, which are funded by your down payment and loan. In that sense, you're still paying for your agent either way; the only real question is whether it's built into the seller's side of the transaction or paid directly by you.
What We Tell Our Buyers
Here's exactly how we handle it with our own buyers: our fee is documented upfront in a signed buyer-broker agreement, so there's no ambiguity about what it is or who's responsible for it. From there, we go to work negotiating with the seller as part of the contract to cover some or all of that fee. If the seller agrees to contribute anything, that amount gets credited directly toward what you owe — it doesn't just disappear or benefit anyone else. So while you're technically the one responsible for the fee on paper, in practice we're actively working to get as much of it covered by the seller as we can.
Bottom Line: Do Your Homework
A lot of buyers don't give much thought to the agent they choose, partly because there's rarely one clear moment of "hiring" someone. Don't just bounce between open houses or go with whoever happens to be there. Seek out an agent you actually trust — and now, more than ever, make sure you understand exactly what you're agreeing to before you sign anything or start touring homes.
Have questions about how this works for your specific situation? We're happy to walk you through it before you ever start your search. Get started →
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