The majority of consumers use a real estate agent when buying or selling a home. In fact, in 2025, 88% of buyers used an agent, while a whopping 91% of sellers did so.

But understanding how agent fees work and how to negotiate them can help you get the most out of that relationship, whether you're buying or selling.

Are you planning on using an agent for your home purchase or sale? Here’s what you can expect to pay for it, particularly if you use a VA loan.

What Are Real Estate Agent Fees?

When you use a real estate agent to buy or sell a home, they’ll get paid for the services they provide. Sometimes, it’s based on a percentage of the home's total sale price, often around 5 to 6%, or a flat fee or an hourly rate. It all depends on the agent you choose, the services they’re providing and what’s common in your market and area. 

Typically, real estate agent fees cover things like:

  • Putting together the listing for your home
  • Negotiating offer/sales contracts on your behalf
  • Marketing the property and hosting an open house
  • Helping you find listings that match your needs and budget

Some agents will also attend your closing appointment, which is when you sign your final loan documents and receive your keys.

According to the National Association of Realtors, agent fees are fully negotiable, so plan to work with your agent on what payment structure will work best for your arrangement.

Who Traditionally Pays the Fees?

Traditionally, it’s the seller who pays for the real estate commissions, both for their agent and for the buyer’s agent who purchases their home. This is often referred to as a “commission split,” as it involves splitting the total commission between two agents. 

It works like this: The seller’s agent gets 5 to 6% of the home’s sale price once the sale is complete. So, on a $500,000 home, that’d be $25,000 to $30,000. They’d then split that money with the agent who represents the buyer. 

These types of commission splits are very common, so agents will usually price properties with these commissions in mind from the start. 

How the 2024 NAR Settlement Changed Who Pays Fees

In late 2024, the National Association of Realtors settled several class action lawsuits regarding its former commission structure, which previously forced sellers’ agents to advertise commission splits on any listings posted on Multiple Listing Services, the primary databases that agents use to sell and market properties.

NAR’s settlement changed this practice, as well as several other elements of how commissions work. Under the new rules:

  • Commission splits can no longer be listed on MLS databases
  • Buyer agents must have written buyer-broker agreements with their clients, detailing their compensation structure, prior to touring any homes

With the new settlement in place, seller agents no longer have to split their commissions with buyer agents, though it’s still common. The main difference now is that agents who do offer these splits must communicate them outside of the MLS, not as a part of their listing.

The settlement has also brought about a larger number of real estate agents offering flat-fee and a la carte services, rather than commission-based work. There are also many discount brokerages, which offer lower commission rates than the traditional 5-6% model. (Industrywide, average fees still remain about the same, though, according to Clever Real Estate data.)

How Fees Work for Buyers

If you're buying a house, and the listing agent has offered your agent a commission split that fully covers what's outlined in your buyer-broker agreement (BBA), then you won't have to pay anything out of pocket for your agent's services. Instead, their pay will come out of the listing agent's commission once the transaction is complete.

In some cases, there may be a difference between what the seller's agent offers and what your agent is owed under your BBA. If so, the buyer is typically responsible for covering that difference. For example, if your BBA states your agent will be paid 3%, but the listing agent only offers to cover 2%, you'd owe that remaining 1% out of pocket. On a $300,000 home, that gap would be $3,000; something worth clarifying before you make an offer, so there are no surprises at closing. This is why reviewing your BBA carefully and understanding the commission structure of any home you're considering matters before you make an offer.

You can also try to negotiate with the sellers of the home you're buying to get them to cover your agent fees, or any gap in fees, as part of your offer.

If you prefer a more predictable cost structure, some agents offer flat fees for specific services, which can be useful if you've already found the home you want and just need help with contracts and negotiations. Discount brokerages are another option if you're looking to reduce costs overall.

How Real Estate Agent Fees Work for Sellers

For sellers, your agent’s fee is almost always going to come out of the sale proceeds. This means that once you sell the home, their commission will be deducted from your profits, and you’ll get the remainder.

There’s no set-in-stone commission you must pay the agent. This will be negotiated ahead of time and detailed in your contract with the agent before you list your home. You can always shop around for agents to find one that meets your needs and budget.

Again, if you’re looking for reduced services or need a less hands-on approach, negotiating can be a good idea. Flat-fee and discount brokerages can often help here.

What Veterans Need to Know

As with many things, the rules around real estate agent fees are slightly different for those using a VA loan. See below for the info you’ll need as a Veteran or military buyer.

Traditional VA Rules on Realtor Fees

Prior to the NAR settlement, VA buyers were prohibited from paying any agent fees. Instead, these needed to be paid by the seller, and buyers would need to negotiate this coverage up front when making an offer. 

Since the NAR settlement gave sellers a way of avoiding buyer’s agent fees, the VA loan program had to adapt, or VA buyers would be at a disadvantage compared to traditional buyers. New agent fee rules were released in August 2024 to keep VA buyers competitive.

Recent Policy Update (2024–2026)

According to the VA’s new rule, VA buyers can now pay for certain real estate agent fees, as long as the home is purchased after Aug. 10, 2024 and the fees are “reasonable and customary amounts.”

The fees cannot be included in the loan amount, and the fees must be considered when evaluating a borrower’s loan application.

VA borrowers can also negotiate the amount of these fees, and sellers can still pay for them, as long as they are negotiated upfront as a part of the sales agreement. 

How VA Buyers Can Structure Fee Payments

VA buyers have a say in what fees they pay and how, so negotiating is key if you’re on a tight budget. 

You can:

  1. Have the seller’s agent pay these fees
  2. Negotiate seller concessions, and have the seller cover them out of their sale proceeds
  3. Pay your agent directly via a commission, hourly rate or flat fee
  4. Split costs with your seller or seller’s agent (again, this would be done in negotiations when making your offer)

Shop around and ask how various agents in your area structure their fees. If you’re on a budget, they can help you focus on listings that come with commission splits or zero in on sellers they know are motivated to sell. This may help you negotiate better to get your fees covered, rather than paying them out of pocket. 

Negotiating Realtor Fees

Since the NAR settlement, understanding how agent compensation works before you start your home search is more important than ever. The best way to avoid surprises is to have an upfront conversation with your agent about their fee structure and make sure everything is clearly outlined in your buyer-broker agreement before you begin working together.

A good agent will walk you through your options and help you understand what's typical in your market. Some agents offer flat-fee or a la carte arrangements for specific services, and discount brokerages exist for buyers looking for a more limited scope of help. That said, the value a full-service agent brings, including market knowledge, negotiation experience, and guidance through a complex transaction, is worth weighing carefully against any short-term savings.

How Realtor Fees Affect Your Budget

Understanding how real estate agent fees factor into your budget helps you plan smarter, whether you're buying or selling.

If you're selling a home, agent fees are typically deducted from your sale proceeds at closing. On a $400,000 home, a 6% commission covering both agents would come to $24,000, which is worth factoring into your net proceeds estimate as you plan your sale.

For buyers, agent fees typically range from 2.5% to 3%. On a $300,000 home, that's roughly $8,250, which may be covered by the seller or their agent, but is worth planning for in case it isn't. If you do need to pay out of pocket, you'd bring those funds to closing along with your down payment and closing costs.

If you'll need to cover agent fees out of pocket, a little planning goes a long way. A few things to keep in mind:

  • Ensure you have enough in savings to cover the fees
  • Be careful to leave enough cash for your down payment, closing costs and other upfront fees, too (moving expenses, utility deposits, etc.)
  • Keep your emergency fund intact. Homeownership comes with unexpected costs, and having a cash cushion gives you peace of mind after you close.

Work closely with your loan officer to understand how agent fees fit into your overall picture. They can help you balance these costs alongside your down payment and closing costs to make sure everything works together.

Alternatives to Traditional Realtor Commissions

Flat-fee and discount brokerages are available for buyers and sellers who prefer a more limited scope of service. These can make sense in certain situations, but it's worth understanding exactly what's included and what you'd be handling yourself before going that route.

Some sellers also choose to list their home without an agent, known as FSBO, or For Sale By Owner. This can reduce commission costs, but selling a home involves a lot of moving parts, and without professional representation, it can affect both the speed and final price of the sale.

Use Your Network

Finding the right agent makes a significant difference in your homebuying or selling experience. Start by asking people you trust, including friends, family, neighbors, and colleagues, for agent recommendations in your area. A referral from someone with firsthand experience is often the best way to find an agent who's a strong fit.

Your loan officer can also be a great resource here. Many have established relationships with experienced local agents and can point you in the right direction.