Buying a house (and getting a good deal) requires market knowledge, negotiation skills, and close attention to detail — which is why most buyers work with a real estate agent.
Buyer’s agents typically earn a commission of 2–3% of the home’s sale price, which can amount to $10,000 or more on a $500,000 home. While this fee is often negotiated with the seller as part of the offer, buyers are now responsible for agreeing to their agent’s fee upfront — a major change following the National Association of Realtors’ lawsuit settlement.[1]
You may not have to pay your agent out of pocket, but it's important to understand how this fee works — and how to potentially offset it.
Clever Real Estate can match you with a top-rated local buyer’s agent and help you qualify for cash back after closing in most states. That means you get expert guidance and money back in your pocket. Fill out this short quiz to get matched to agents today!
How much is the buyer agent compensation?
Real estate commissions typically range from 5–6% of the home’s sale price, with the total fee split between the buyer’s agent and the listing agent. The buyer’s agent usually receives slightly less than half of the total commission.
Listing or seller's agents charge an average of 2.77% nationwide, while buyer's agents charge 2.67%, based on a survey by Clever Real Estate.
For example, on a $400,000 home with a 6% commission rate , the agents would earn just under $24,000. The buyer’s agent might earn around $10,000 to $11,000, depending on how the fee is divided.
Since the NAR settlement, buyer’s agent fees have fallen slightly. The average buyer’s agent commission was 2.37% for homes sold in Q4 2024, according to Redfin.[2] That’s essentially unchanged from 2.36% in the third quarter, during which the NAR rules went into effect, but down slightly from 2.45% a year earlier, right before the new rules were announced.
Here’s how much a buyer’s agent earns on a $400,000 home sale with different commission rates.
| Commission rate | Buyer's agent fee |
|---|---|
| 1% | $4,000 |
| 2% | $8,000 |
| 3% | $12,000 |
| 4% | $16,000 |
What buyer’s agents do
The buyer’s agent typically starts working with you before you make any offers, providing key services that you might not have the time or expertise to handle solo.
Buyer’s agents are local market experts, so they can help you find a home that suits your needs, introduce you to suitable neighborhoods or areas, and make appointments for home showings.
A buyer’s agent also has access to the local multiple listing service (MLS), the platform where homes are listed for sale, and you’ll need to work directly with a buyer’s agent to explore homes on the MLS.
After you find your dream home, the buyer’s agent will help you with:
- Write a competitive offer, using recent sales data to guide pricing and terms
- Negotiate with the seller to get you the best deal
- Include key contingencies, like home inspection and appraisal clauses, to protect your interests
- Submit the offer and handle the paperwork
- Manage post-offer negotiations, such as price adjustments or repairs after the inspection
- Refer you to trusted local pros, like inspectors, lenders, and attorneys
- Guide you through closing, ensuring all steps are completed and the home is legally transferred to you
In short, a buyer’s agent is your advocate — helping you avoid costly mistakes and navigate the home buying process with confidence.
Benefits of working with a buyer’s agent
Working with a buyer’s agent can provide numerous benefits to homebuyers. One key advantage is access to a wider range of properties, including those not publicly listed.
Buyer’s agents offer expert guidance on the home-buying process and local market trends, helping you make informed decisions. They assist with negotiating offers and counteroffers, ensuring your interests are protected throughout the transaction.
A buyer’s agent also helps navigate complex paperwork and regulatory requirements, making the process smoother and less stressful. Additionally, you may benefit from potential cost savings through negotiated commissions or rebates, making the investment in a buyer’s agent worthwhile.
Are buyer's agent fees negotiable?
Yes, buyer commission can be negotiated. Some buyer’s agents charge 2% commission or even 1% commission.
However, a realtor who charges a low commission should offer the same level of service as a realtor who charges a 3% commission. It’s important to discuss these variables with the buyer’s agent before signing an agreement.
Negotiating a lower commission rate for the same level of service is always possible! If you’re hoping to save money on a buyer’s agent and negotiating makes you nervous, consider a service like Clever Real Estate. Buyers matched with an agent through Clever Real Estate may qualify for cash back on their home purchase, making it an easy way to reduce commission costs.
Some buyer’s agents will charge flat fees, which don’t vary based on the home price but can vary depending on the level of services provided. A flat-fee agent might charge less for basic services (such as writing offers) and more for negotiating price and contingencies with the seller’s agent. A full-service flat-fee agent will likely cost more than one providing limited services.
Are sellers still paying buyer's agent fee?
Sellers have traditionally paid the buyer’s agent fee at closing. After the buyer pays the seller for the home (either through a mortgage or with cash), the seller pays both the buyer’s agent and the listing agent from their proceeds.
For the most part, sellers are still paying buyer’s agent fees, but the NAR settlement has changed this practice in some noteworthy ways.
- First, sellers can no longer advertise buyer’s agent fees in their MLS listings; previously, NAR required sellers to list buyer’s agent commission on the MLS.[3]
- Buyers are now responsible for negotiating their agent's fee and signing a buyer’s agent agreement before getting help with their home search and purchase.[4]
In today’s market, buyer’s agent fees are typically negotiated during the offer process. Sellers may request that the buyer lower their agent’s fee, or choose not to offer compensation. In these cases, the buyer may have to pay their agent out of pocket.
“If a listing doesn’t offer buyer agent compensation, it’s perfectly reasonable for the buyer to request it as a seller-paid concession, just like closing costs,” says Shane Parker, a real estate broker at S&P Realty. “When that’s not possible, buyers can negotiate a flat fee with their agent to keep things transparent and fair.”
How to save on the buyer’s agent fee
There are a few options for saving money on the buyer’s agent fee for both sides of a real estate transaction.
For buyers
Buyers can either negotiate a lower buyer’s agent commission upfront before signing the buyer’s agent agreement, or they might choose to work with an agent who charges a flat fee. (This might or might not save them much money, depending on the final price of the home and the flat fee amount.) Another option is to work with an agent who offers a home buyer rebate.
Services like Orchard and Clever Real Estate can help you find agents who offer competitive rates or rebates, making it easier to reduce your out-of-pocket costs while still getting full-service support.
For sellers
Sellers can negotiate a lower buyer’s agent fee during the offer process, asking the buyer to lower the commission they're paying their agent. Or, they can decline to pay the buyer’s agent fee entirely. If sellers don’t pay the buyer’s agent fee, the buyer will have to shoulder the full fee, which adds to their budget.
Sellers must understand that their ability to negotiate the buyer’s agent fee — or to decline to pay it entirely — is contingent on their local market. Deciding not to pay the buyer’s agent fee could mean that an otherwise solid offer doesn’t result in a home sale, which could, in turn, mean that the home stays on the market longer, possibly with lower offers.
Declining to pay the buyer’s agent fee should only be considered in markets with plenty of qualified buyers. In these markets, the seller can be confident of receiving multiple offers, and buyers will likely be more willing to accommodate the buyer’s agent fee on their own.
The bottom line
Buyer’s agents are typically paid on sales commission, so the buyer’s agent fee depends on the home's final sales price.
As a valuable resource and advocate for buyers, it’s smart to work with a buyer’s agent (especially for first-time buyers), and there are ways to save money on a buyer’s agent fee if you’re not willing to pay 2.5-3% commission.
Clever Real Estate is a good option for finding qualified buyer’s agents and evaluating their fees. It allows buyers to compare agents and their fees before signing a buyer’s agent agreement, and qualified buyers can also get cash back after closing. Try Clever today and save more!