If you have ever bought a home, you may have assumed your buyer's agent worked for free. That assumption was not entirely wrong under the old rules, but it was not the full picture either. The seller technically paid the commission, but the money ultimately came from the sale price of the home, which the buyer funded. It was a circular arrangement that the industry kept intentionally quiet for decades.

That era is over. Following the National Association of Realtors settlement in 2024, the rules around buyer's agent compensation have changed in ways that every homebuyer and home seller in Washington State needs to understand before entering the market.

How real estate commissions worked under the old model

For most of modern real estate history, the commission structure worked like this: a seller signed a listing agreement with their listing agent that specified a total commission, typically somewhere in the range of 5% to 6% of the home sale price. That total commission was then split between the listing agent and the buyer's agent, with each side typically receiving around half.

Home sellers paid this combined fee out of their sale proceeds at closing. Homebuyers, meanwhile, never wrote a check to their own agent directly. The buyer's agent fee was folded into the transaction and funded indirectly through the purchase price.

This model kept things simple on the surface. But critics argued it created a conflict of interest: buyer's agents had a financial incentive to show homes that offered higher compensation, a practice known as steering. It also made it nearly impossible for buyers to know exactly what their representation was costing them.

What the NAR settlement changed

The NAR settlement, which took effect in August 2024, dismantled several long-standing practices around how brokerages advertise and negotiate agent commission fees.

The two most important changes for buyers and sellers are:

• Buyer's agent compensation can no longer be advertised on the multiple listing service. Listing agents cannot use the MLS to broadcast what a seller is willing to pay a buyer's agent. This was the primary mechanism for steering, and removing it forces commission conversations to happen directly between the parties. In certain instances, a commission will not be offered for a listing, when this occurs a negotiation on fees may take place.
• Buyers must sign a written buyer agency agreement before touring homes. This document clearly states the buyer's agent fee, how it is calculated, and who is responsible for paying it. Buyers now know upfront exactly what their agent expects to earn. A typical standard fee amounts to 2.5%.

These new rules do not eliminate the possibility of sellers paying the buyer's agent. They simply make it a negotiated term of the offer rather than a preset condition attached to the listing.

Who actually pays the buyer's agent now?

The honest answer is: it depends on the transaction.

In many cases, sellers still pay. Home sellers can still offer to cover the buyer's agent commission as a concession, and many do, because it makes their home more attractive to a wider pool of buyers. This concession is now negotiated as part of the offer rather than posted in the MLS.

In some cases, buyers pay directly. If a seller declines to cover the buyer's agent fee, or if the seller's contribution falls short of what the buyer agreed to pay their agent, the buyer is responsible for the difference at closing.

In FSBO situations, buyers often pay. For sale by owner transactions typically involve homeowners who are selling specifically to avoid paying agent commissions. A buyer who wants representation while purchasing an FSBO property will likely need to cover their own agent's fee out of pocket.

The key is that buyers now have a signed agreement in place before any of this becomes a problem. You know the number going in.

How commission rates are structured today

Realtor fees and commission rates are no longer standardized, and they were never legally required to be. What has changed is that the conversation about those rates now happens earlier and more explicitly.

Here is what buyers and sellers are navigating:

• Traditional agent, full-service model. A real estate agent offering comprehensive representation, from property search through closing, typically charges somewhere between 2% and 3% of the home sale price. This is the standard expectation for full-service buyer's agent compensation, though it varies by local market and agent.
• Flat fee models. Some real estate brokers and brokerages offer a flat fee structure instead of a percentage. This can work well for buyers purchasing at higher price points, where a percentage-based fee may feel disproportionate to the actual work involved.
• Discount brokers and limited service models. Services like Redfin and other discount brokers offer lower commission rates in exchange for a more limited scope of representation. These models can save money, but buyers should understand clearly what services they are and are not receiving.
• Dual agency. This occurs when a single real estate agent or brokerage represents both the buyer and the seller in the same transaction. It is legal in Washington State but carries a genuine conflict of interest, since the agent cannot fully advocate for both parties at the same time. Buyers and sellers should understand what they are agreeing to if this situation arises.
  
  

What buyers need to know before signing a buyer agency agreement

The buyer agency agreement is now the starting point of every buyer-agent relationship. Before you sign one, ask clear questions and read the document carefully.

What to look for in the agreement:

• The specific buyer's agent fee and how it is calculated (flat fee vs. percentage)
• Whether the fee is negotiable if the seller pays part or all of it
• What happens if you find a home on your own or through a seller directly
• The length of the agreement and whether there is an exit clause

What to ask your agent:

• How do you handle situations where the seller offers less than your fee?
• Will you negotiate your commission as part of the offer if needed?
• What does your full-service representation actually include?

Shopping around before committing to an agent is reasonable and increasingly common. The new rules effectively make buyer's agents compete for business on the merits of their service and commission structure, which benefits buyers who take the time to ask questions.

What sellers need to know about buyer's agent commission

Home sellers are no longer required to offer buyer's agent compensation. But choosing not to can affect how many buyers seriously consider your home, particularly buyers who are working with a traditional agent and may not have cash available to pay their agent directly at closing.

Many sellers in competitive markets continue to offer buyer's agent concessions because it expands their pool of qualified buyers. The calculation depends on your pricing strategy, market conditions, and how motivated you are to sell quickly.

If you are working with a listing agent, your listing agreement will define your agent's commission separately from whatever you decide to offer the buyer's side. The total commission is no longer a single bundled fee. Sellers' agents and buyers' agents now negotiate their compensation on separate tracks.

Understanding how these numbers affect your sale proceeds before you list is essential. A good listing agent will walk you through a net sheet that accounts for both the listing agent's commission and any buyer's agent concession you choose to offer.

Is the commission baked into the home price?

This question comes up often, and the answer is nuanced.

In a seller's market, listing price tends to absorb transaction costs, including commissions. Sellers price with their net proceeds in mind, which means buyers are indirectly funding those fees through a higher purchase price and a larger mortgage. The commission does not appear as a line item for the buyer, but it affects the total cost of the home purchase.

In a buyer's market, sellers often have less pricing flexibility. They may need to cover buyer's agent compensation without being able to raise the listing price to compensate. In those conditions, the cost lands more directly on the seller.

Neither situation is inherently unfair. What matters is that buyers and sellers both understand the full picture of a real estate transaction, including closing costs, realtor commission, property taxes, and lender fees, so they can make informed decisions.

How to navigate commissions strategically

Whether you are buying or selling, a few practical approaches can help you get more value from the new commission landscape.

For buyers:

• Negotiate your buyer's agent fee before you sign the buyer agency agreement
• Ask sellers to contribute to your closing costs, which can include your buyer's agent fee, as part of your offer
• Understand the difference between a lower commission and lower quality representation. In some cases they are the same. In others they are not.

For sellers:

• Discuss your options for buyer's agent concessions with your listing agent before pricing your home
• Factor total commission fees into your net proceeds calculation from the start
• Consider market trends in your neighborhood: if competing listings are offering buyer's agent compensation, opting out may affect your days on market
  
  

The role of a real estate agent in today's commission landscape

Working with an experienced real estate agent, on either side of a transaction, is more valuable now than it was before, not less. The new rules require more direct negotiation around commission, which means having someone who knows how to navigate those conversations skillfully can affect your outcome meaningfully.

The team at Every Door Real Estate works with buyers and sellers across the Seattle area and is experienced in navigating buyer agency agreements, commission negotiations, and transaction structures under the current rules. If you have questions about how commissions work in your specific situation, reaching out is a good starting point.

Key takeaways

• Sellers are no longer required to offer buyer's agent compensation through the MLS, but many still choose to
• Buyers must now sign a written buyer agency agreement before touring homes, which clearly defines the buyer's agent fee
• Commission rates are negotiable and vary by agent, brokerage, and service model
• FSBO transactions often require buyers to pay their own agent directly
• The total commission is now split into two separate negotiations: one between the seller and their listing agent, and one between the buyer and their buyer's agent
• Understanding all closing costs upfront, including agent commission, is essential for both buyers and sellers
  
  

Frequently asked questions

Do sellers still pay the buyer's agent commission? Often yes, but it is no longer automatic. Sellers can choose to offer buyer's agent compensation as part of their pricing strategy, but it is now a negotiated term rather than a preset condition attached to the listing.

What is a typical buyer's agent fee today? Commission rates vary, but full-service buyer's agent fees typically fall between 2% and 3% of the home sale price. Flat fee and lower commission models are also available depending on the brokerage and scope of services.

What happens if the seller offers less than what I agreed to pay my agent? You are responsible for covering the shortfall. You can negotiate with the seller to increase their concession as part of your offer, ask your agent if they will accept a lower amount, or pay the difference out of pocket at closing.

Is dual agency a problem? It can be. When one agent or brokerage represents both the buyer and seller in the same home sale, there is an inherent conflict of interest. Both parties should understand what they are agreeing to and consider whether separate representation would better serve their interests.