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  • Writer's pictureAttorney Jason A Greller

Who Really Pays Real Estate Commissions?

My buyer's agent tells me that I don't have to pay them anything; that the seller will pay all commissions and that this is free for me. Is that true?

In most cases, it is true that the buyer does not directly pay their agent's commission. Typically, the seller is responsible for paying the real estate commission, which is then split between the listing agent (representing the seller) and the buyer's agent. The offer of compensation from the listing agent to the buyer's agent is usually included in the property's listing on the Multiple Listing Service (MLS).

However, the commission arrangement can vary based on the specific terms of the agreement between the seller and the listing agent, as well as the agreement between the buyer and the buyer's agent. It is always a good idea to review the terms of your agreement with your buyer's agent to ensure you understand any potential costs or fees associated with their services.

It's worth noting that, while the buyer may not directly pay their agent's commission, the cost of the commission is often factored into the sale price of the property. In that sense, the buyer is still indirectly contributing to the commission through the purchase price. Nonetheless, working with a buyer's agent can provide valuable guidance, advice, and assistance throughout the home buying process, which can ultimately save time and money for the buyer.

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