--- title: Who Pays the Buyer's Agent Commission? - Transactly description: You're thinking it's time to stop paying rent and buy a home, but do you know who pays the buyer's agent commission in a real estate transaction? You.. image: https://blog.transactly.com/hubfs/Imported_Blog_Media/Who_Pays_The_Buyers_Agent_Commission.jpg --- Selling a House # Who Pays the Buyer's Agent Commission? You're thinking it's time to stop paying rent and buy a home, but do you know who pays the buyer's agent commission in a real estate transaction? You.. [ Madison Clifton ](https://blog.transactly.com/author/madison-clifton) Jun 6, 2019 --- You’re starting to think that paying rent is for chumps. You want to buy a home and have the money you pay each month.  Plus, you want to be invested into something that is yours instead of lining your landlords pockets. You start thinking about the math of how much home you can afford, taxes, [insurance](https://transactly.com/what-does-an-ho8-policy-cover/), [closing costs](https://transactly.com/reduce-closing-costs/) and then you start to wonder, who pays the buyer’s agent commission? The answer can vary based on a few factors. **Feeling overwhelmed by piles of paperwork?** Not anymore. Transactly Coordinators handle **90%** of closing tasks. [Stress Less Today ](https://transactly.com/get-a-tc-today/) ### **Industry Standard** What most new home buyers and sellers who enter the market fail to realize is that it is technically customary for the seller to be the one who pays the [buyer’s agent](https://transactly.com/what-does-a-buyers-agent-do/) commission. Let’s start from the beginning. First, the listing agent negotiates with the seller a percentage of the sale price that they will keep as their [commission](https://transactly.com/how-much-commission-do-realtors-make-from-a-sale/). As an example, let’s say they agree to 6%. The listing agent then shares that 6% with the buyers agent for bringing a ready and able buyer for their seller. The percent that the listing agent is willing to share with the buyer’s agent will be stated in their marketing, typically 50%. However, it is totally dependent on the wishes of the seller, since they are the one paying, to determine how the funds are divvied up. Occasionally, you may see that a seller wants to list with an agent for a discounted amount (say 1.5%) but offer a 3% reward to the agent who brings the buyer. ### **Refer to Your Buyer’s Agency Agreement** In some states, it is customary that when you are working with an agent to help you purchase a home, they will have you [sign an agreement](https://transactly.com/should-you-sign-an-exclusive-buyers-agent-agreement/). This contract lays out what is expected of you and of your agent. In this agreement, the agent’s commission will be clearly stated that x% (or minimum dollar amount) is to be paid for their work. When it comes to who pays the buyer’s agent commission, the agreement will state that if the seller or listing agent does not compensate the buyers agent, then the buyer is responsible to satisfy the agreed upon amount to their agent at [closing](https://transactly.com/how-long-does-it-take-to-close-on-a-house/). In that scenario,  leaving you, the buyer,  paying the commission if the seller isn’t offering one.  ### **Is the Home For Sale By Owner?** As you scour the internet for your dream home, you may see some houses for sale that are not listed in the [MLS](https://transactly.com/the-mls/). You might come across them on  [Zillow](https://www.zillow.com/) or happen to stumble upon a handwritten sign at the corner of a neighborhood that says “[FOR SALE BY OWNER](https://transactly.com/fsbo-vs-selling-your-house-with-an-agent-the-pros-and-cons/)”. This means that the owner decided to not pay a listing agent to market the home. Depending on the seller, they may or may not be willing to be the one who pays the buyer’s agent commission. Your agent can inquire with the homeowner, but it may be stated in their listing as to whether they are willing to compensate the buyer’s agent. If no, then the buyer is responsible to satisfy the agreed upon amount to their agent at closing. This goes back to reading your buyer’s agency agreement (if you have one) so you know what is expected of you. There are FSBO cases where the seller is only willing to offer a certain amount to your agent, and in that case, you are left to make up the remainder. **Get ahead of the competition** With** Early Access** to the new Transactly Pro Membership plan! [Access Pro Now ](https://transactly.com/transactly-pro-membership-pricing/) ### In the End, It’s All Negotiable Now you’re a little more informed as to how the system works and who pays the buyer’s agent commission. This is a good time to mention that when it comes to real estate- everything is [negotiable](https://transactly.com/how-to-negotiate-a-seller-credit-for-closing-costs/). Haggle with a FSBO, cut a deal with your agent for a [commission rebate](https://transactly.com/how-to-negotiate-a-buyer-rebate-with-a-realtor/) or make peace with the fact that you may have to foot the bill. After all, buyer’s agents gotta eat too. [Selling a House](https://blog.transactly.com/tag/selling-a-house) [Real Estate Tips](https://blog.transactly.com/tag/real-estate-tips) [Commission](https://blog.transactly.com/tag/commission) [Buying a house](https://blog.transactly.com/tag/buying-a-house) [Agents](https://blog.transactly.com/tag/agents) ## Similar posts Agents ### [What Does a Buyer's Agent Do?](https://blog.transactly.com/what-does-a-buyers-agent-do-1) Although technology has changed the way we start the buying process, buyer's agents are still important. What does a buyer’s agent do that has... Jacob Ferrer Feb 13, 2023 Real Estate Tips ### [How to Choose a Buyer's Agent](https://blog.transactly.com/how-to-choose-a-buyers-agent) The choices you make when buying a home will help you determine your financial future. Choosing a buyer’s agent can be tricky, but is critical in the... Jacob Ferrer Feb 15, 2023 Real Estate Tips ### [Should You Sign an Exclusive Buyer's Agent Agreement?](https://blog.transactly.com/should-you-sign-an-exclusive-buyers-agent-agreement) Should you sign an exclusive buyer's agent agreement? That's a common question for many home buyers. Deciding to sign an exclusive buyers agent... Madison Clifton Mar 12, 2019 ### Get notified with new real estate posts. Be the first to know about new real estate tech insights. 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