Do Buyers Pay Real Estate Commission Now?

Sometimes — Here’s What Changed

Buyers do pay real estate commission now because they hold the contractual responsibility to do so due to buyer broker agreements. However, homebuyers can transfer the cost to the seller by stating so in their purchase agreement. This recent change opens many strategic doors and the opportunity to lower homebuying costs for homebuyers who hire the right agent.

Why Buyers Are Suddenly Hearing About Commission Fees

In the early 2020s complex, federal class-action litigation occurred. The plaintiffs were recent home sellers who successfully argued the requirement that home sellers contractually commit to a fee amount to be offered to a cooperating broker is a violation of U.S. antitrust laws. A cooperating broker is a broker representing a homebuyer and not the seller.

Upon receiving the verdict, the National Association of REALTORS® sought a reduced penalty by entering a settlement which included changing its business practices. Today, home sellers no longer commit to offering buyer agent compensation at the time of listing their home for sale.

How Buyer Agent Commission Worked Before 2023

The Traditional “Seller Pays” Model

Before the litigation homebuyers and their agents did not have a reason to have a conversation about compensation. In the past home sellers offered a commission fee which was published in the MLS. All cooperating brokers had the opportunity to earn the stated commission by bringing a buyer who purchased the home. That guarantee of seller committed compensation no longer exists, so buyer’s agents get a contractual commitment from their client instead. Thus the buyer broker agreement was introduced in 2024.
Homebuyers had never thought about buyer agent commission fees because there was no direct obligation for the homebuyer to pay a fee. Instead, in nearly all instances buyer agents earned what the seller of a specific property was offering as a cooperating broker commission fee.

Why Buyers Didn’t See the Cost — Even Then

In the past homebuyers did not have upfront and obvious information about the cost for their agent’s services. Typically, offers of compensation were not displayed to the public.

What Changed in 2023–2024 With Buyer Agent Fees

To accommodate the NAR settlement states started to pass laws or regulations on their real estate industry requiring buyer’s agency agreements and removing offers of buyer broker compensation from MLS databases and websites.

Buyer Agent Agreements Explained

A buyer agency agreement is a contract between a real estate broker, real estate agent, or a real estate sales person and a client. There are several key pieces of information in a buyer agency agreement including:

• Term: A clear start date and expiration date
• Scope: A scope describing the location or type of real estate purchase it covers
• Exclusivity: Whether it is an exclusive or non-exclusive representation (very typical it is exclusive)
• Compensation: The rate or amount to be provided to the buyer broker

The triggering event for when a buyer signs a buyer agent agreement varies. States have passed their own unique laws or regulations. In Indiana where I am a real estate agent the state law including buyer agency agreements left the triggering event vague. However, in that instance the National Association of REALTORS® has stated a written buyer agency agreement should be signed before showing a client a property.

The buyer broker agreement is also used to state the real estate commission for buyers charged by a specific agent or brokerage. The rate is not fixed or set by the industry, state law, or any regulations.

Why Compensation Is No Longer Guaranteed in the MLS

The National Association of REALTORS® settlement in the Sitzer-Burnett case required that the cooperative compensation field be removed from the MLS. Additionally, home sellers were relieved from committing to an offer of cooperating broker compensation or buyer’s agent compensation in order to list their home in a MLS.

Buyers should discuss buyer broker fees before committing to a real estate agent. The amount you agree to is your responsibility. Not all real estate agents charge the same buyer broker compensation fee. For example, my Northwest Indiana buyer agent fees are less than what is customarily quoted in my region by other agents.

Do Buyers Pay Their Agent Directly?

It is possible that a buyer pays their agent directly, but it remains rare despite all of the recent changes.

When the Seller Pays the Buyer Agent

Currently, the most common outcome is the buyer is extracting the cost of their buyer’s agent fee from the seller within the offer. Homebuyers can state in the purchase agreement that the seller will pay the buyer’s agent fee. There are other options, too. I explain those and the strategic benefits to you in this article. To sum it up, the responsibility stays with the buyer, but the seller fund it directly.

When the Seller Pays Part — or None — of the Fee

Homebuyers can seek the entirety or a portion of what they owe their broker from the seller, but sellers do not have to agree. Sellers can counter the term asking for the buyer broker compensation with a lesser amount or reject the offer altogether. Gaps in what a buyer owes their broker and what a seller is willing to pay can occur. Filling the gap remains the buyer’s obligation.

Homebuyers need to understand negotiation matters. This is why shopping around for the best agent matters.

First, the less you need to ask for the better off you will be. This is why I remove unnecessary costs for my clients who hired me for Northwest Indiana buyer representation with my lower buyer agent commission fees. This helps my buyers better compete.

Secondly, a skilled agent can find ways to pull out other money from the seller to offset other costs or the commission fee. And lastly, a good negotiator can help you find the seller’s pain points and then offer non-monetary beneficial terms in exchange for monetary concessions to make your home purchase cost less.

Can Buyers Negotiate Their Agent’s Commission?

Yes — Buyer Agent Fees Are Negotiable

The real estate commission for buyers is negotiable. This means there is no law, rule, or regulation by a governing body dictating a required buyer broker commission fee. Yes, a buyer’s agent fee is negotiable, but that doesn’t mean the service provider has to have the conversation.
Homebuyers should shop around and diligently select their buyer’s agent. Later in this article I have some helpful tips for finding the best buyer’s real estate agent for you.

Why Some Buyer Agents Now Charge Higher Fees

Buyer agent commission fees have been rising — and for many buyers, that trend is likely to continue. There are a few key reasons why this is happening.

Before recent industry changes, buyer agent compensation was typically set by what a seller offered in the MLS. Buyer agents rarely asked buyers to pay more than that amount, in part because formal buyer agency agreements were uncommon. Asking a buyer to commit to a higher fee would have been unusual and often uncomfortable.

Today, buyer agency agreements are standard. That change has shifted how compensation is discussed. Buyers are now asked to agree to a fee upfront, and those fees can vary widely from one agent to another. In some cases, buyers are being quoted commission rates that are meaningfully higher than what was commonly offered just a few years ago.

At the same time, widely used home search websites have reshaped the way buyers are connected with agents. Although free for consumers, these platforms often charge agents steep fees for buyer leads, which are frequently offset by higher buyer-agent commissions.

Homebuyers can often reduce their costs by working directly with an agent, rather than being routed through a third-party platform.

As lead costs increase, a cycle can form: higher referral fees lead to higher commission demands, which can ultimately increase the cost of buying a home.

For homebuyers, the takeaway is simple: fees are no longer standardized, and they matter more than ever. Buyers who understand how compensation works — and who compare fee structures — can avoid unnecessary costs and put themselves in a stronger position when making an offer.

How Buyer Agent Fees Affect the Price You Pay for a Home

An unnecessarily high buyer agent commission fee adds unnecessary expenses to your home purchase and can put you in a less competitive position.

Why Commission Costs Influence Offers

If you, like nearly all homebuyers, will ask for the seller to pay your buyer’s agent commission fee, a higher fee adds costs and creates disadvantages for you. Sellers will only “give-in” so much. Burning up all of the seller’s compromise to fund a single bucket is disadvantageous to you.

Take a look at this example where in each scenario the buyer offers a $400,000 purchase price and in each example the seller receives a net offer of $388,000. The buyer with a lower buyer agent commission fee can ask for a closing cost concession further reducing the buyer’s cash needed to close while still making the same net offer to the seller as a buyer with asking for a higher buyer agent commission fee.

In another example we see that the purchase price is reduced by the difference in the rate of the buyer’s real estate commission fee. The Buyer #3 with a 1% buyer agent commission fee is able to offer $8,000 less than for the home while still delivering the same net proceeds to the seller. That $8,000 difference at 6.00% interest is $47.96 per month and equates to over $17,000 over the course of a 30-year term mortgage.

Why Lower Buyer Agent Fees Can Improve Your Position

A lower buyer agent commission fee can improve your position in three ways which gives you a strategic advantage when buying a home.

First, a lower buyer agent commission fee will make buying a home more affordable for you. If you are going to pay your buyer broker fee yourself the lower the fee is the less cash you will need to bring to the closing table. Alternatively, if you are like most homebuyers and will ask the seller to pay your buyer broker commission fee, the less you ask for can open the door for offering a lower purchase price even in a competitive situation.

The second reason a lower buyer agent commission fee helps you is by providing you with more negotiation flexibility. By not asking the seller for anything related to your buyer broker’s compensation or by asking for less than other buyers you may be able to negotiate for other items. Those could include a closing cost credit to reduce your closing costs or other purchase terms more favorable to you.

Lastly, some home sellers are stubborn about paying the buyer broker compensation. By either not asking the seller to pay anything or reducing it to a less than customary rate the seller will be more pleased to accept your offer versus another competing offer.

Homebuyers should clearly understand the buyer agency agreement and fee agreement a buyer’s real estate agent puts in front of them before touring a home. Below is a guide of what you should watch for.

Questions to Ask a Buyer’s Agent About Fees and Their Buyer Agency Agreement

Find out answers to these questions:

• Buyer Agent Commission Fee: What is the real estate commission fee you will be charged?
• Term: What is the length of time of the agreement?
• Scope: What real estate is it applicable to? And, if you are looking for homes in a wide-ranging area make sure the agent truly can accommodate assisting you across all geographic areas included.
• Retainer: Do you owe the agent a retainer? If so, how much is that, and does the agent get to collect any of it even if you do not buy a home?
• No Purchase: What do you owe the agent if you never make a purchase?
• Termination: What is the process to terminate the buyer broker agency agreement?

Why Transparency Matters More Than Ever

One of the effects of the recent litigation was to help restore the fact real estate agents are a fiduciary to their clients. A real estate agent should be able to clearly explain what services they will provide to their client and what the client will be charged for those services.

Homes are expensive, and a buyer’s home purchase is a major event in their life. Real estate agents need to deliver for their clients. That starts on the first day upon entering the buyer broker agreement.

What This Means for Homebuyers in Northwest Indiana

I work as a real estate agent in Northwest Indiana for homebuyers and sellers. I am familiar with the recent changes and how things are playing out in Indiana.

How Buyer Agent Compensation Is Playing Out Locally

In Northwest Indiana it is typical for homebuyers to ask the seller to pay the majority of what they owe their buyer broker. The rate is most commonly 2.50$ to 3.00. Additionally, many sellers are willing to cover this cost–or most of the cost–at this time. However, it does affect what the homebuyer pays for the home. Also, some home sellers are countering offers with a lower contribution for the buyer broker commission.

Why Choosing the Right Buyer’s Agent Matters More Now

First and foremost every homebuyer should be seeking out expert real estate agents who are offering homebuyers an attractive buyer broker commission fee. If affordability and your money matters to you, start reducing your costs by working with a buyer broker with an attractive, competitive buyer broker compensation fee.

Secondly, look for experience. Most transactions take problem solving and critical thinking skills to move everything along smoothly. The best agents are those that can see the three or four moves ahead on the chess board. That ability only comes from experience. Don’t only ask about years of experience. Most real estate agents sell fewer than eight homes annually. Ask how many transactions the agent has participated in.

Talk With a Buyer-Focused Agent Before You Sign Anything

Most homebuyers get paired with their real estate agent in the worst way possible. They get onto one of the national consumer facing real estate websites, look at homes, eventually ask to see one of those homes, and they get sold off to a real estate agent who is paying for that platform. Then, the homebuyer, you, gets hit with a big 2.5% – 3.5% buyer broker compensation agreement to compensate for the cost of procuring the lead.

Instead, take my advice about how to find the right buyer real estate agent for you.

Get Clear Answers About Fees, Offers, and Strategy

First, start with a conversation. Contact some real estate agents in the area you are targeting. Have a conversation and discuss the following.

First, ask if they work with homebuyers? If so, what percentage of your business has been homebuyers over the last 12 months? (Listen for at least 40%)

Secondly, ask if they service the areas where you want to look. Ask them where their office is located and ask what city, town, or if a major metro area what neighborhood they live in. If the answers to those indicate the agent’s workflow or lifeflow aren’t near where you want to buy, it’s unlikely the agent will be a good fit for you.

Third, ask about their buyer’s commission fee. You should get a clear, concise answer to this question. Also, confirm if the agent has a retainer fee or is owed anything even if you do not purchase a home.

Lastly, if the conversation is going well, let the agent ask you questions. Listen for the agent to ask you questions about the home you hope to purchase. And listed for the agent to ask clarifying questions. For example, I often ask homebuyers if they need a big yard, average yard, or a small yard. They might say back, “I have dogs, so an average yard.” I often respond wanting to know how many dogs, their size, and if you need a fenced yard or the ability to fence in the yard.

Do Buyers Pay Real Estate Commission Now? — FAQs

Do buyers have to pay their real estate agent now?

Yes. Today, buyers agree to a buyer-agent fee upfront with a buyer agency agreement. However, most homebuyers are asking the seller to pay some or all of what is owed to their buyer broker.

Can the seller pay my buyer agent commission?

Yes. Homebuyers can include in their purchase agreement that the seller will pay what the buyer owes the buyer’s broker.

What if the seller refuses to pay the buyer agent fee?

In the instance the seller refuses to pay the buyer broker the buyer has several choices. Restructure the offer to extract the cost of the buyer broker commission fee with a seller provided closing cost credit. Or, the buyer can pay it themself and offset the cost by offering a lower purchase price or making a lesser down payment. Lastly, the buyer can walk away from the home altogether..

Why does the buyer agent fee affect how competitive my offer is?
In the instance you ask the seller to pay your fee, a lower fee request will increase the seller’s net proceeds allowing you the opportunity to offer a lower purchase price, ask for more concessions elsewhere, or stand out in a competitive situation.

Are buyer agent commission rates fixed?

No. Buyer agent commission fees are not fixed. However, in a local area there is likely a consistent range of buyer agent commission fees amongst local agents. Homebuyers can always attempt to negotiate the buyer agent commission fee, too.

Does paying a lower buyer agent fee mean less service?

Not necessarily. Fee structure and service level are not the same thing. Buyers should evaluate experience, negotiation ability, and representation — not just the percentage. We offer a full-service homebuyer experience with our low buyer agent commission fee in Northwest Indiana.

Conclusion: What Indiana Homebuyers Should Take Away

Buyer agent commission in Indiana works differently than it did just a few years ago, and that shift matters for anyone planning to buy a home. Today, real estate commission for buyers in Indiana is something you agree to upfront—and it can directly affect your offer, your negotiations, and your total cost at closing.

The good news is that buyer agent fees in Northwest Indiana are not fixed. Buyers who understand how compensation works, compare fee structures, and choose strong representation can avoid unnecessary costs while still receiving full service and skilled negotiation.

If you’re considering buying a home and want clear guidance on buyer agent commission in Indiana, we’re here to help. We provide buyer representation in Northwest Indiana with a transparent fee structure designed to help buyers compete and keep more money in their pocket.

If you’d like to ask questions, understand your options, or start searching homes for sale, contact us with the form below or call or text us at (219) 309-6098.

Alternatively, if you are more of the DIY type preferring to explore on your own you can search, save, and share on my website all of the homes for sale in Northwest Indiana.

The right buyer representation—and the right fee—can make a meaningful difference in your home purchase.