Buying a home is one of the biggest financial decisions most people ever make. But let’s be real—it’s not just about picking a house you love.
It’s also about costs, contracts, paperwork, and, increasingly, figuring out who pays who. One piece that’s getting a lot more attention lately? The buyer’s agency fee.
You may have heard the term floating around—maybe from your real estate agent or in a conversation about recent housing market changes—but let’s break it down in plain language.
Because in 2025, how this fee works is shifting. And if you’re buying a home this year, it’s something you’ll want to get a solid handle on.
Key Highlights
- Buyer’s agency fees are now negotiable and more visible, due to the 2024 NAR settlement requiring signed contracts and removing MLS commission disclosures.
- Sellers can still pay the buyer’s agent fee, but they’re not required to—buyers may now need to cover it or negotiate it into their offer.
- Typical fees haven’t changed much—the average is around 2.37% in early 2025, but varies by home price and location.
- There are ways to save, like fee rebates, flat-fee agents, and discount brokerages—plus potential future options to finance fees.
So What Exactly Is a Buyer’s Agency Fee?
In simple terms, it’s the money paid to the real estate agent who helps you—the buyer—find and buy a home. This person isn’t just unlocking doors and texting you listings.
They’re negotiating deals, handling mountains of paperwork, scheduling inspections, and making sure deadlines aren’t missed.
Historically, that commission has been about 2.5% to 3% of the home’s sale price and has typically been paid by the seller as part of the total agent commission, as per HomeLight.
That total usually sits between 5% and 6% of the final home price and gets split between the buyer’s and seller’s agents. Let’s put that into perspective:
| Home Price | Total Commission (5.5%) | Buyer’s Agent Cut (2.75%) |
| $300,000 | $16,500 | $8,250 |
| $418,000 | $22,990 | ~$10,450 – $12,540 |
| $1,000,000 | $55,000 | $22,500 (at 2.25%) |
That fee covers a ton of legwork behind the scenes—and sometimes directly saves you money. A great agent might negotiate a lower sale price or uncover issues that you can ask the seller to fix before closing.
What Changed in 2024? Why It Matters in 2025
For decades, the real estate world operated under a pretty standard setup. Sellers paid both agents’ commissions, buyers rarely questioned it, and everyone just…went along with it.
But that model took a major hit in March 2024. After a string of lawsuits over alleged price-fixing and a lack of transparency, the NAR settled with plaintiffs, agreeing to pay out over $418 million and change the rules. Here’s what changed:
Key Shifts from the 2024 NAR Settlement
- Written Agreements Are Now Required: Your buyer’s agent must have a signed contract with you before they provide any services. That means you’ll see their fee and what they’ll actually do for you—up front.
- MLS Listings No Longer Show Buyer’s Agent Compensation: Sellers can’t advertise that they’ll pay your agent through the Multiple Listing Service. It’s now all negotiable—outside the platform.
These changes officially rolled out in July 2024, and their effects are really being felt in 2025.
Who Pays the Buyer’s Agent Fee in 2025?
Here’s where things get interesting. Sellers are still allowed to cover your agent’s fee—but they’re no longer obligated to offer that.
In practice, many still do, especially if they want to attract as many buyers as possible. But not all sellers will. So now, buyers are in one of three boats:
- Seller pays the buyer’s agent fee (still common, especially in competitive markets).
- Buyer pays out of pocket.
- Buyer negotiates with the seller to include the agent’s fee in the purchase offer.
Let’s say you’re buying a $418,000 home and your agent charges 2.37%. That’s $9,914. If the seller doesn’t cover it, you’ll need to either pay that upfront—or find a way to build it into your offer.
First-Time Buyers May Feel the Squeeze
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If you’re a first-time buyer—or just tight on cash—it’s worth noting how this impacts affordability. Take a $300,000 home.
At a 2.43% buyer’s agent fee (a typical rate for homes under $500K), you’re looking at $7,290. For someone already scraping together a down payment and closing costs, that extra fee can feel like a punch to the gut.
That’s why many industry pros worry the changes could hit lower-income and first-time buyers the hardest, especially if more sellers start refusing to cover the buyer’s agent fee.
Where Commissions Sit Now (Early 2025)
Despite the policy shakeup, buyer’s agent fees haven’t swung wildly. According to Redfin’s Q4 2024 report, the average buyer’s commission is now 2.37%, down only slightly from 2.45% a year earlier.
Bankrate backs that up, saying rates have “barely budged” since the summer of 2024. Still, there are some differences depending on market and price point:
| Home Price | Avg. Buyer’s Agent Fee | Estimated Fee |
| $300,000 | 2.43% | $7,290 |
| $418,000 | 2.37% | $9,914 |
| $1,000,000 | 2.25% | $22,500 |
Smart Ways to Save on Buyer’s Agency Fees
Don’t just accept the first number you’re quoted. You can negotiate—or at least explore options that give you more bang for your buck.
Practical Tips:
- Ask about fee rebates: Some agents offer cash-back incentives or partial refunds after closing. Example: SimpleShowing provides a 1.5% rebate, which could mean $6,270 back on a $418K purchase.
- Shop around: Don’t assume all agents charge the same. Interview a few, compare their fees and services.
- Consider flat-fee agents: Rather than a percentage, some agents offer a fixed price—say $5,000 to $15,000—regardless of the home’s price. This can be a win for buyers in higher price brackets.
- Use a discount brokerage: Platforms like Redfin or Clever operate with lower fees and may bundle services.
- Talk to your lender: While not yet widely available, there’s talk of allowing buyers to roll agent fees into their mortgages. It’s not the norm yet, but keep an ear out—especially if upfront cash is tight.
What’s Coming Next? Trends to Watch
While fees haven’t changed dramatically yet, the vibe is shifting—and that matters.
Some likely trends in 2025 and beyond:
- More competition = lower fees: With fees more visible and negotiable, agents may offer discounts to win clients.
- Bundled services: Some brokerages are bundling mortgages, agent services, and rebates to create more affordable options.
- Push to include fees in financing: There’s buzz around Freddie Mac and Fannie Mae eventually letting buyers roll agent fees into loans. That would ease upfront costs, especially for lower-income buyers.
The bottom line? Fees aren’t dropping like rocks, but buyers have more say than ever before.
Final Take
The buyer’s agency fee isn’t new—but how it’s handled in 2025 definitely is. Thanks to the NAR settlement, what used to be standard is now a case-by-case negotiation.
In most cases, sellers still pay your agent’s fee. But if they don’t, you’ll need to be ready—with questions, with negotiation strategies, and, ideally, with an agent who brings real value to the table.
If you’re buying a home this year, don’t just ask about square footage and school zones. Ask about fees. Ask how your agent gets paid. Ask if there’s wiggle room.
The market is evolving, and the buyers who do their homework—or read blog posts like this—are the ones who come out ahead.
References
- homelight.com – Do Sellers Pay the Buyer’s Agent Commission?
- nar.realtor – National Association of REALTORS® Reaches Agreement to Resolve Nationwide Claims Brought by Home Sellers
- investors.redfin.com – Redfin Reports Commissions Have Risen Slightly For Affordable Homes, Fallen Slightly For Expensive Homes, Since NAR Settlement Took Effect
- bankrate.com – What the real estate commission changes mean for homebuyers and sellers
