Who Pays Realtor Fees when Buying a House?

Buying a home is a complex process that every buyer naturally wants to get right the first time. A big part of that is understanding all the lesser costs of home purchase beyond the home itself. Escrow and downpayment are one category and closing costs – including realtor fees – come after the deal is closed.

One question that we often hear is “Who pays the realtor fees?”

With both buyer and seller hiring realtors or real estate agents, why pays the realtors for all their help along the way? We’re here to answer that today.

Sellers Usually Pay Realtor Fees

Most of the time, the seller of the house pays realtor fees. The realtor fees are always a percentage of the home’s final sale price. The realtor’s 6% is taken out of the seller’s final revenue from the home sale. When the seller is paid for the house, they are then responsible for paying both the buyer and seller realtors involved in the home sale.

In most home purchases, the seller will pay the realtors without mentioning it to the buyers.  The buyers are free to pursue their goals of taking over and then moving into the home they just bought. This leaves the seller covering both realtors at whatever home price and percentage determine their fee.

Realtor Fees Can Be a Negotiation Item

Of course, everything is on the table when a home negotiation is ongoing. Before the purchase is drafted and signed, the buyer and seller may offer small conveniences and price savings to get what they want from the bargain. The buyers, for example, may offer to pay for their own or both realtor fees as a favor to the seller for another concession in the purchase agreement.

Flat Fee Realtors

Lastly, there’s a different alternative – flat-fee realtors. No matter who is paying the realtors, everyone benefits from a predictable and lower cost. Flat-fee realtors don’t worry about the home’s final cost – providing the same reliability and service without the variable pricing aspect.

Contact us for more helpful information on realtors or to consult on your own home market plans.