If you are buying your first home in 2026, the way real estate agents get paid works differently than it did just a couple of years ago. A landmark 2024 legal settlement involving the National Association of Realtors changed the rules around commissions, and the biggest practical effect lands squarely on buyers: you now sign a written agreement with your agent before you tour homes, and the question of who pays that agent is something you negotiate rather than something that happens quietly in the background. This page is the starting point — it explains what changed, who pays for what, and how to keep these costs from eroding your budget, with links to deeper guides on each piece.
What actually changed in August 2024
For decades, the seller typically paid a total commission of around 5% to 6% of the sale price, which was then split between the seller’s listing agent and the buyer’s agent. Buyers rarely thought about it because the money came out of the seller’s proceeds. A series of antitrust lawsuits challenged that structure, and the resulting settlement — which took effect in August 2024 — introduced two changes that matter to you as a buyer.
- Commission offers can no longer be advertised on the MLS. Sellers and their agents can still offer to cover the buyer’s agent, but that offer is no longer broadcast on the multiple listing service the way it once was. Compensation is now an explicit conversation rather than an assumed default.
- Buyers must sign a written agreement before touring homes. Before an agent shows you a property, you and that agent must agree in writing on how they will be paid and how much. This is the buyer-broker agreement, and it is now a required step rather than an optional formality.
None of this means commissions went up or down by law — they were always technically negotiable. What changed is transparency: the costs are now visible and on the table, which is good for informed buyers and confusing for everyone else. For the full background on the lawsuits and the rule changes, read our detailed explainer on the NAR settlement.
Who pays the buyer’s agent now?
This is the question every buyer asks, and the honest answer is: it is negotiable, and there are three possibilities. First, the seller can still offer to pay your agent — this remains common, because sellers want to attract buyers and their agents. Second, you can ask the seller to cover it as part of your offer, similar to asking for other seller concessions. Third, if the seller will not pay, you may owe your agent directly, funded either out of pocket or, in some cases, folded into your financing.
Because the money can now come from any of these directions, the amount your agent charges — and who ultimately pays it — is something to pin down early, ideally before you fall in love with a house. Knowing the arrangement up front keeps a surprise fee from appearing at the closing table.
How much do agents actually cost?
Buyer-agent compensation still tends to fall in the 2% to 3% of purchase price range, though it is now openly negotiable and some agents offer flat fees or reduced rates. On a $350,000 home, 2.5% works out to roughly $8,750 — real money that belongs in your planning from day one. Whether that comes from the seller, from you, or is split, it affects how much cash you need to bring to close. Our full breakdown of how much a realtor costs walks through typical rates, flat-fee models, and what you get for the money.
The buyer-broker agreement you’ll now sign
The written agreement is where the terms live: how your agent is paid, how much, for how long the agreement lasts, and whether it applies to specific homes or every home you look at. Some are non-exclusive and short-term; others lock you into one agent for months. Because you sign this before touring, it is worth reading carefully — the length of the term and the exclusivity clause are the two things most worth negotiating. We cover exactly what to look for, and what to push back on, in our guide to the buyer-broker agreement.
How to keep agent costs from blowing your budget
A few practical moves protect first-time buyers under the new rules. Interview more than one agent and ask directly how they are compensated — rates and terms genuinely vary now. Negotiate the term and exclusivity of the buyer-broker agreement rather than signing the first draft. When you write an offer, consider asking the seller to cover your agent’s fee as a concession, which keeps that cost out of your cash-to-close. And always confirm the arrangement in writing before you start touring, so nothing about who-pays-whom is left to assumption.
Whatever you negotiate, fold the figure into your overall cash needs alongside your down payment and closing costs. If you are mapping out every dollar for the purchase, our first-time home buyer checklist puts agent costs in context with the rest of the process.
Buyer agent commission FAQ
Do buyers have to pay their agent out of pocket now?
Not necessarily. Sellers can still offer to pay the buyer’s agent, and many do. You can also ask the seller to cover it in your offer. Paying out of pocket is one possibility among several, not a new default — the key is agreeing on who pays before you tour homes.
Is the buyer-broker agreement required?
Yes. Since August 2024, you must sign a written agreement with an agent before they show you homes. The terms — amount, duration, and exclusivity — are negotiable, so treat it as a document to review rather than a formality to rubber-stamp.
Did the settlement make buying a home cheaper?
It made agent compensation more transparent and more negotiable, which can lower costs for buyers who negotiate. It did not set new fixed rates. Whether you save depends on how you handle the agreement and your offer — which is exactly why understanding the rules matters.
Can agent costs be included in my mortgage?
Agent commissions are not rolled into the loan the way closing costs sometimes are, but if the seller pays your agent as a concession, that cost stays out of your pocket entirely. Talk to your lender and agent about the most efficient structure for your situation before you write an offer.