The real estate landscape changed drastically with the 2024 National Association of Realtors (NAR) settlement. In 2025, real estate commissions no longer follow the rules buyers and sellers once relied on.
Now, many home buyers and home sellers are left asking:
Who pays the real estate commission? How much is the agent’s commission? And can you avoid real estate fees altogether when buying or selling a dream home?
This updated guide breaks it all down—what’s changed, what buyers might owe their real estate agent, and the one way to skip commission costs entirely.
Who Pays Real Estate Commission Under the 2025 Rules?
Traditionally, the home seller pays the real estate commission for both their listing agent and the buyer’s real estate agent. The fee—usually 5% to 6% of the home’s sale price—is split between both the buyer’s agent and the seller’s agent and paid from the sale proceeds at closing.
In 2025, that model is changing.
Due to the NAR settlement, multiple listing services (MLS) can no longer advertise preset buyer’s agent commissions. Instead, the buyer’s agent’s commission fee must now be negotiated directly between the home buyer and their agent, often in writing before home tours begin.
That means both the buyer and seller now shoulder clearer responsibilities:
- The seller still pays their listing agent’s commission (negotiated via a listing agreement).
- The buyer may pay their own agent’s fee, either out-of-pocket, rolled into closing costs (if a lender allows), or by negotiating with the seller to cover it.
This change introduces more transparency, but also a potential cost shock for buyers not expecting to pay a real estate agent directly.
2025 Commission Calculator: New NAR Rules
What Did the NAR Settlement Change?
The settlement agreement reached between the NAR and several plaintiffs in 2024 transformed how real estate agents are compensated.
Here’s what changed:
- MLS platforms can no longer display commission offers to buyer’s agents.
- Buyers must sign a written agreement with their licensed agent before touring homes. This outlines services offered and agent compensation.
- Agent commissions are now off-MLS and fully negotiable.
Several large brokerages were affected, and while many local markets still follow traditional norms, the settlement ensures real estate agent commissions must now be discussed openly.
The upside: more transparency.
The downside: many buyers may not be prepared to pay a separate agent’s fee upfront.
How Does a Commission Split Work in 2025?
On average, total real estate commissions in 2025 are about 5.44% of the home’s sale price, split between the listing agent (seller’s agent) and the buyer’s agent.
Here’s what that looks like for a $300,000 home sale:
| Sale Price | Total Commission (5.44%) | Listing Agent Brokerage (2.77%) | Buyer Agent Brokerage (2.67%) |
|---|---|---|---|
| $300,000 | $16,320 | $8,310 | $8,010 |
But it doesn’t stop there. Both realtors typically split their commission with their brokerage, commonly at 60/40 or 70/30 splits, meaning agents take home significantly less than what’s shown above.
The commission percentage you pay can vary based on market conditions, the services offered, and the agent’s experience.
Pro Tip: Always confirm the breakdown of fees in writing before starting your real estate transaction, so you know exactly what services you’re getting—and paying for.
What Are the New Rules for Buyers?
As of 2025, home buyers must now:
- Sign a Buyer Representation Agreement upfront.
- Clearly understand the buyer’s agent commission they’re agreeing to.
- Negotiate directly with their own agents about the agent commission.
This fee may be:
- Paid out-of-pocket.
- Included in the purchase price (if permitted by the title company or lender).
- Covered by the home seller, if negotiated successfully.
These new rules aim to create a more informed buying experience, but they also mean buyers have to budget for yet another cost.
How the 2024 NAR Settlement Changed Real Estate
Old Rules
MLS platforms openly displayed buyer’s agent commission offers, typically 2.5-3% of sale price.
Buyers could tour homes with agents without signing formal representation agreements upfront.
Sellers typically paid both listing and buyer’s agent commissions through sale proceeds.
Commission structures were often unclear to buyers until closing. Limited negotiation discussions.
New Rules
MLS platforms cannot show buyer’s agent commission offers. This information is negotiated privately.
Buyers must sign written representation agreements before touring homes, clearly outlining agent compensation.
Buyers can pay their agent directly, negotiate seller coverage, or roll costs into financing (if allowed).
All commission structures must be discussed explicitly. Buyers understand exactly what they’re paying for.
The Commission-Free Alternative
Want to skip real estate commissions entirely? Sell directly to a cash buyer like iBuyHomes.
With iBuyHomes:
- No listing agent fees
- No buyer’s agent commissions
- No hidden real estate fees or closing costs
You receive a net offer, not a home’s sale price reduced by a 6% agent’s fee. That means more money in your pocket. On a $400,000 home, you could save up to $24,000.
There’s no need to steer clients, wait on potential buyers, or deal with realtors. As the seller, you skip the entire real estate transaction process—no seller’s agent, no flat fee negotiations, no delays.
Real Estate Has Changed—Don’t Overpay
In 2025, home sellers face more direct costs, while buyers may have to pay their own buyer’s agent. Every deal now involves more paperwork, more negotiations, and more uncertainty.
Why give up part of your home sale to cover agent commission? In today’s market, avoiding real estate agent commissions is the easiest way to save.
