Buyer's Agent Commission Calculator
Estimate buyer's agent commission under the post-NAR settlement rules effective August 2024 — when buyers must contract with their own agent.
How the NAR Settlement Changed Buyer's Agent Fees
In March 2024, NAR (National Association of Realtors) settled the Sitzer/Burnett class-action lawsuit for $418M and agreed to two major rule changes effective August 17, 2024: (1) MLS listings can no longer advertise compensation to the buyer's agent — that became an off-MLS negotiation. (2) Buyers must sign a written Buyer Agency Agreement BEFORE touring homes, disclosing exactly what the buyer's agent will be paid and by whom.
The practical effect: buyer's agent commissions are now openly negotiable, and the seller is no longer expected (or required) to cover them. Most deals still flow through seller concessions, but the door is open for buyer-paid models — and direct fee-for-service models are growing. Source: NAR Settlement materials, Sitzer/Burnett documents (2024). Last updated: May 2026.
Three Ways Buyer Commission Gets Paid in 2026
(1) Seller concession (most common): Buyer offers to pay $425K, asks seller to credit $10,625 (2.5%) toward buyer agent commission at closing. Effectively the seller still pays — but it's now negotiated up-front, not invisible.
(2) Buyer pays out of pocket: Buyer pays the agent at closing from their own funds (cannot be financed into the mortgage). Rare because few buyers have spare cash on top of down payment and closing costs.
(3) Hybrid: Some buyer agency agreements specify a flat fee ($5K-$10K) or hourly billing — buyer pays the difference between the agreed fee and any seller concession received.
Negotiating Buyer's Agent Commission
Pre-2024, buyer commission was 'set' at 2.5-3% nationally with little negotiation. Post-settlement, here are the real numbers:
| Scenario | 2026 Typical Range |
|---|---|
| Full-service agent, average market | 2.5-3.0% |
| Full-service agent, hot market | 1.5-2.5% |
| Limited-service / discount | 1.0-2.0% or flat $3K-$8K |
| Hourly fee | $150-$300/hr |
| Investor / cash buyer rates | 1.0-2.0% (rep is easier) |
Common Buyer Agency Agreement Terms
(1) Term: 30-90 day exclusive period typical. (2) Geographic scope: Specific county/metro — buyer can use another agent outside that area. (3) Compensation: Must be explicit (percentage, flat fee, or hourly). (4) Source of funds: Specifies whether seller concession is acceptable. (5) Termination: Mutual agreement or specific cause. Most disputes happen here — read this section carefully.