How U.S. Homebuyers Can Win On Real Estate Agent Fees (Without Losing The House)

How do real estate commissions work for buyers in the United States after the NAR changes?

After the NAR settlement, buyer agents in the United States typically get paid under a written agreement with the buyer, not automatically via MLS offers of compensation. You can agree to pay your agent directly, ask the seller to cover part or all of the fee as a concession, or use a mix of both, as long as your contract and lender allow it.

In practical terms, the "3 percent to the buyer's agent by default" model has largely disappeared from MLS displays, but commission amounts remain negotiable in every transaction. State law and federal laws like the Real Estate Settlement Procedures Act (RESPA, 12 U.S.C. 2601) still govern how and when commissions can be paid and prohibit kickbacks for referrals.

Typical commission structures in 2026

• Percentage-based fee - Often 2 to 3 percent of the purchase price, negotiated in your buyer agreement.
• Flat fee - A set dollar amount (for example, USD 7,500) for representation through closing.
• Hybrid - A percentage-based commission with a cap (for example, 2.5 percent up to USD 15,000 max).
• Hourly or unbundled - You pay by the hour or per task (offer drafting, negotiation, inspection support).

Who can legally pay the buyer's agent?

• The buyer - Under your buyer representation agreement, you are the primary party responsible.
• The seller - Via a seller concession or negotiated term in the purchase agreement that your lender allows.
• The listing broker - In some states and brokerages, a portion of the listing commission can still be shared with the buyer's broker, but it is no longer assumed or advertised on the MLS in the same way.

Key legal players and rules

• State real estate commissions (for example, California Department of Real Estate, Texas Real Estate Commission, New York Department of State - Division of Licensing Services) license agents and enforce rules on agency, disclosures, and fees.
• RESPA and CFPB regulate settlement services, ban kickbacks, and require clear disclosures of who pays what at closing (see your Closing Disclosure form).
• State agency statutes define duties like loyalty, confidentiality, and disclosure once you sign a buyer agreement.

How can a buyer legally get the seller to pay their agent's fee?

You can usually get the seller to pay your agent's fee by writing it as a seller concession or closing cost credit in your purchase offer, while still meeting your loan program's limits on concessions. The key is to keep the total economics acceptable to the seller and compliant with your lender's underwriting rules.

Instead of "seller pays buyer's agent 2.5 percent," modern offers often say "seller to credit buyer X percent or USD Y toward allowable closing costs and prepaid items," which can include your agent's fee if your lender agrees. Your agent and lender must coordinate so the credit is structured in a way the underwriter will approve.

Step-by-step: Writing offers that ask the seller to cover your fee

1. Confirm lender limits on concessions.
   • Conventional loans often cap seller concessions at 3 to 9 percent of price, depending on down payment.
   • FHA typically allows up to 6 percent; VA generally allows up to 4 percent plus some costs.
   • Ask your loan officer: "What is the maximum seller credit I can receive on this price and program?"
2. Decide your agent's fee structure first.
   • Example: You agree to pay your agent 2.5 percent, capped at USD 12,000.
   • Your buyer agreement should say what happens if the seller pays some or all of it.
3. Translate the fee into a seller credit amount.
   • On a USD 400,000 home at 2.5 percent, the fee is USD 10,000.
   • Your offer might state: "Seller to credit Buyer at closing the sum of USD 10,000 toward Buyer's closing costs and prepaid items."
4. Work with your lender on line-item treatment.
   • Your Closing Disclosure may show your buyer-agent fee as a buyer cost, then offset by the seller credit.
   • The lender must confirm the credit does not exceed allowed limits and that you have enough actual costs to absorb it.
5. Price the offer competitively.
   • Sellers care about their net after credits.
   • Sometimes you raise the purchase price slightly to offset the credit, as long as the property still appraises.

Offer language examples (for concept only)

• Percentage credit: "Seller to provide a credit to Buyer at closing in an amount equal to 2.5 percent of the purchase price for Buyer's closing costs and prepaid items, subject to Buyer's lender approval."
• Flat credit: "Seller to credit Buyer USD 10,000 at closing for Buyer's closing costs and prepaid expenses, subject to lender approval."

How to avoid losing the house while asking for concessions

• Keep it simple. Use one clean seller credit line instead of complex commission language that spooks sellers or underwriters.
• Adjust other terms. You can shorten inspection periods, increase earnest money, or accept some repairs "as is" to offset the ask.
• Know the market. In a hot seller's market, you may trade some or all of the concession ask for winning the bid. In a balanced or buyer's market, you can often push harder.

What should you look for in a buyer representation agreement before you sign?

You should review how long the buyer agreement lasts, what fee you owe, when you owe it, and whether you still owe money if you buy without that agent. Any minimum or "make-up" commission, long protection period, or unrestricted dual agency is a red flag that you should negotiate or walk away from.

Because these contracts are now mandatory in many states before showings, they have quietly become some of the most important documents in a U.S. home purchase. Read them the same way you would read an employment contract or business lease: slowly, with questions and a willingness to change language.

Key business terms to check

• Term / duration
  • Shorter terms (30 to 90 days) give you flexibility.
  • Very long terms (6 to 12 months) reduce your leverage if the relationship sours.
• Exclusivity
  • Most agreements are exclusive - you must work only with that agent in a defined area and price range.
  • Ask for carve-outs if you are already working on a specific new-construction community or FSBO on your own.
• Commission amount and structure
  • Look for a clear percentage or flat fee, plus any caps.
  • Avoid vague language like "a customary commission as determined by Broker."
• Who pays
  • The contract should state that the buyer is ultimately responsible but that the agent will seek payment from the seller or listing brokerage if possible.
  • Good language: "Any amounts paid by seller or listing broker shall be credited against the fee owed by Buyer."

Red flag clauses to watch for

• Minimum or "make-up" commission
  • Example: "If amounts paid by any seller are less than 2.5 percent, Buyer shall pay the difference."
  • Decide if you are comfortable guaranteeing that minimum, or negotiate a cap by price or total dollars.
• Payment even if you find the home yourself
  • Some contracts say you owe the commission whether you buy through the MLS, a builder, FSBO, or directly from a friend.
  • If you want flexibility, carve out specific properties or categories where no commission is owed.
• Protection period traps
  • Protection periods (for example, 60 to 180 days) can require you to pay commission if you buy a home your agent showed you shortly after the contract ends.
  • Narrow the protection list and duration, and require the agent to give you a written list of protected properties.
• Dual agency or "transaction brokerage" without limits
  • Dual agency means one brokerage or agent represents both sides, which limits how much they can advocate for you.
  • If allowed in your state, you can require written consent for each property or opt out entirely in the agreement.
• Non-refundable retainers or cancellation fees
  • Some brokerages charge an upfront fee or cancellation charge if you do not buy.
  • Ensure the amount is modest, tied to actual services, and clearly creditable at closing.

Negotiation tips before you sign

• Interview at least two agents and compare their contracts side by side.
• Ask for a written summary of how they expect to be paid and how much they expect the seller to cover on typical deals.
• Request specific edits, not just "can you make this better." For example: reduce term to 90 days, cap fee at USD 12,000, shorten protection period to 60 days.
• Consider having a real estate attorney review the agreement, especially in high-priced markets like California, New York, or Massachusetts.

How can you negotiate your buyer agent's fee without losing the house?

You negotiate your agent's fee at the very start of the relationship, before you fall in love with a specific property, and lock it into the buyer agreement with clear caps and structures. By separating fee talks from the heat of an offer negotiation, you keep your agent motivated to help you win while still protecting your bottom line.

Once you are actively bidding on a property, trying to re-trade your agent's commission in the middle of the deal can damage trust and lead to rushed, bad decisions. Set the economics early, then focus on winning the property with a clean, competitive offer that fits the plan you already agreed to.

Common fee negotiation strategies

Timing your negotiation

• Before showings
  • Have a direct conversation: "I want to hire you, and I also need predictability on fees. Can we agree to [structure]?"
  • Agents are more open when they are competing for your business and there is no specific deal yet.
• Before writing an offer
  • If you forgot to address fees, pause: "Before we write, I want clarity on your fee and how much we will ask the seller to cover."
  • Get an email summary of the agreement and update the written contract if needed.

What not to do if you want to keep your leverage

• Do not wait until your offer is accepted to ask your agent to slash their fee at the last second.
• Do not threaten to walk mid-deal unless you truly intend to; trust breakdown can cost you the house.
• Do not run "auction" style negotiations between agents once one has already invested significant time; it can backfire if they decide to drop you.

Example: Putting it all together

• You agree in writing: 2.5 percent, capped at USD 10,000, buyer responsible, with seller credits applied first.
• You then instruct your agent and lender: "On most offers, I want to request a seller credit equal to your fee, as long as my program allows it."
• On a competitive house, your agent advises: "To win, we should drop the seller credit or reduce it; here is how that affects your cash and our fee." You decide based on total cost vs odds of winning.

What are the legal risks if you buy a home without an agent (DIY buying)?

Buying without an agent can save some or all of the typical 2-3 percent buyer-side fee, but it shifts legal and practical risks onto you, especially around contracts, inspections, disclosures, and fair housing issues. In many markets, sophisticated DIY buyers pair a real estate attorney or transaction coordinator with a limited-service or no-agent approach to reduce risk.

The more complex the transaction or the hotter the local market, the more dangerous a pure DIY approach becomes. You may miss critical deadlines, negotiate poorly on repairs, or fail to spot title or disclosure issues that cost far more than the fee you saved.

Major risk categories in DIY purchases

• Contract and contingency risk
  • State-approved forms (often created by Realtor associations) are dense and deadline-driven.
  • Missing a contingency removal date can make your earnest money non-refundable or lock you into a bad deal.
• Inspection and repair negotiations
  • You must understand what is a serious defect vs cosmetic and how to document repair requests.
  • Mis-handled negotiations can lead to losing the deal or accepting hidden liabilities.
• Disclosure issues
  • Sellers must comply with state-specific disclosure statutes (for example, California Civil Code sections 1102 et seq. on Transfer Disclosure Statements).
  • You must know what is missing, how to request it, and when a non-disclosure gives you an exit right or damages claim.
• Fair housing and discrimination pitfalls
  • Communications with sellers and listing agents are still subject to the federal Fair Housing Act and state equivalents.
  • Well-meaning "love letters" or screening questions can raise legal concerns.
• Title, survey, and association risk
  • Reading a title commitment, restrictive covenants, or HOA documents without help can lead to surprises on use, rentals, or assessments.
  • Boundary or easement issues often surface only in professional review.

Cost and risk comparison: agent vs DIY + lawyer

When DIY buying makes the most sense

• You are an experienced investor familiar with local contracts and closing customs.
• The deal is simple (for example, cash purchase of a condo in a building you already own in).
• You hire an attorney or experienced transaction coordinator to check your work.

When DIY buying is especially risky

• Complex properties: rural land, shared wells, septics, mixed-use, or large HOAs.
• Hyper-competitive markets where strategy and relationships drive winning bids.
• Cross-state purchases where you do not know local statutes, timelines, or standard forms.

How do closing costs and commissions typically break down in a U.S. home purchase?

In a typical financed U.S. home purchase, buyers pay 2 to 5 percent of the purchase price in closing costs, plus any portion of the buyer-agent fee not covered by the seller. Sellers usually pay title transfer costs, their own agent's fee, and other sale costs, but these customs vary by state and are negotiable.

The Closing Disclosure (CD), provided under the Truth in Lending Act (TILA) and RESPA rules and enforced by the Consumer Financial Protection Bureau (CFPB), gives you a line-by-line breakdown at least three business days before closing. By that point, you should already have aligned your buyer agreement, seller credits, and lender requirements so there are no surprises.

Typical buyer costs on a USD 400,000 purchase

Note: Many of these costs can be partly or fully offset by seller credits, within your loan program's limits.

Typical timeline for a financed purchase

• Pre-approval: 1-7 days with a lender.
• Home search: Highly variable (weeks to months).
• Offer to acceptance: 1-7 days in most markets, longer in negotiations.
• Inspection period: Often 5-10 days under state forms.
• Loan underwriting and appraisal: 2-4 weeks.
• Total contract-to-close period: Commonly 30-45 days.

When should a U.S. homebuyer hire a lawyer or other expert?

You should consider hiring a real estate lawyer when the transaction is complex, high-value, cross-state, or when you are modifying standard forms or doing any DIY elements. Even in states where attorneys are not customary for simple deals, a few hours of legal review can catch fee traps or contract risks that agents are not licensed to address.

In several states, such as New York, New Jersey, Massachusetts, and many parts of the Midwest, attorney review is standard on residential deals. Elsewhere, lawyers are more common in disputes, new construction, or for customizing investor or luxury transactions.

Situations where a lawyer is strongly recommended

• You are buying without a full-service agent or are heavily modifying a buyer agreement.
• The property has unusual features (private roads, shared driveways, water rights, tenants in place).
• You are purchasing out of state or through an entity (LLC, trust, or corporation).
• There is any sign of dispute: boundary, title defect, unclear easement, or seller non-disclosure.

Other experts who can protect you

• Home inspector - Independent, licensed where required by state, with detailed written reports.
• Structural engineer - For foundation, framing, or structural concerns beyond a general inspector's scope.
• Surveyor - To confirm boundaries, encroachments, and easements.
• Tax advisor / CPA - For investment properties, house-hacking, or complex capital gains planning.

Typical legal fee ranges

• Simple contract review: often USD 300-800 in many states.
• Full representation from contract through closing: often USD 1,000-3,000, higher in expensive markets.
• Complex or disputed matters: hourly rates commonly USD 250-600+ depending on geography and experience.

What are the best next steps if you plan to buy a home in the United States?

The best next steps are to get pre-approved with a lender, interview at least two buyer agents with clear fee conversations, and decide up front how you want to handle commissions and seller concessions. From there, you can tailor your search, offers, and negotiation strategy to win the right property without overpaying on fees.

Treat this like a business project with a small team: a lender, an agent or attorney, and you as the decision-maker. Clear agreements and written plans around fees and credits will matter more to your wallet than almost any cosmetic feature in the house.

Action checklist

1. Clarify your financial boundaries.
   • Set a target purchase price and total cash budget (down payment plus closing costs plus any potential buyer-agent fee).
   • Run numbers with an online calculator and a loan officer.
2. Get a strong pre-approval.
   • Ask the lender specifically: "What is my maximum allowed seller credit on this program?"
   • Request a sample Closing Disclosure showing how a buyer-agent fee and seller credit would flow.
3. Interview buyer agents or decide on DIY + lawyer.
   • Ask each agent: "How do you structure your fee now that sellers are not automatically paying it? What would that look like for a USD [X] purchase?"
   • Get their buyer representation agreement in advance and mark questions or red flags.
4. Negotiate and sign a fair buyer agreement.
   • Address term, exclusivity, fee amount, cap, and what happens if the seller pays part or all.
   • Consider a quick review by a local real estate attorney, especially on high-value purchases.
5. Build your offer strategy around net economics.
   • For each property, decide your max total cost, then work backward: price, seller credits, and fee mechanics.
   • Keep offers as clean as possible so sellers focus on your strong price and terms, not on confusing commission language.
6. Stay in writing on all key points.
   • Confirm fee and credit understandings by email with your agent and lender before each major step.
   • Review each updated Loan Estimate and Closing Disclosure for how commissions and credits are shown.