Selling Your Home
Who pays the real estate commission when I sell?
By Steve Lockhart
The short answer
The short version is that commission money comes out of the sale proceeds, is always agreed in writing, and is negotiable. In the classic model, a seller agreed in the listing to a commission that would be split between the listing agent and the buyer's agent.
Full answer
The short version is that commission money comes out of the sale proceeds, is always agreed in writing, and is negotiable. In the classic model, a seller agreed in the listing to a commission that would be split between the listing agent and the buyer's agent. In 2024, the national settlement changed how that works with MLS: offers of compensation to the buyer's broker no longer appear on the listing, and a buyer's compensation is set in a separate written agreement between the buyer and their agent. What has not changed is the freedom to negotiate whatever both sides agree. A seller can still offer to contribute to the buyer side as a concession, which often helps a buyer afford the deal. Your net sheet shows you your commission in dollars long before closing. Both written agreements matter: the listing agreement you sign with your broker and the buyer agency terms agreed between buyer and agent. When both are clear, there is no mystery at the table.
Go a little deeper
Frequently asked
Questions sellers often follow up on
Is the commission set by law?
No. Commissions have never been set by law or by a board, and they have always been negotiable. What changed in 2024 is that compensation is no longer advertised through the MLS and is now written clearly in the agreements on both sides.
Can I structure a deal where the buyer pays their agent?
Yes. The buyer and their agent agree in writing, and that compensation can be paid directly, through the deal, or by a seller concession. We model the versions on the net sheet so you decide from dollars, not from percentages.
The Lockhart Method
The Lockhart Method
Your Home | My Strategy | Proven Results
My strategy: make the commission fully legible before we agree to anything. You see the exact number in writing, you understand the buyer side, and you decide with the whole net sheet in front of you.
Schedule a Consultation