Alright, let’s talk about something that’s been driving me crazy lately—all this nonsense about buyers having to pay their agents now. I had two separate conversations just today where people said, "Wait, so now the buyer has to pay their agent AND the seller’s agent too?" And I’m sitting here like—NO.
If you’ve been in real estate for more than a year, this changes nothing for you. It’s business as usual. But since the media loves drama, let me break it down so you actually understand how commissions really work.
Here’s the Truth: Sellers Pay the Commissions (Yes, Still)
When you sell your house, you agree to pay your listing agent a commission—let’s say 6%. That money is theirs to get your house sold. Now, I don’t know every buyer in all 50 states who might want your home, right? So what do I do? I call my team, my network, other agents—"Hey, I’ve got this amazing listing, who’s got a buyer?"
That 6% you gave me? I’m using part of it (say, 3%) to incentivize another agent to bring me a qualified buyer. The seller isn’t paying the buyer’s agent—I am, out of what the seller already agreed to pay me.
Think of it like this: If you give someone a dollar and they use it to buy alcohol, is that your business? No. You gave them the dollar—what they do with it is up to them. Same thing here.
When Might a Buyer Pay? (And It’s Rare)
Okay, let’s say a seller tells me, "Taylor, I’ll only pay you 2% to sell my house." (For the record, I wouldn’t take that, but let’s say I did.) Now, if a buyer’s agent expects 3%, where does that extra 1% come from?
Here’s how it can work:
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The buyer offers 500K.
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They ask for $10K back at closing (seller concession) to cover their agent’s fee.
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That $10K gets rolled into their mortgage, so they’re not pulling cash out of pocket.
Technically, the buyer is "paying" it, but it’s not like they’re writing a check at closing. It’s all in the financing.
Why the Media Got It All Wrong
The big lawsuit everyone’s talking about? It made people panic, but here’s what actually changed:
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Before: Commissions were listed quietly in the MLS (like, "Buyer’s agent gets 2.5%").
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Now: We have to put it in writing upfront in the contract. That’s it.
And let me tell you about this wild new "flat-fee" model some companies are pushing—"Pay $1,200 and we’ll show you 10 houses!" Sounds great, right? Until you realize:
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In this market, you’ll probably see 20+ houses.
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You’ll make 5+ offers before one gets accepted.
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Suddenly, that "7,900** because they charge extra per showing and per offer.
Conflict of interest? Maybe. But hey, free country.
Bottom Line: Don’t Stress
If you’re buying a home:
- You’re not suddenly on the hook for your agent’s paycheck.
- The system works the same as it always has—just with more paperwork.
- If anyone tells you otherwise, send them to me. I’ll set ‘em straight.
Watch the Full Conversation
Video Timestamp: 00:02:29 - 00:06:18
In Part 3, we’re diving into contingencies—aka your "escape clauses" if the house turns out to be a money pit.
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