This is one of the most common questions buyers and sellers ask before entering the market, and the answer has changed meaningfully in recent years. Understanding how realtor agencies get paid helps you plan your costs accurately and avoid surprises at the closing table.
How Realtor Agencies Have Traditionally Been Paid
For decades, the standard practice in real estate was straightforward: the seller paid the full commission at closing, which was then split between the listing agency and the buyer’s agency. That combined fee typically ran between five and six percent of the sale price. From the buyer’s perspective, this created a common assumption that working with an agent cost them nothing out of pocket. In reality, those costs were built into the transaction and reflected in the price the buyer ultimately paid.
How Realtor Agencies Are Paid After the 2024 NAR Settlement
That model shifted significantly following the 2024 National Association of Realtors settlement, which changed the rules around how realtor agencies disclose and collect compensation. The key change is that cooperative compensation can no longer be listed in the MLS, and buyers are now required to sign a buyer agency agreement before touring properties with an agent. This means buyer’s agent compensation is now a separate, negotiated item rather than an automatic split from the seller’s side. In practical terms, buyers may need to negotiate and pay their own agent’s fee directly, though sellers can still choose to offer compensation to the buyer’s agency as part of their overall deal terms.
What This Means for Buyers and Sellers Today
For sellers, the change means they are now primarily responsible for their listing agency’s commission, which typically runs in the range of two to three percent. Offering to cover the buyer’s agent fee remains an option and can make a listing more attractive in a competitive market. For buyers, the shift means having an upfront conversation with any agent about compensation before the search begins. Realtor agencies are required to be transparent about their fees, and those fees are negotiable.
How Province Real Estate Handles Representation
In Thomasville and Thomas County, Province Real Estate works with both buyers and sellers with full transparency around compensation and representation. As the exclusive sales representative for new construction homes across Bloomfield Lakes and Victoria Place, Province operates as one of the area’s most active realtor agencies, with a clear focus on client outcomes over transaction volume. Understanding how you will be represented and what it costs is part of every initial conversation.
