How do real estate agents get paid and who pays the buyer's agent?

Real estate agent compensation is negotiated as part of the transaction and outlined in the listing agreement and buyer representation agreement. Historically the seller paid both agents' commissions from the sale proceeds, but recent changes mean compensation structures can vary. Some sellers may offer compensation to the buyer's agent, while in other cases the buyer and their agent will agree on compensation separately. The total amount and how it's split depends on the specifics of each transaction. None of this affects the price you negotiate for the home itself. If you have questions about how representation and compensation will work in your situation, Jon can walk you through it directly.