Who pays for realtor commission?

Each party, the buyer and seller, is contractually responsible for paying their own agent commission . However, it's common practice for sellers to cover both their own agent's fee and that of the buyer's agent. This arrangement helps buyers, as they don't have to factor agent costs into their expenses when they're already saving for their down payment.

Is commission included in closing costs?

Although real estate agent commissions are due when the transaction completes, they aren't categorized as closing costs. Instead, closing costs specifically refers to the various fees and charges collected at settlement, such as property transfer taxes, title insurance, and administrative expenses.

Dual agency is when a single agent represents both the buyer and the seller for the same real estate deal. This can lead to a conflict of interest. Dual agency is illegal in eight states: Alaska, Colorado, Florida, Kansas, Oklahoma, Texas, Vermont, and Wyoming.

What is an exclusive right to sell agreement?

The most common type of agent contract is known as an exclusive right to sell listing agreement. This contract states the seller agrees to work with only one agent, who gets paid when the home sells, even if the agent doesn't bring in the buyer.

Jon Stubbs

Content Writer

Jon Stubbs has been a contributing writer to Real Estate Witch since 2021. He's been a professional writer and editor for over 20 years, working on topics such as consumer debt, personal finances, and home improvement projects.

His work at Real Estate Witch focuses on saving money when selling a home, whether it's finding the right low-commission realtor or researching how to sell a home yourself, which Jon and his wife did several years ago. Jon is a homeowner and avid DIYer himself — he's especially skilled at planning projects, but less successful in finding the time to do them all. When he's not researching real estate costs, Jon is happiest spending time outdoors gardening, fishing or hiking.

Expertise:

Home buying and selling costs; real estate commission; real estate market trends.

Featured Published Articles

A September 2025 survey of local real estate agents revealed the average real estate commission in South Dakota is 5.70%, which is higher than the national average of 5.57%.
A September 2025 survey of local real estate agents revealed the average real estate commission in South Carolina is 5.65%, which is higher than the national average of 5.57%.
A September 2025 survey of local real estate agents revealed the average real estate commission in Rhode Island is 5.62%, which is higher than the national average of 5.57%.
A September 2025 survey of local real estate agents revealed the average real estate commission in Pennsylvania is 5.81%, which is higher than the national average of 5.57%.
A September 2025 survey of local real estate agents revealed the average real estate commission in Oregon is 5.10%, which is less than the national average of 5.57%.
A September 2025 survey of local real estate agents revealed the average real estate commission in Oklahoma is 6.12%, which is higher than the national average of 5.57%.