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If you're selling your home without a realtor (also known as "for sale by owner," or FSBO), you won't pay a listing agent commission.
But if your buyer works with an agent, you may need to cover the buyer's agent commission. This fee is typically 2.5–3% of a home's final sale price, with the nationwide average at 2.82%.
Below, we explain FSBO buyer’s agent fees and strategies for handling or minimizing these costs.
If you want to avoid the hassle and risks of selling FSBO, consider working with a low-commission realtor. You can still save on commissions while having an expert negotiate a higher sale price and a strategic buyer's agent fee concession — so you can walk away with more money overall. Connect with top agents in your area who offer a 1.5% listing fee (half the typical rate).
Who pays buyer agent fees in for sale by owner transactions?
Traditionally, sellers pay the buyer’s agent commission to attract qualified buyers. But it’s not legally required.
Many homeowners find it easier to cover the commission to remain competitive, but sellers have more flexibility after the 2024 NAR settlement.
As Catherine Mack, the owner of House Buyer Network and a real estate investor, observes, “The NAR settlement was less about driving commissions lower and more about making them transparent. Sellers can now decide what, if anything, they’ll offer.”
How the NAR lawsuit settlement impacts buyer's agent fees
Before the settlement, sellers typically advertised a buyer's agent commission on MLS listings to ensure buyer agents were compensated. Critics argued this encouraged agents to steer buyers to properties with higher commissions.
The 2024 NAR settlement introduced changes. Sellers can no longer advertise a buyer’s agent commission in MLS listings, and buyers must negotiate the buyer's agent fee directly with their agent and put it in writing before the agent provides services.[1]
Most sellers still pay around the average commission rate (2–3%) to remain competitive, though you can experiment with partial payments or alternative structures. Mack notes, “FSBO sellers who align with market expectations keep their listings in the flow of activity, while those who buck too hard against the norm risk falling out of sight.”
Why sellers pay the buyer's agent fee in FSBO
Covering the buyer’s agent commission is a strategic move, especially in an FSBO sale. Paying the fee can:
- Expand your buyer pool to those who can’t cover their own agent’s commission
- Encourage buyer's agents to show your home
- Streamline negotiations and the closing process
The fee is also compensation for all the work the buyer's agent contributes to help you sell your home.
How much should I pay the buyer’s agent?
The buyer's agent fee is usually 2–3% of the home's sale price. The nationwide average is 2.82%, but rates vary by location.
The buyer's agent fee is determined via a contract between the buyer and their agent. You can choose to pay all, part, or none of their agreed-upon commission rate. It's the buyer's responsibility to cover what you don't. How much you pay will be decided during negotiations.
Here's a breakdown of your options:
- Cover the entire buyer's agent commission. This is the most common approach for sellers, even after the NAR settlement. It especially makes sense in competitive markets when you’re looking for ways to make your home more attractive to buyers.
- Cover part of it. You can choose to negotiate with the buyer to pay only a portion of the commission. This approach could work if you have multiple interested buyers or offer a lower-than-average listing price. The outcome of negotiations may depend on your leverage and the buyer’s financial flexibility.
- Cover none of it. You're not required to pay any part of the buyer’s agent commission. However, you should be aware that doing so may significantly shrink the pool of potential buyers — many of them may not be able to pay their agent out of pocket. What’s more, agents could be reluctant to show their clients your home without guaranteed compensation. Make sure to clearly state in your listing that you aren’t covering commissions, and be prepared for the selling process to stretch longer.
Finding a buyer who’s not working with a realtor is another way to avoid paying the agent fee altogether. Listing on FSBO websites and active marketing efforts can help you reach such buyers.
This approach comes with more risk. If there are no agents involved in the process, the chances of errors, disputes, or legal issues increase. So, although not impossible, it’s fairly uncommon and requires more work and knowledge from the seller’s side.
If you decide to sell your FSBO property to an unrepresented buyer, hire a real estate attorney to avoid legal problems.
If you want to reach more buyers while keeping control of your sale, consider using a flat fee MLS service like Houzeo. Houzeo lets FSBO sellers list their homes on the MLS — where nearly all buyers’ agents search — for a one-time flat fee. You’ll get maximum exposure on sites like Zillow and Realtor.com without paying a traditional listing agent commission. Get started with Houzeo today!
Options for covering the buyer's agent commission in FSBO deals
You can manage or offset the cost in several ways. The approach you choose can affect your pool of buyers and the competitiveness of your listing.
- Increase the listing price to offset commission. Plan ahead to include the agent’s commission in your listing price. This will help maintain your expected profits while keeping your listing competitive by covering the realtor’s fee.
- Cover fees through closing concessions. Cover part of the closing costs or repairs, or include items like appliances or furniture in the sale. The savings may allow the buyer to pay their own agent’s fees.
No matter which approach you choose, always record all commission arrangements in writing. Typically, the agent’s fee and the party that covers it should be indicated in the purchase agreement.
How does the buyer’s agent get paid for an FSBO?
Generally, the buyer's agent is paid from the proceeds of the sale upon closing. You can also pay them via wire transfer through a title company, attorney, or broker.
FSBO alternative: Use a low-commission agent
If you want to save on realtor fees but feel hesitant about handling the selling process yourself, consider working with a low-commission agent.
A professional agent can help you navigate buyer’s agent fees and market your property to get the best possible price. Working with an experienced agent also reduces risk and streamlines the process, making the sale smoother and faster.
You can find the top low-commission agents in your area through Clever Real Estate. Clever's free service connects you with agents who offer a 1.5% commission and have the right experience for your sale. Find the best low-commission agents near you.
