Who Really Pays the Buyer’s Agent Commission? (Hint: It’s You — the Buyer.)

When it comes to buying a home, there’s a long-standing myth that the seller pays the buyer’s agent commission. But let’s address the truth clearly within the first two sentences: the buyer is the one who truly pays the buyer’s agent commission, even when the seller is the one offering it. This is because the commission is baked into the home’s purchase price, and buyers bring the money to the closing table.

For decades, real estate has repeated the same phrase: “The seller pays the buyer’s agent commission.” Technically, the commission is offered by the seller, but that does not mean the seller is the one funding it. In reality, the buyer brings the funds that allow the seller to pay commissions, the purchase price already includes the cost of the buyer-agent commission, sellers care only about their net proceeds, and if the buyer asked the seller to reduce the buyer’s agent commission and lower the purchase price by that amount, the seller almost always would, because their bottom-line net stays the same. This means the buyer effectively pays the commission every single time.

Consider a home listed for $900,000 with a 2.5% buyer-agent commission ($22,500). If a buyer wanted to remove that commission and lower the purchase price to $877,500, the seller would likely accept because their net doesn’t change. Whether the buyer pays $900,000 with the seller paying a buyer’s agent, or the buyer pays $877,500 with no buyer-agent commission, the seller walks away with the exact same amount. That is the clearest proof that the buyer, not the seller, is the one paying the commission.

This topic matters more than ever in 2025. Due to the 2024 NAR settlement, buyers must now sign buyer agency agreements before touring homes, and buyer-agent compensation must be transparent. For the first time, buyers are seeing in writing what representation costs. And they’re asking: “If I’m ultimately paying, why is the cost so high? What am I actually getting for the money? Are there better models that fit how modern buyers search for homes?”

As buyers take on more of the early work, visiting open houses on their own, reviewing listings online, tracking neighborhoods, studying price reductions, they’re also questioning the traditional percentage-based structure. In a percentage model, a buyer’s agent earns more simply because the buyer chooses a more expensive home. The workload doesn’t triple when the price triples, yet the traditional commission does. This disconnect is leading more buyers to explore transparent alternatives like flat-fee representation.

That’s where the Chambers NW Flat-Fee Buyer Program comes in. Instead of charging a percentage, Chambers NW charges a flat $13,000 fee for full-service buyer representation. This structure makes the most financial sense for homes priced $600,000 and above. Whatever amount the seller is offering as buyer-agent commission is then rebated back to the buyer at closing. For example, on a $900,000 home with a 2.5% buyer-agent commission ($22,500), the buyer receives a $9,500 rebate at closing. That rebate is applied as a credit, directly reducing the buyer’s cash needed to close.

What makes the flat-fee model so powerful is that it gives buyers transparency, savings, and full representation. And nothing is reduced. Buyers still receive expert strategy, market analysis, negotiation, inspection guidance, contract management, pricing advice, and transaction oversight. The model simply changes the structure from a percentage, which inflates with home prices, to a service-based fee, which reflects the real work involved.

Another benefit of the flat-fee model is the removal of a subtle conflict of interest. In the traditional structure, an agent is compensated more when their buyer offers more. In a flat-fee model, the agent’s income does not change based on price. The incentive is aligned with the buyer, helping them secure the home at the right price and terms.

Understanding who truly pays the buyer’s agent also impacts a buyer’s offer strategy. Knowing that commission dollars are negotiable gives buyers more control. If the seller is offering 2.5% buyer-agent compensation, the buyer can negotiate that amount, request concessions, request a rebate, or reduce the purchase price accordingly. This flexibility can increase competitiveness, reduce cash needed to close, or create a more favorable financial structure overall.

This transparency matters especially for first-time buyers, who often feel overwhelmed by costs like down payments, loan fees, appraisal fees, and moving expenses. Receiving a rebate through the Chambers NW program can make a meaningful difference. It can cover closing costs, help with inspections or loan fees, or create a buffer for post-closing improvements. If buyers are the ones ultimately paying the commission, they deserve the ability to reclaim a portion of it.

Buyers today are more informed than ever. They research online, study neighborhoods, compare schools, analyze pricing patterns, and monitor interest rates. They walk through open houses, send links, save searches, and track Redfin/Zillow estimates. This modern buyer deserves a modern compensation structure, one that reflects their role in the process and gives them control over costs. There is no reason buyers should continue paying inflated, percentage-based commissions simply because “that’s how it’s always been done.”

At its core, the truth is simple: if you’re paying for the buyer’s agent commission, and you are, you should have a say in how much you pay, how the model is structured, and how that affects your bottom line. And with programs like the Chambers NW Flat-Fee Buyer Program, buyers can finally take control, save thousands, and receive full, experienced representation without compromise.

Frequently Asked Questions (FAQs)

Do buyers pay the buyer’s agent commission?
Yes. Even though the commission is offered by the seller, the buyer funds it through the purchase price. If the buyer lowered the buyer-agent commission and reduced the purchase price by the same amount, the seller would typically accept, proving the buyer is the true source of the commission.

Why do people say the seller pays the buyer’s agent?
Historically, commissions were structured so both agents were paid from seller proceeds. But those proceeds come from the buyer. The cost is baked into the price the buyer pays, not added separately by the seller.

Can buyers negotiate the buyer-agent commission in 2025?
Yes. Compensation is now fully negotiable. Buyers can request lower compensation, ask for a rebate, use a flat-fee structure, or negotiate a reduction that lowers the purchase price.

What is a buyer-agent rebate?
If the seller offers a 2.5% buyer-agent commission and your agent charges a flat fee, the difference is credited back to you at closing. This reduces your cash needed to close and gives you direct savings.

Does a flat-fee agent mean less service?
Not with Chambers NW. You receive full service, negotiation, strategy, inspections, contract management, and transaction oversight, with a modern pricing structure that saves you money.

Can the seller reduce the purchase price if the buyer’s agent commission is lowered?
Yes. Sellers care about their net proceeds. If you lower the buyer-agent commission and reduce the offer price equivalently, the seller almost always nets the same amount.

Is a flat-fee agent better for higher-priced homes?
Yes. Because buyers keep the difference between the seller-offered commission and the flat fee, savings increase as home prices rise. On higher-priced homes, rebates can exceed $10,000+