Finance category
Mortgage, loan, investing, tax, and money calculators.
Buyer Agent Commission Calculator
The NAR settlement (August 2024) changed the buyer-agent commission game. MLS listings can't publish offers of compensation; buyers must sign a representation agreement before touring; sellers may or may not offer compensation separately. This calculator sizes the buyer's agent fee under the new rules — what the buyer signed for, what the seller agreed to cover, and the net buyer out-of-pocket.
Buyer out-of-pocket
$0
Total buyer-agent fee
$12,125
Seller contribution
$12,125
Seller coverage of fee
100.0%
Out-of-pocket as % of price
0.00%
How the math works
At $485K price with a 2.5% buyer-agent commission and 2.5% seller contribution, the fee is fully covered — $0 out-of-pocket for the buyer. At 3% buyer fee vs 2% seller contribution, the gap is 1% = $4,850 out of pocket at close.
Key post-NAR behavior: negotiate with seller via the offer contract, not via MLS. If the seller won't cover your full buyer-agent commission, you can: (1) ask for a price reduction to offset, (2) negotiate buyer-agent fee down, (3) walk. Don't let a last-minute commission surprise torpedo an otherwise-good deal.
How to Use
- Enter home price and the commission % or flat fee in your buyer representation agreement.
- Enter what the seller agreed to contribute toward buyer-agent commission (often 2-3%).
- See buyer out-of-pocket, net effective commission, and monthly impact if financed (VA/FHA limits apply).
Frequently Asked Questions
How does the NAR settlement change buyer commissions?
Previously, seller paid both sides via the listing agreement, with buyer agent compensation advertised via MLS. Post-settlement (effective Aug 17, 2024): MLS can't show offers of compensation. Sellers may still offer compensation but must do so via direct negotiation. Buyers must sign a representation agreement before touring homes with an agent.
Do buyers now pay out of pocket?
Sometimes. If the seller won't cover the buyer agent's full negotiated commission, the gap comes out of the buyer's pocket at closing. Many sellers still cover 2-3% to attract buyer offers. But savvy sellers are reducing this and telling buyers to negotiate with their own agents for the remainder.
Can buyer-agent commission be financed?
Officially no — it's not a financeable closing cost under most loan types (Fannie/Freddie, FHA, VA classify it outside Closing Disclosure concessions). Workaround: some lenders allow a 'concession' to offset, but it takes careful structuring. Most buyers simply pay cash at closing.
What's a typical buyer-agent fee now?
Still 2-3% in most markets, but we're seeing more variance — some experienced buyers negotiate 1-1.5% with agents who aren't full-service. Flat fees ($3K-$8K) are emerging for buyers who need just contract work, not full buyer representation.
Related Calculators
More Finance Calculators
Browse all finance →AI Cost Calculator
Compare token costs across OpenAI, Anthropic, and Google AI models. Calculate monthly API spending for GPT-4o, Claude, Gemini, and more.
Tip Calculator
Calculate the perfect tip and split the bill between friends. Choose preset percentages or enter a custom tip amount.
Bill Splitter Calculator
Split an uneven restaurant bill by item, divide tax and tip proportionally, and see exactly who owes whom.
Discount Calculator
Calculate sale price, discount amount, stacked discounts, sales tax, and total savings for any markdown.
Gas Mileage Calculator
Calculate MPG or km/L, estimate trip fuel cost, and compare annual fuel expenses between two vehicles.
Sales Tax Calculator
Add sales tax to a price, reverse-calculate the pre-tax amount from a total, and estimate tax for multiple items on one receipt.
Keep exploring
Next steps in Finance
Previous calculator
Buy and Hold ROI Calculator
Model total ROI on a long-term buy-and-hold rental: cash flow, principal paydown, appreciation, and tax benefits.
Next calculator
CAGR Calculator
Calculate compound annual growth rate, compare investment performance, and project ending value from a target CAGR.