Who Pays the Realtor Fees When You Buy a House?


The Seller typically pays ALL of the Realtor fees in a real estate transaction.

The exception is when a buyer makes an accepted offer on a For-Sale-By-Owner (FSBO) and they do not cooperate with real estate. Therefore, refuse to pay Realtor fees, however most FSBO’s do cooperate with real estate therefore the chance the buyer will have to pay the fee is minimal.

As a homebuyer, you can choose any real estate agent in the city to work for you at no expense to you. For first time homebuyers, this is very important information. Since there are many steps in the home buying process, it makes the most sense to start finding a Realtor as soon as you are ready to pursue home ownership. Their services are free to you, so you might as well use them to their full potential.


Interesting Real Estate Facts: Realtors do not get paid until closing.


When a Realtor is working with you to find you a home, they know that they will not make a dime unless you purchase a house and use their services to do so. It’s not enough to simply get a contract signed. Real estate agents have to stick with the transaction and make sure that it makes it to the closing table, or they will not get paid. The seller will pay the Realtor fees out of the proceeds from the sale of their home (if there is enough equity). If the deal falls apart before making it to closing, the Realtors will typically never get paid for their work. This is one of the reasons that being a Realtor is difficult. 

The money goes the from the Seller, to the Sellers Agents Brokerage, then to the Buyers Agents Brokerage, then finally to the Buyers agent. All of this is coordinated before the closing so that the Realtors can get paid at the closing table if everything is documented correctly, and the transaction funds properly. Realtors pay tens of thousands of dollars in expenses whether or not they have closings, so they are very motivated to do what it takes to get you closed.

It’s important to note that Realtor fees are negotiable. As a home buyer, Realtor fees are typically not negotiated, since the seller is paying for them. The negotiations usually happen between the listing agent and the home seller. As in any industry, you get what you pay for. You may be able to get your Realtor fees discounted as a home seller by negotiating with your listing agent, but make sure that you are still receiving the highest level of service. There are many good places to save some money in life, but real estate transactions are not typically the best place to go cheap. A good Realtor will NET you the highest amount possible for the sale of your home, and do so in the least amount of time on the market. They are motivated to by the commission they will receive when the job is done. If you lower their motivation, you will most likely lower your home selling potential. It’s something to think about before listing your home for sale.



If you’re a first time homebuyer and you’re wondering what the first step for you is, send me a quick text or an email: 519-497-6795 or kylie.rohr@century21.ca.

If you are a homeowner looking to sell your home, check out my home evaluation tool and please let me know if I can help you sell it. I would love the opportunity to earn your business and exceed your expectations.





Kylie Rohr

Kylie Rohr

CENTURY 21 Heritage House Ltd., Brokerage*
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