Think the seller always pays your agent’s commission? Think again. The truth is, you’re paying for it—and understanding how is the key to saving thousands of dollars.
The world of real estate commissions has been turned on its head, yet most buyers are still operating under old, expensive assumptions. This is a problem. The fog surrounding buyer’s agent fees has left too many people paying full retail on the biggest purchase of their lives without even knowing they had other options.
“Who pays the buyer’s agent? It’s the most misunderstood question in real estate. The answer will change how you buy your next home.”
An Industry Earthquake: The New Rules of Commission
For years, the process was deceptively simple. It was a world where you didn’t see a bill, so you thought you weren’t paying.
Normal ➜ For decades, sellers paid a bundled commission (typically 5-6%) from their sale proceeds [6]. That fee was split between their agent and your agent. The offer of compensation was posted on the MLS, and the system just… worked. It was opaque, but it was the standard.
Explosion ➜ Then, the landmark National Association of Realtors (NAR) settlement of 2024 happened. In a flash, the rules changed. Effective August 2024, listing agents were no longer allowed to publish offers of compensation to buyer’s agents on the MLS [7]. The old, bundled model was shattered.
New Normal ➜ Today, you are officially hiring your agent. You must sign a buyer representation agreement that clearly states your agent’s compensation before you start touring homes. This transparency puts you in the driver’s seat. While sellers can still offer concessions to cover that fee, it’s now a clear point of negotiation—and not a guarantee.
What Exactly Are You Paying For?
With this new transparency, you might be asking: “What am I getting for that fee?” It’s a fair question. Let’s consider a buyer we’ll call Mark. Mark thought he could go it alone to save on the commission. He found a house online, but soon found himself drowning in a 200-page contract, overpaying by $30,000 after a weak negotiation, and missing critical deadlines that put his earnest money at risk.
An expert buyer’s agent is your strategic partner, protecting you from pitfalls like Mark’s. Their fee covers a precise set of high-value services:
▶ Strategic Navigation: Guiding you through the complex home-buying journey, from securing financing to handing you the keys. ▶ Marketplace Pulse Analysis: Analyzing comparable properties to determine a home’s fair market value, ensuring you don’t overpay. ▶ Winning Negotiations: Structuring a compelling offer and negotiating with the seller’s agent on price, terms, and repairs. ▶ Exclusive Access: Finding properties before they hit the market through a vast professional network, a key advantage provided by well-connected teams like The Cassity Team. ▶ Contract-to-Close Management: Handling all the paperwork, deadlines, and coordination with lenders, inspectors, and title companies.
The Bottom Line: How Much Are Buyer’s Agent Fees?
Let’s talk numbers. Understanding the cost is the first step to controlling it.
■ The national average buyer’s agent commission was 2.42% in the third quarter of 2025 [1]. On a $1.2 million San Diego home, that’s $29,040. ■ While sellers no longer pre-determine this fee, many are still willing to offer a concession toward it to attract a wider pool of qualified buyers. ■ This concession, however, is almost always baked into the final sale price. So, while the seller writes the check at closing, the money ultimately comes from the price you pay for the home [5].
I’ll admit—I’ve made my share of mistakes explaining this over the years. Early in my career, I might have waved my hand and said the seller just pays for it. It’s simpler, but it’s not the whole truth. Now I know that empowering clients starts with total transparency, even when it’s complicated.
Don’t Forget the Other Upfront Costs
The buyer’s agent fee isn’t the only expense you need to budget for. Buying a home involves several significant upfront costs, which is why having a strategy to manage your agent’s commission is so critical.
Here’s a sample breakdown for a $1,200,000 home purchase in San Diego:
| Expense | Typical Cost | Example Amount |
|---|---|---|
| Down Payment | 10% | $120,000 |
| Earnest Money | 2% | $24,000 |
| Closing Costs | 2% | $24,000 |
| Total Upfront Costs | $168,000 |
Note: These are estimates. Your actual costs will vary based on your loan, negotiations, and specific property.
▶ Down Payment: This is typically your largest single expense, often ranging from 3% to 20% of the purchase price. ▶ Earnest Money: This is a “good faith” deposit you make when your offer is accepted. It’s usually 1-3% of the price and is applied to your down payment at closing. ▶ Closing Costs: These are fees for services required to finalize the transaction, like the appraisal, inspection, and loan underwriting. In San Diego, these typically run 1-3% of the purchase price. Understanding the new San Diego Realtor commission rates is a key part of managing these costs.
How to Save Thousands on Your Agent’s Fee
The new rules have created a huge opportunity for savvy buyers. You are no longer a bystander in the commission conversation; you are leading it. Here are three powerful ways to reduce your costs.
➜ Negotiate the Fee Directly with Your Agent This is the single most effective strategy. Agent commissions are not set in stone—they are negotiable. The new mandatory buyer representation agreements force this conversation to happen upfront. Yet most buyers still don’t ask. By mastering a few simple negotiation techniques, you can potentially save over $12,000 on your home purchase.
➜ Request a Seller Concession Your agent can strategically write your purchase offer to include a request for the seller to contribute a credit toward your closing costs and agent fees. In a balanced marketplace pulse, this is a common and effective approach. It’s a negotiation, not a given, so the strength of your offer matters.
➜ Finance the Fee (with caution) In some cases, you may be able to roll your agent’s commission into your home loan. This lowers your immediate out-of-pocket expense but increases your total loan amount and the interest you’ll pay over time. It’s a trade-off that requires careful consideration with your lender.
Partner with San Diego’s Commission Negotiation Experts
The difference between paying $30,000 and $18,000 in agent fees isn’t luck—it’s having an expert guide who understands the new landscape and advocates for you from day one. At The Cassity Team, we built our reputation on transparent, value-based representation that puts our clients’ financial interests first. Our buyers save an average of $8,200 through strategic negotiation.
Ready to build a home-buying strategy that puts you in control?
Contact Jason Cassity at 619.800.6178 or visit thecassityteam.com to schedule your confidential commission strategy session.