Realtor Fees

How Realtor Fees Have Changed–And What It Means for You 

Whether you’re buying your first home or your fifth, chances are a realtor is a major part of your homebuying journey. But in August of 2024, a major shift in how realtors are compensated changed the landscape of homebuying and selling, impacting the way buyers, sellers, and agents handle commissions. 

How Things Used to Work 

If you bought or sold a home prior to August 2024, things worked a little differently than they do now. Commissions from home sales are how realtors make their money. Under the old system, sellers would negotiate a commission with their listing agent, typically somewhere around 5%-6% of the home’s total value. This fee was rolled into the sale price of the home and split between the listing agent and the selling agent. 

Since this cost was baked into the home price, buyers indirectly paid for their agent’s commission, even though it wasn’t an out-of-pocket expense. 

What Changed for Buyers? 

Following an August 2024 settlement by the National Association of Realtors (NAR), buyers are now required to pay their own realtor fees directly. Instead of the seller’s commission covering the buyer’s agent, buyers must negotiate a compensation agreement with their agent before even touring a home. 

This means that in addition to a down payment and closing costs, homebuyers may also need to factor realtor fees into their budget. 

What Changed for Sellers? 

Sellers can still offer to cover part of the buyer’s agent fees, but they cannot display this offer on the MLS (Multiple Listing Service). This means that any compensation terms now have to be discussed directly between the buyer and the seller.  

How to Keep More Cash in Your Pocket 

Upfront costs can add up quickly when you’re buying a home, and adding realtor fees into the mix creates an additional cost for buyers to think about. One way to free up cash for these expenses is by lowering your overall out-of-pocket costs elsewhere–like your down payment. 

That’s where Arkansas Federal Mortgage can help. With flexible options like 100% financing and no down payment required, you can keep more cash on hand to cover realtor fees, closing costs, and other moving expenses. That means you get to focus more on moving into your dream home and less on figuring out a down payment. 

Want to learn more about 100% financing or any of your other mortgage options? Explore Arkansas Federal’s mortgage offerings or talk with one of our mortgage lending experts to get started.