Do Buyers Really Pay Realtor Fees?

The Common Myth: “The Seller Pays, So It’s Free for Buyers”

For decades, real estate agents have reassured homebuyers that their services don’t cost a thing because the seller covers the commission. At first glance, this sounds like a great deal: you get expert help, and the seller foots the bill.

But in reality, buyers do pay for those fees, it’s just indirectly. When you buy a home, the seller’s listing price already includes the cost of commissions. Those costs are baked into the home’s price, which means you’re financing the buyer’s agent fee through your mortgage.

Here’s the simple truth:

If you’re buying a $700,000 home and the total commission is 5 to 6%, roughly $17,500 to $21,000 of what you’re paying covers agent fees.

That’s real money, and for many buyers, it’s the difference between stretching their budget or saving for repairs and upgrades after move-in.

How Realtor Fees Traditionally Work

Under the long-standing model, sellers pay both agents:

• Listing agent: Represents the seller and markets the property.
• Buyer’s agent: Represents the buyer’s interests and guides them through the purchase.

Both agents split a combined commission (typically 5–6% of the home price). On a $700,000 home, that’s $35,000 to $42,000 — often split roughly 50/50 between agents.

This setup was originally designed for fairness so that buyers could afford representation. But over time, as home prices have skyrocketed, those commissions have ballooned far beyond the actual cost or effort of most transactions.

What’s Changing since 2024: Transparency and Negotiation

Following the National Association of Realtors (NAR) settlement, the industry is changing. Buyers must now sign a written agreement with their agent before touring homes, clearly outlining how much the agent will be paid and by whom.

This shift brings long-overdue transparency.

• Buyers now see exactly what their agent earns.
• They can negotiate that fee directly.
• And they can choose whether it’s paid by the seller, included in the offer, or paid out of pocket.
  
  

In other words, buyers are finally in control.

At TurboHome, we see this as progress. For too long, agent fees have been hidden behind outdated systems and inflated commission percentages. Modern buyers deserve to know what they’re paying for — and decide whether it’s worth it.

Why Flat Fees Are the Smarter Alternative

Instead of taking a percentage of your home’s price, TurboHome charges a transparent flat fee — often 80% less than the traditional 2.5 to 3% buyer’s agent commission.

Here’s what that means for you:

• More savings: On average, TurboHome buyers save approximately $35,000 per transaction.
  
• More leverage: Offers that don’t include a 2.5 to 3% commission request from the seller are cleaner and more attractive in competitive markets.
  
• More confidence: You know exactly what you’re paying, and you only pay if you close.
  
  

Why This Matters for Buyers Today

2025 is shaping up to be a year of change in real estate. With interest rates hovering around 6 to 7% and home prices still elevated, every dollar matters. Paying a percentage-based fee also reduces your buying power and adds unnecessary cost .

Buyers are also now more informed and empowered than ever. According to the TurboHome–ResiClub Housing Sentiment Survey, 73% of homeowners found their most recent home themselves, yet many still paid agents as if they hadn’t lifted a finger.

That’s why the industry needs to evolve and why flat-fee models are the future.

Final Thought

So, do buyers really pay realtor fees?

Yes, just not in the way most people think. Whether it’s baked into the home’s price or paid directly, those commissions come from the buyer’s pocket in one way or another.

The good news? You now have better options.
Flat-fee brokerages like TurboHome give you full professional representation, transparent pricing, and a smarter way to buy. Because when buyers keep more of their own money, everyone wins.

👉 Ready to see how much you could save?
Connect with an agent and start your smarter homebuying journey today. TurboHome.com to connect with an agent and start your smarter homebuying journey today.