Real estate commissions have been the subject of more headlines, lawsuits, and confused text messages to agents in the last two years than in the previous decade combined. The rules changed. The short version: sellers and buyers each negotiate their own agent's fee separately now, and buyers have to sign a written agreement before they tour anything.
Here is how it actually works, from both sides of the table.
The 2024-2025 Rule Changes, Plain English
Before August 2024, the seller typically agreed to pay both the listing agent and the buyer's agent out of their proceeds. That total commission was baked into the MLS listing, the buyer's agent knew what they were getting paid before they opened a door, and the buyer never saw a separate line item for it.
That model is gone.
Under the rules that came out of the National Association of Realtors settlement, two things changed:
First, buyer agent compensation can no longer be advertised on MLS listings. Sellers can still offer to cover it, but it is negotiated off-MLS, usually in the purchase offer itself.
Second, buyers must sign a written Buyer Broker Agreement before touring any home. That agreement spells out exactly what the buyer's agent charges, in writing, before any house is visited.
These changes were meant to create transparency. In practice, for most Columbus and Westerville transactions, the deals still look similar to before. Sellers frequently agree to cover the buyer's agent fee because it brings more buyers to the table. But it is no longer automatic, and buyers now need to understand their own fee agreement before they start shopping.
Who Pays What, and When
The Seller's Side
Sellers negotiate a listing commission directly with their agent. In the Columbus market, listing-side commissions typically run in the 2 to 3 percent range, though every deal is negotiated and there is no set number.
That fee comes out of the seller's proceeds at closing. The seller does not write a check on a Tuesday. It is deducted from the sale price before the net is wired to the seller.
The Buyer's Side
Buyers now sign a Buyer Broker Agreement that specifies what their agent charges. The structure varies: percentage of purchase price, flat fee, or hourly in some cases. Once that is agreed to in writing, the buyer is technically responsible for paying it.
The practical question is whether the seller agrees to cover it. Buyers can write a request into their offer: "Seller to pay buyer's agent compensation of X percent." If the seller agrees, that amount is credited at closing and the buyer does not come out of pocket for it. If the seller declines, the buyer either pays it themselves or the parties negotiate a different structure.
On most deals in Columbus right now, sellers are still agreeing to cover the buyer's agent fee. It costs the seller a bit in net proceeds, but it keeps the buyer pool open. Sellers who refuse to offer anything tend to see fewer offers.
How the Money Actually Moves at Closing
Here is the flow. The closing attorney or title company holds the proceeds from the sale. Before anything is wired to the seller, the agreed commissions are paid out to the brokerages involved.
The money goes to the brokerage, not directly to the agents. The brokerage then pays its agent based on their agreed split. Structures vary by brokerage, some use percentage splits, others flat fees per transaction, so the agent's take-home depends entirely on their individual brokerage arrangement.
An example: On a $400,000 sale in Westerville with a total negotiated commission of 5 percent, $20,000 comes out of the proceeds. The listing side and buyer's side each receive their agreed portion, and each agent gets their cut of that after the brokerage takes its split.
Agents are paid only at closing. There is no draw, no salary from the transaction, no retainer. If the deal falls apart the week before closing, nobody gets paid.
What You Are Actually Paying For
This is the part most buyers and sellers do not fully think through until they are in the middle of a transaction.
On the Listing Side
A listing agent earns their commission by managing the entire sale process from the moment you sign the listing agreement to the moment the wire hits your account.
That includes: analyzing comparable sales and setting a pricing strategy, advising on which repairs or updates move the needle before listing, coordinating photography and video, building and running the marketing campaign, managing showings and feedback, presenting and comparing offers with you, negotiating terms beyond just price, handling the inspection process and appraisal, keeping the timeline on track through the final week, and being the person who calls you when something goes sideways.
In the Columbus market, pricing strategy alone can swing a net result by tens of thousands of dollars. An agent who under-prices to get a quick close, or who panics on the first low offer, or who does not know how to handle an appraisal gap, is going to cost you more than their commission saves you.
On the Buyer's Side
A buyer's agent's job is to keep you from making a bad decision at the worst possible time, and to get you into the right house under the best terms available.
That means: helping you define your real criteria versus your stated criteria (not the same thing, in my experience), knowing which streets in Westerville or Dublin or Upper Arlington hold value versus which ones are a resale headache, getting you into houses quickly in a competitive environment, structuring an offer that is competitive without being reckless, negotiating inspection requests based on what actually matters versus what is noise, protecting you through the appraisal and financing stretch, and staying in your corner when the other side tries to renegotiate after the fact.
Under the new rules, that scope of work is now defined in writing before the first tour. You can see exactly what you are agreeing to.
The Honest Read on Commission Structures
Commission is negotiable. Has been, always will be. What you are really negotiating is the level of work and representation you get in return.
A lower listing commission with a discount brokerage is sometimes fine. On a straightforward house in strong demand with a clean title and a motivated buyer, less hands-on management may cost you very little.
On a complex transaction, a difficult inspection, a tight appraisal, a dual-income buyer who loses a job three weeks before closing, or a seller who decides to pull out the week before settlement, you are going to want someone who has done this enough times to know what options you have. That is what the commission pays for.
At the end of the day, the commission comes out of the sale price. What matters is the net, not the gross. An agent who negotiates you an extra $12,000 over asking and costs $3,000 more in commission put $9,000 more in your pocket.
What This Looks Like on a Real Columbus Deal
Using round numbers: a $350,000 home in Westerville with a total negotiated commission of 5 percent produces $17,500 in commission at closing. If the seller agrees to cover both sides, that comes out of the proceeds. If only the listing side is covered by the seller, the buyer either pays their agent's portion (say 2.5 percent, or $8,750) or negotiates for the seller to include it as a credit in the offer.
The numbers shift by price point, by how competitive the deal is, and by what you negotiate. There is no universal answer. There is just your deal.
Questions I Get All the Time
Can I ask the seller to pay my agent's fee? Yes. You write it into the offer. Whether the seller agrees is a negotiating point like anything else.
Does a buyer's agent working for less mean worse service? Not always. But scope and motivation matter. Ask what the agent's process looks like before you sign the agreement.
What if I decide not to buy after touring five houses? That depends on the Buyer Broker Agreement you signed. Some have cancellation provisions. Read the agreement before you sign it, and ask your agent to walk you through it.
Do commissions affect the listing price? No. The listing price is set by the market. The commission comes out of what the seller nets after that price is achieved.
If you want a plain-English commission breakdown specific to your price range in Columbus or Westerville, or help understanding how to structure an offer so the seller covers your agent's fee, call or text me directly.
Adam Geuy, Realtor - NextHome Experience
ABR, PSA, SRS | License #202000794
937.239.2919 | calendly.com/adam-geuy
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