Here's something most home buyers don't find out until it's too late: the real estate agent showing you houses wasn't free. You were paying them the whole time. You just didn't see the line item.
For decades, agent commission was baked into the price of every home. Sellers technically paid it, but that cost got priced into what the house sold for, which means buyers were really footing the bill. A $500,000 home included something like $30,000 of agent commission across both sides of the deal. Buyers never saw the number. They just saw "my agent is free."
The NAR settlement in 2024 cracked that open. Now buyers have to sign an agreement up front that spells out exactly what their agent will get paid. Suddenly, the question every buyer is asking is: do I really want to pay $12,000 for someone to show me houses?
Let's actually look at the numbers.
How real estate commissions traditionally worked
The standard for a long time was 5 to 6 percent of the sale price, split between two agents:
The seller's agent (listing agent): 2.5 to 3 percent
The buyer's agent: 2.5 to 3 percent
So if you sold a house for $400,000, $24,000 went to agents. $12,000 to yours, $12,000 to the buyer's.
The seller paid both sides at closing out of the sale proceeds. Buyers never wrote a check, which is why everyone thought the buyer's agent was free. But the commission was always baked into the asking price. If sellers didn't have to pay that money out, homes would sell for less. Buyers were paying, just indirectly.
What the NAR settlement changed
In March 2024, a federal court approved a $418 million settlement against the National Association of Realtors. The case argued that the standard commission structure amounted to collusion. The settlement forced a few big changes that went into effect in August 2024:
Sellers no longer have to offer a buyer's agent commission on the MLS. They can, but it's no longer assumed.
Buyers now have to sign an agreement with their agent before the agent shows them a home. That agreement has to specify the commission in writing.
Commissions are fully negotiable and transparent. The buyer and agent decide what the agent gets paid and who pays it.
So now, as a buyer, you're walking into this with open eyes. You know what your agent costs. You know who's going to pay them. And you can negotiate.
Here's something most home buyers don't find out until it's too late: the real estate agent showing you houses wasn't free. You were paying them the whole time. You just didn't see the line item.
For decades, agent commission was baked into the price of every home. Sellers technically paid it, but that cost got priced into what the house sold for, which means buyers were really footing the bill. A $500,000 home included something like $30,000 of agent commission across both sides of the deal. Buyers never saw the number. They just saw "my agent is free."
The NAR settlement in 2024 cracked that open. Now buyers have to sign an agreement up front that spells out exactly what their agent will get paid. Suddenly, the question every buyer is asking is: do I really want to pay $12,000 for someone to show me houses?
Let's actually look at the numbers.
How real estate commissions traditionally worked
The standard for a long time was 5 to 6 percent of the sale price, split between two agents:
The seller's agent (listing agent): 2.5 to 3 percent
The buyer's agent: 2.5 to 3 percent
So if you sold a house for $400,000, $24,000 went to agents. $12,000 to yours, $12,000 to the buyer's.
The seller paid both sides at closing out of the sale proceeds. Buyers never wrote a check, which is why everyone thought the buyer's agent was free. But the commission was always baked into the asking price. If sellers didn't have to pay that money out, homes would sell for less. Buyers were paying, just indirectly.
What the NAR settlement changed
In March 2024, a federal court approved a $418 million settlement against the National Association of Realtors. The case argued that the standard commission structure amounted to collusion. The settlement forced a few big changes that went into effect in August 2024:
Sellers no longer have to offer a buyer's agent commission on the MLS. They can, but it's no longer assumed.
Buyers now have to sign an agreement with their agent before the agent shows them a home. That agreement has to specify the commission in writing.
Commissions are fully negotiable and transparent. The buyer and agent decide what the agent gets paid and who pays it.
So now, as a buyer, you're walking into this with open eyes. You know what your agent costs. You know who's going to pay them. And you can negotiate.
What are agent commissions actually paying for?
A traditional buyer's agent typically handles:
Searching the MLS and sending you listings
Scheduling and attending showings
Writing your offer
Negotiating with the seller's agent
Coordinating the inspection
Walking you through closing documents
Answering questions along the way
For that, they get 2.5 to 3 percent of the purchase price. On a $450,000 home, that's $11,250 to $13,500.
Here's the uncomfortable question: is that worth it? Some agents earn every penny. They know the local market cold, they negotiate hard, they save their clients thousands by spotting problems. Others basically unlock doors and email you listings Zillow already sent you for free.
The quality varies dramatically. And the commission percentage doesn't scale with the work. An agent doing a $300,000 transaction and an agent doing a $900,000 transaction are doing basically the same amount of work, but one gets paid three times as much.
Average real estate commission rates in Florida
Florida's commission rates have historically hovered around 5 to 6 percent total, split evenly. After the settlement, that's shifting. Here's roughly where things stand in 2026:
Statewide Florida average: 4.8 to 5.5 percent total (down from 5 to 6 percent)
Buyer's agent commission: typically 2 to 2.5 percent now, not 2.5 to 3 percent
Listing agent commission: 2.5 to 3 percent
The shift isn't huge, but it's real. More sellers are offering lower buyer agent commissions. More buyers are negotiating. And low-commission alternatives like Homa are taking real market share.
Real estate commission calculator: what you'd actually pay
Quick reference for different home prices at typical commission rates:
That's just the buyer's agent. Add the listing side and you're looking at twice those numbers for total commission in the deal.
Buy Smarter with Homa
Take control and save thousands on your path to homeownership
Buy Smarter with Homa
Take control and save thousands on your path to homeownership
Buy Smarter with Homa
Take control and save thousands on your path to homeownership
Who actually pays the buyer's agent now?
Three options post-settlement:
The seller still pays. Most sellers still offer to pay the buyer's agent commission because they want to attract buyers. In most transactions we're seeing in 2026, the seller is covering it, though often at a lower rate than before.
The buyer pays. If the seller refuses, the buyer writes a check out of pocket, rolls it into the loan, or negotiates a concession.
It gets split. Seller pays part, buyer pays part. Or buyer pays and seller credits that amount back.
The key point: it's now negotiable, and nothing is assumed.
How commission rebates work
Here's where it gets interesting for buyers. In most states (including Florida and Texas), real estate agents can legally give part of their commission back to the buyer. It's called a commission rebate.
Say the seller is offering to pay a 2.5 percent buyer's agent commission on a $500,000 home. That's $12,500. A low-commission brokerage like Homa might charge a fraction of that for the same service. What happens to the difference?
With Homa, it comes back to you. You can take it as cash at closing, apply it to your down payment, or (this is the smart play right now) use it to buy down your mortgage rate. A $7,500 rebate on a $500,000 loan can knock your rate down by about 0.5 to 0.75 percent. That's roughly $150 to $225 less in your mortgage payment every month, for the next 30 years.
Low commission real estate agents: what are your options?
Post-settlement, the low-commission space has gotten crowded. Your main options:
Traditional full-service at 2.5 to 3 percent. Still the biggest category. Works for buyers who want full hand-holding and don't care about the cost.
Discount brokerages at 1 to 2 percent. Some national brands, some local. Usually less service than full commission.
Low-commission brokerages like Homa. You pay one transparent fee tied to your home price. Any commission the seller offers above that comes back to you as a credit.
Totally agent-free. You hire a real estate attorney for contract review, use an app to write offers, and represent yourself. Cheapest option, most work.
For buyers who want real service but don't want to hand over 3 percent, a low-commission brokerage like Homa is where it's at. You're not sacrificing service. You're just paying for what the service actually costs, not a runaway percentage of your home's price.
Is a 3 percent commission ever worth it?
Rarely. Even in the situations people assume require a 3 percent agent—complex transactions, unique properties, hot competitive markets, or relocations where you can't be on the ground—Homa’s service actually outperforms a traditional 3 percent agent. In aggressive markets, buyers can use the Homa credit to raise their offer price and win the home without paying more out of pocket. For relocations, our virtual showings let you tour and evaluate properties without ever flying in. You get full-service representation on the complex stuff and keep the money that would have disappeared into a 3 percent commission.
For most transactions, though? 3 percent is more than the service requires. The housing market has changed. Tools are better. Information is more available. The value an agent adds is real but capped. Paying them a percentage of a $600,000 home makes no more sense than paying your accountant a percentage of your income.
How Homa's commission model works
Homa charges a flat 1% fee, only paid at closing. That fee covers a licensed agent, MLS access, offer writing, negotiation, contract review, inspection coordination, and closing. Everything a full-service agent does.
Any commission the seller offers above our 1% fee comes back to you. On the average $528,000 home, that's around $10,560 credited back at closing. You decide what to do with it:
Take it as cash at closing
Apply it to your down payment
Use it to buy down your mortgage rate
That last one is where buyers are getting the most value in 2026. With mortgage rates hovering where they are, using a rebate to reduce your rate saves you tens of thousands over the life of the loan. A lot more than whatever small service difference exists between a 3 percent agent and a 1 percent option like Homa.
The bottom line
Agent commissions are no longer a hidden cost. The settlement made them visible, negotiable, and comparable. Buyers who understand the math are keeping thousands of dollars that used to silently disappear into the traditional model.
If you're buying a home in 2026, know what you'd pay at 3 percent, know what you'd pay with a low-commission brokerage like Homa, and make an actual choice. For most buyers, that choice saves real money. Use it for a better rate, a better down payment, or a better life after you move in.
Who actually pays the buyer's agent now?
Three options post-settlement:
The seller still pays. Most sellers still offer to pay the buyer's agent commission because they want to attract buyers. In most transactions we're seeing in 2026, the seller is covering it, though often at a lower rate than before.
The buyer pays. If the seller refuses, the buyer writes a check out of pocket, rolls it into the loan, or negotiates a concession.
It gets split. Seller pays part, buyer pays part. Or buyer pays and seller credits that amount back.
The key point: it's now negotiable, and nothing is assumed.
How commission rebates work
Here's where it gets interesting for buyers. In most states (including Florida and Texas), real estate agents can legally give part of their commission back to the buyer. It's called a commission rebate.
Say the seller is offering to pay a 2.5 percent buyer's agent commission on a $500,000 home. That's $12,500. A low-commission brokerage like Homa might charge a fraction of that for the same service. What happens to the difference?
With Homa, it comes back to you. You can take it as cash at closing, apply it to your down payment, or (this is the smart play right now) use it to buy down your mortgage rate. A $7,500 rebate on a $500,000 loan can knock your rate down by about 0.5 to 0.75 percent. That's roughly $150 to $225 less in your mortgage payment every month, for the next 30 years.
Low commission real estate agents: what are your options?
Post-settlement, the low-commission space has gotten crowded. Your main options:
Traditional full-service at 2.5 to 3 percent. Still the biggest category. Works for buyers who want full hand-holding and don't care about the cost.
Discount brokerages at 1 to 2 percent. Some national brands, some local. Usually less service than full commission.
Low-commission brokerages like Homa. You pay one transparent fee tied to your home price. Any commission the seller offers above that comes back to you as a credit.
Totally agent-free. You hire a real estate attorney for contract review, use an app to write offers, and represent yourself. Cheapest option, most work.
For buyers who want real service but don't want to hand over 3 percent, a low-commission brokerage like Homa is where it's at. You're not sacrificing service. You're just paying for what the service actually costs, not a runaway percentage of your home's price.
Is a 3 percent commission ever worth it?
Rarely. Even in the situations people assume require a 3 percent agent—complex transactions, unique properties, hot competitive markets, or relocations where you can't be on the ground—Homa’s service actually outperforms a traditional 3 percent agent. In aggressive markets, buyers can use the Homa credit to raise their offer price and win the home without paying more out of pocket. For relocations, our virtual showings let you tour and evaluate properties without ever flying in. You get full-service representation on the complex stuff and keep the money that would have disappeared into a 3 percent commission.
For most transactions, though? 3 percent is more than the service requires. The housing market has changed. Tools are better. Information is more available. The value an agent adds is real but capped. Paying them a percentage of a $600,000 home makes no more sense than paying your accountant a percentage of your income.
How Homa's commission model works
Homa charges a flat 1% fee, only paid at closing. That fee covers a licensed agent, MLS access, offer writing, negotiation, contract review, inspection coordination, and closing. Everything a full-service agent does.
Any commission the seller offers above our 1% fee comes back to you. On the average $528,000 home, that's around $10,560 credited back at closing. You decide what to do with it:
Take it as cash at closing
Apply it to your down payment
Use it to buy down your mortgage rate
That last one is where buyers are getting the most value in 2026. With mortgage rates hovering where they are, using a rebate to reduce your rate saves you tens of thousands over the life of the loan. A lot more than whatever small service difference exists between a 3 percent agent and a 1 percent option like Homa.
The bottom line
Agent commissions are no longer a hidden cost. The settlement made them visible, negotiable, and comparable. Buyers who understand the math are keeping thousands of dollars that used to silently disappear into the traditional model.
If you're buying a home in 2026, know what you'd pay at 3 percent, know what you'd pay with a low-commission brokerage like Homa, and make an actual choice. For most buyers, that choice saves real money. Use it for a better rate, a better down payment, or a better life after you move in.
