Who Pays the Buyer’s Agent Commission in North Carolina?

One of the most common questions from home buyers today is, “Who pays my real estate agent?” In North Carolina, there isn’t one answer that applies to every transaction. Buyer-agent compensation is negotiable and is established between the buyer and their brokerage in a buyer agency agreement. Depending on how the transaction is structured, the buyer’s agent may be compensated by the seller, through negotiated seller concessions, by the buyer directly, or through a combination of these options.

Despite some confusion following the real estate industry changes that took effect in 2024, sellers are still allowed to pay a buyer’s agent. What changed is that offers of buyer-agent compensation can no longer be advertised through the MLS. A seller can still offer compensation toward the buyer’s agent, and the buyer’s agent can negotiate that amount as part of the transaction. If the amount provided by the seller does not cover the compensation the buyer previously agreed to with their brokerage, the buyer may be responsible for the difference.

I recently saw a good real-world example of why buyers should understand this before making an offer. In a transaction where I represented the seller, we communicated up front how much the seller was willing to offer toward the buyer agent’s compensation. The buyer’s agent accepted that amount and did not ask or negotiate for additional compensation from the seller. At closing, we learned that the buyer was paying an additional amount directly to their agent based on the compensation they had previously agreed to in their buyer agency agreement. Had the buyer’s agent negotiated for additional compensation from the seller, the outcome may have been different. Of course, there is no guarantee that a seller will agree to pay more, but it illustrates why buyers should understand their agreement and discuss compensation with their agent before submitting an offer.

For buyers and sellers in the Charlotte and Lake Norman real estate markets, agent compensation is simply another financial component to consider when evaluating an offer. Purchase price, seller concessions, buyer-agent compensation, due diligence, closing costs, and other terms can all affect the overall value of a transaction. Every situation is different, which is why understanding these details before an offer is made can help avoid surprises later.

Thinking about buying or selling a home, or have questions about the process? Don’t hesitate to reach out. I’m always happy to help you better understand your options and what to expect along the way.