When you read an article about real estate commissions, it feels like a reporter called a few experts and asked what they think. That's usually not how it works.
Here's what actually happens. A writer posts a request on a service that connects journalists with sources. Hundreds of agents see it. The ones who want free publicity send in answers. The writer picks the quotes that fit the story and publishes. The agents get a mention and a link.
The reader gets advice that sounds neutral. But it comes almost entirely from people who earn a percentage-based commission and have every reason to defend it.
We just got one of these requests from New American Funding, a mortgage lender that publishes consumer articles on its website. Here's what they asked:
Working on an article about real estate agent commissions: what buyers and sellers can typically expect to pay, how the NAR settlement has changed who covers the cost, and how to negotiate a fair rate.
They asked six questions. Before we get to our answers, it helps to look at the last time they covered this.
They've written this article before
In September 2024, New American Funding published Buying a Home? How to Negotiate Your Real Estate Agent Commission. A few things stand out.
The byline belongs to the company's SEO Specialist. That's not a criticism of the writer. It tells you what the article is for: ranking in search results and bringing homebuyers to a lender's website.
A flat fee for full service never comes up. Besides having the seller pay, the options it gives buyers are a fee based on a menu of services, a commission cap, or a sliding scale tied to how long the buyer works with the agent.
The fine print tells you the rest. At the bottom of the page, it discloses that NAF Homes is a licensed real estate broker affiliated with New American Funding, and that another affiliate, NAF Cash, charges a transaction fee of 1.50% to 7.5% of the purchase price, depending on the state and program. So a lender with its own real estate businesses is publishing advice about how much you should pay real estate agents. Keep that in mind when you read the next one.
Now, the six questions. Where there's already a published answer, we'll show it. Where there isn't, we'll tell you the answer you're most likely to read. Then you'll see what we sent.
1. What's a typical commission rate after the NAR settlement?
What's been published: The 2024 New American Funding article cited a Redfin report showing the average buyer's agent commission was 2.55% of the sale price as of August 2024, or about $15,377. That's a percentage and an average. It tells you what people paid, not what you should pay.
What we said: Most agents still quote a percentage, often between 2 and 3 percent per side. We've never charged one. We charge $9,750 to represent a buyer and $15,750 to represent a seller. On a $1.5 million Los Angeles home, 2.5 percent per side is $37,500 each, $75,000 total. The work doesn't cost more just because the house does.
The difference: An average percentage is still a percentage. We gave you a price.
2. Are sellers still covering the buyer's agent fee?
The answer you'll probably read: In most cases, yes. Offering to pay the buyer's agent attracts more buyers and helps the home sell faster.
What we said: Usually, yes. But now it's negotiated in the offer instead of being posted on the MLS. The real change is on the buyer's side. Buyers now sign a written agreement with their agent, and if the seller won't cover the fee, the buyer owes whatever that agreement says. That makes the number in the agreement the most important thing to look at.
The difference: The typical answer tells sellers to keep paying. Ours tells buyers what they're actually on the hook for.
3. What's the biggest misconception buyers have about who pays their agent?
What's been published: A Yahoo Finance explainer on the NAR settlement addresses buyers who think they now have to pay their agent out of pocket. A Chicago broker quoted there says many sellers are still covering the full buyer's agent commission. The message buyers take away: your agent is still free.
What we said: The biggest misconception is that the agent is "free." The money comes out of the deal either way, and it's built into the price. And if your agent earns more when you pay more, think about what that means. A flat fee removes that incentive.
The difference: "It won't cost you anything" is the misconception.
4. What do sellers get for their commission that's worth the cost?
The answer you'll probably read: Pricing expertise, professional photography, marketing, access to buyers, and skilled negotiation. A good agent more than pays for themselves.
What we said: Sellers should get pricing, preparation, marketing, and protection in the negotiation. The most valuable part is getting disclosures and inspections done upfront so there are no surprises in escrow. On our listings, floor dimensions go on the MLS, and every disclosure and inspection is downloadable before anyone writes an offer. Ask any agent exactly what they'll do. If the answer is "list it and host an open house," that's not worth 2.5 percent.
The difference: Everyone claims they pay for themselves. We told you what to ask to find out.
5. How do you bring up negotiating commission without it getting awkward?
What's been published: A Chicago-area broker quoted in the 2024 New American Funding article recommended an open, transparent conversation that gets past the discomfort of talking about money. A real estate professor in the same piece summed it up as "negotiate service, not fee."
What we said: Make it about the plan. Ask: "What exactly will you do for this fee, and what would it cost as a flat dollar amount?" A good agent can answer that easily. If a question about their pay makes them uncomfortable, imagine how they'll handle a tough negotiation for you.
The difference: "Negotiate service, not fee" is advice that keeps the fee where it is. We think you should negotiate both, and we gave you the exact question to ask.
6. What's a common mistake in commission negotiations?
The answer you'll probably read: Choosing an agent based on the lowest fee. You get what you pay for, and a discount agent can cost you more in the end.
What we said: People negotiate half a point off and then let the same agent represent both sides of the deal. That's called dual agency, and at that point nobody is fully on your side. We don't allow it. The other mistake is signing a buyer agreement without reading how long it lasts and what happens if the seller won't pay.
The difference: "You get what you pay for" is how the industry talks you out of asking. The real risk is who your agent is actually working for.
The takeaway
When you read real estate advice, ask who's giving it and how they get paid. Most of what gets published is written to rank in search results, quotes agents who charge a percentage, and sometimes runs on websites owned by companies with their own real estate businesses. That doesn't make every answer wrong. It does shape what you hear.
Arrivva has run a flat-fee, full-service brokerage for 10 years. I've been a broker since 1997, with more than $3 billion in lifetime transactions. We don't do dual agency. We're not NAR members. We'd rather give you a number than tell you it's negotiable.
When New American Funding publishes this year's version, we'll update this post with what they printed.
Fred Glick, Founder & Broker of Record, Arrivva Inc. CA DRE #01527098 / #01507615