Posted on November 26th, 2025.

Buying or selling a home is often tied to major life changes, from a new job to a growing family or a shift in financial priorities. Along with big decisions about neighborhoods, budgets, and timelines, there are also important questions about how the costs of a real estate transaction are shared. One of the most common questions is simple but important: who actually pays the real estate commission, the buyer or the seller?

Understanding how commissions work can help you see the full picture of your costs and your potential negotiating power. Instead of treating the commission as a mystery line item at closing, it helps to know why it exists, how it is calculated, and where there may be room for flexibility. This knowledge can also guide you as you choose an agent and discuss how they will be compensated.

As commission practices evolve, especially with new real estate commission rules for buyers in South Carolina, taking time to learn the basics puts you in a stronger position. You do not need to become a legal expert, but you should feel comfortable asking questions and reviewing how any fees are structured in your purchase or listing documents. That clarity helps you make choices that support your long-term financial goals.

Understanding Real Estate Commissions

A real estate commission is the fee paid to the agents involved in helping a buyer and seller complete a home sale. It is typically calculated as a percentage of the final sale price and is agreed to in advance, often when a seller signs a listing agreement or when a buyer signs a buyer representation agreement. In many markets, including Columbia, that percentage often falls in the range of about 5% to 6%, though it is never guaranteed or set by law.

That total commission is usually split between the listing agent (who represents the seller) and the buyer’s agent (who represents the buyer). The split itself can vary depending on the agreement between brokerages. This structure reflects the work done on both sides of the transaction: marketing the property, coordinating showings, advising on pricing, writing and reviewing offers, and managing the steps between contract and closing. 

Historically, the seller has agreed to pay the full commission from the sale proceeds. In that traditional model, the seller’s broker then shares a portion with the buyer’s broker. From the buyer’s perspective, it often feels like they are not paying a commission at all, even though the cost is usually factored into the overall sale price and the economics of the deal. This is why it is helpful to see the commission as part of the total cost structure of the transaction, rather than an add-on fee.

Commissions, however, are always negotiable. There is no fixed or required rate, and different situations may call for different arrangements. For example, a unique property, a very high-priced home, or a more streamlined transaction might lead to a different commission percentage or structure. In some cases, a seller and listing agent may agree on reduced services for a lower fee, while others may choose a full-service model that reflects a higher level of marketing and support.

Recent conversations about new real estate commission rules for buyers in South Carolina and similar changes at the national level have brought more attention to transparency. Buyers may see clearer written agreements that spell out exactly how their agent is paid and what happens if the seller is not offering compensation to the buyer’s broker. In some situations, buyers may agree to pay all or part of their agent’s commission directly, sometimes with the goal of asking the seller for concessions to offset that cost.

Buyer and Seller Responsibilities

In the traditional structure, the seller agrees to pay the commission as part of their listing agreement. The listing agreement typically states the total commission percentage and explains that this fee will be paid from the seller’s proceeds at closing. The listing broker then offers a portion of that fee to the buyer’s broker as an incentive to bring qualified buyers to the property. This arrangement has long been the standard in many markets, including Columbia.

For sellers, this means the commission is considered when pricing the home and estimating net proceeds. When a seller looks at a net sheet, they see the contract price minus closing costs, including commissions, taxes, and other fees. Understanding how the commission affects their bottom line helps them set realistic expectations and decide whether a particular offer meets their financial needs. Clear communication with the listing agent is important so there are no surprises at closing.

Buyers, on the other hand, often feel the commission indirectly rather than as a separate bill. When the seller pays the buyer agent commission from the sale proceeds, it can appear as though the buyer’s representation is “free.” In reality, the commission is part of the economics of the transaction and may influence pricing and negotiations. This is why buyers benefit from asking questions about who pays the real estate buyer agent commission in Columbia SC and how that shows up on their disclosures.

While less common, there are situations where buyers may be responsible for paying part or all of their agent’s commission. For example, if a seller is not offering compensation to a buyer’s broker, or if a buyer signs an agreement that specifies a minimum fee, the buyer might agree to pay the difference. In some cases, buyers can ask the seller to cover this amount through a higher purchase price or a closing cost concession, but that depends on the market and the seller’s flexibility.

These evolving models make written agreements more important than ever. Buyers should expect to sign a buyer agency or buyer representation agreement that spells out how their agent is paid, whether by the seller, by the buyer, or by a combination of both. Reviewing this agreement carefully, asking questions, and making sure it reflects your knowledge of the commission structure helps protect your interests. 

As the Columbia market adjusts to new real estate commission practices, both buyers and sellers benefit from treating commission discussions as a normal part of the process. When you know in advance who is paying what and how the fee is structured, you can make informed decisions about offers, list prices, and negotiations. That clarity helps keep the focus on the bigger picture: choosing the right home or securing the right sale on terms that support your financial goals.

Negotiating Commissions and Seller Concessions

Negotiating commissions does not have to feel uncomfortable or confrontational. Instead, it can be part of a straightforward discussion about expectations, services, and value. Buyers and sellers in Columbia who understand the traditional framework can ask informed questions about possible adjustments without undermining the relationship with their agents. The goal is not to “win” against your agent but to reach a fair agreement that reflects the work involved in your transaction.

For buyers, this often starts with a conversation about buyer agent fees when buying a home in Columbia. The buyer representation agreement should outline what the agent charges and how they expect to be paid. If the agreement sets a fee that is higher than what a seller is offering to a buyer’s broker, you can talk about how to handle that gap. Options may include requesting seller concessions, adjusting the purchase price, or modifying the agreement. The important thing is to have this discussion before you write offers.

Seller concessions can be a practical way to address commission-related costs, especially in a market where buyers may be asked to contribute more toward their own representation. In simple terms, seller concessions happen when the seller agrees to pay certain buyer expenses at closing, often by folding them into the overall deal structure. These concessions can include closing costs, prepaid expenses, or, in some cases, funds that help the buyer handle their share of commissions or other fees.

When using seller concessions to help manage commission-related expenses, it can help to:

• Look for sellers who may be motivated by timing or other factors and open to flexible terms.
• Work with your agent to include concession requests as part of a thoughtful, well-supported offer.
• Consider the seller’s equity and financial position to gauge how much room there may be for concessions.
• Review lender limits on how much the seller can contribute toward your closing costs.
• Structure your offer so that concessions help you while still making the deal appealing to the seller.

These strategies are most effective when combined with a clear understanding of current market conditions. In a competitive seller’s market, large concessions may be harder to secure. In a more balanced environment, sellers might be more open to helping buyers manage closing costs, including indirect commission-related expenses, if it means a smoother transaction. 

As commission rules and consumer expectations continue to evolve, staying informed and communicating openly with your agent is fundamental. The structure that worked a decade ago may not be the standard tomorrow, especially with new real estate commission rules. By treating commissions, fees, and concessions as normal topics of discussion, you give yourself more tools to shape a purchase or sale that fits your financial situation and long-term plans.

Related: Why Local Market Knowledge is Vital for Real Estate Success

Making Smart Commission Decisions in Columbia

In Columbia’s changing real estate market, you do not have to sort through commission rules or negotiation strategies on your own. At Stacy Sells Columbia Homes, we walk you through how commissions work, what the latest South Carolina updates mean for you, and which options fit your budget and comfort level as a buyer or seller.  We take time to review your goals, explain how our compensation is structured, and show you how buyer and seller costs appear on your closing documents. 

Confused by the new commission rules? Let’s grab lunch—Our treat! We can discuss your budget, your buying options, and how we protect your best interests! 

Feel free to reach out via email or call at (803) 586-0776.