How Realtor Commission Works for Both the Listing Agent and Buyer’s Agent

Learn how realtor commission works for buyers & sellers in Dallas/Fort Worth with Wendy Danner, your trusted DFW real estate expert.

One of the most common questions in real estate is: How do agents get paid? Whether you’re buying or selling a home in the Dallas/Fort Worth area, it’s important to understand how commission works and what it covers.

The Listing Agent’s Role

When a homeowner decides to sell, they typically sign a listing agreement with a real estate agent. This agreement outlines the agent’s responsibilities—pricing the property, marketing it, scheduling showings, negotiating offers, and guiding the seller through closing -- to name a few. In exchange for these services, the seller agrees to pay a commission, usually calculated as a percentage of the home’s final sales price.

Depending on the terms of the listing agreement, the listing agent may share a portion of that commission with the buyer’s agent. This means sellers may cover the commission for both sides of the transaction. One main benefit of doing this? To help market the property and bring in more buyers!

The Buyer’s Agent’s Role

On the buyer’s side, the agent’s commission is paid by the buyer, but often comes out of the seller’s proceeds at closing. That means most buyers don’t directly pay their agent for representation. The buyer’s agent works to protect their client’s best interests—finding suitable homes, analyzing market value, writing and negotiating offers, coordinating inspections, and keeping the process on track until closing.

When the commission is already built into the transaction, buyers receive professional guidance and advocacy at no additional out-of-pocket cost; however, this is often determined by the terms of the seller's listing agreement, and the terms of the buyer's offer on the home. The seller may be more likely to offer buyer's agent commission with the ideal offer to purchase.

What Does Commission Cover?

Commission covers far more than just showing homes. It pays for marketing expenses, professional photography, MLS exposure, advertising, legal expertise, negotiations, and the time and effort agents devote to ensuring a smooth process. In short, it reflects the value of having knowledgeable representation on your side.

Is Commission Negotiable?

Yes—commission is always negotiable. Rates may vary depending on the property, market conditions, and services provided. A trusted agent like Wendy will walk you through your options so you fully understand the structure and can feel confident about the agreement.

Why It Matters

Understanding commission helps both buyers and sellers see the big picture. Sellers know how their home will be marketed and sold, while buyers can feel confident they’re being fully represented without added cost.

Working with an experienced agent like Wendy Danner with DFW’s Finest Real Estate Group | ARC Realty DFW ensures you have an advocate who brings clarity, transparency, and expertise to every step of your transaction.