In North Carolina, the seller has traditionally paid both the listing agent and the buyer’s agent out of the sale proceeds, usually a combined 5% to 6% of the purchase price. That default changed on August 17, 2024, when the National Association of Realtors settlement took effect. The question of who pays realtor fees in North Carolina is now negotiated transaction by transaction: the seller may still cover both sides, the buyer may pay their own agent directly, or the two sides may split the cost through a concession written into the purchase offer. Every commission in the state is fully negotiable by law.
The Old Default Most People Still Expect
For decades the arrangement was simple. The seller signed a listing agreement committing to a total commission, typically 5% to 6% of the sale price. The listing firm then advertised a share of that commission on the Multiple Listing Service as the offer to whichever firm brought the buyer. Buyers rarely thought about agent fees because their representation was effectively free at the closing table. The cost came out of the seller’s equity, though buyers paid indirectly through the purchase price.
If your mental model of a home sale comes from a friend’s experience before 2024, this is the model you’re picturing. It is no longer automatic.
What the August 2024 NAR Settlement Changed
Two changes from the NAR practice changes matter for the question of who pays.1National Association of Realtors. National Association of Realtors Provides Final Reminder of NAR Practice Change Implementation on August 17, 2024
Agents can no longer advertise offers of buyer agent compensation on the MLS. Sellers who want to offer compensation to a buyer’s agent can still do so, but through their own marketing, agent-to-agent communication, or as a concession in the purchase offer rather than through the MLS field.2National Association of Realtors. Communicating Offers of Compensation
Buyers must now sign a written buyer agency agreement before touring homes with an agent, not before writing an offer as was common practice before.3National Association of Realtors. Consumer Guide to Open Houses and Written Agreements That agreement has to spell out exactly what the buyer’s agent will be paid. Visiting an open house on your own doesn’t trigger the requirement; the first tour with a specific agent does.
Four Ways the Buyer’s Agent Gets Paid Now
With compensation no longer baked into the MLS listing, most North Carolina transactions use one of these arrangements, or a combination of them.
- Seller-paid concession. You ask the seller to pay your agent’s fee as part of your offer. Sellers often agree because it keeps deals moving, especially in balanced or buyer-friendly markets. The concession is written into the offer to purchase, and the funds come from the seller’s proceeds at closing.
- Direct buyer payment. You pay your agent’s fee yourself, either as a percentage of the purchase price or a flat dollar amount set in your buyer agency agreement. This typically runs between 2% and 3% of the sale price, which means budgeting roughly $5,000 to $7,500 on a $250,000 home on top of your down payment and other closing costs.
- Listing firm’s offer. A seller or listing agent may still offer to compensate the buyer’s agent outside the MLS. Your agent can ask the listing firm directly whether compensation is available. If it is, you may owe nothing more, or only the gap between what is offered and what your agreement specifies.
- Combination. Your buyer agency agreement might set a fee of, say, 2.5%, with your agent first seeking compensation from the seller or listing firm and you covering whatever gap remains.
The practical reality is that sellers in North Carolina are still frequently covering the buyer’s agent through concessions, because doing so attracts more buyers and smoother financing. But you can no longer assume it will happen automatically. The conversation about who pays needs to happen before you start looking at houses.
What the Fees Actually Run, and Why They’re Negotiable
North Carolina law prohibits the state Real Estate Commission from setting or regulating commissions, salaries, or fees charged by licensed brokers.4North Carolina Real Estate Commission. North Carolina Real Estate License Law and Commission Rules The standard buyer agency agreement form states in bold capital letters that compensation “is not fixed by law but is set by each broker or firm individually and is fully negotiable.”5North Carolina Association of REALTORS. Standard Form 201 – Exclusive Buyer Agency Agreement
Most listing agents in North Carolina charge somewhere around 2.5% to 3%, and buyer’s agent fees land in a similar range. Those are averages, not rules. A flat fee, an hourly rate, or a reduced percentage are all on the table. Agents handling higher-priced properties may accept lower percentages because the dollar amount is still substantial. Market conditions matter too: in a slow market, agents negotiate more readily; in a hot seller’s market, listing agents have less reason to budge.
If the Seller Pays: Concession Caps by Loan Type
When you’re counting on the seller to cover your agent’s fee through a concession, your loan type sets a ceiling on how much the seller can contribute toward all of your closing costs combined. Going over the limit doesn’t just mean the seller pays less. The excess gets deducted from the sale price for underwriting purposes, which can throw off the loan-to-value ratio and sink the deal.
- Conventional loans (Fannie Mae). The cap depends on your down payment. Less than 10% down allows the seller to contribute up to 3% of the sale price. Between 10% and 25% down, the limit is 6%. More than 25% down allows up to 9%.6Fannie Mae. Interested Party Contributions (IPCs)
- FHA loans. Sellers can contribute up to 6% of the purchase price toward buyer closing costs.
- VA loans. There is no cap on seller-paid normal closing costs, but seller concessions beyond standard closing costs are capped at 4% of the home’s appraised value.
The concession covers everything the seller contributes to your side of the transaction, not just the buyer agent fee. If you’re asking the seller to cover a 2.5% buyer agent fee on a conventional loan with less than 10% down, the 3% cap leaves almost nothing for other costs the seller might help with. Run the numbers with your lender and agent early.
The Paperwork That Locks In Who Pays
North Carolina requires that compensation terms be settled in writing before the transaction gets underway.
Before asking you for any confidential information, every agent in the state must review the NC Real Estate Commission’s Working With Real Estate Agents brochure with you and obtain your signature on the disclosure.7North Carolina Real Estate Commission. Working With Real Estate Agents Brochure
Sellers then sign the Exclusive Right to Sell Listing Agreement, Standard Form 101, with their listing firm. The form specifies the total fee the seller will pay and whether any portion may be shared with a firm representing the buyer.8North Carolina Association of REALTORS. Standard Form 101 – Exclusive Right to Sell Listing Agreement After the settlement, a seller can still agree in this document to offer buyer agent compensation; that offer simply won’t appear on the MLS.
Buyers sign Standard Form 201, the Exclusive Buyer Agency Agreement, which must be in place before touring homes with the agent. The form offers checkboxes for several compensation structures: a percentage of the sale price, a flat fee, a non-refundable retainer credited toward total compensation, or another specified amount.5North Carolina Association of REALTORS. Standard Form 201 – Exclusive Buyer Agency Agreement It specifies that the fee is earned when you enter into a purchase contract and becomes due at closing. Read the compensation section carefully, because it controls what you owe regardless of whether the seller ends up contributing.
How the Money Moves at Closing
In North Carolina, closings must be conducted by a licensed attorney, because the state bar has determined that most acts required to close a real estate transaction constitute the practice of law.9NC REALTORS. Settlement and Closing Broker Version The closing attorney prepares the settlement statement, collects all funds, and disburses payments to the real estate firms based on the signed agency agreements.
If the seller is paying the buyer’s agent through the listing agreement or a concession in the purchase contract, those funds come out of the seller’s equity before the seller receives net proceeds. If the buyer is paying their own agent, the amount appears on the buyer’s side of the settlement statement and adds to the cash needed at closing alongside the down payment, lender fees, and title insurance. Either way, the brokerage firms get paid simultaneously with the title transfer.