In most South Carolina home sales, the seller pays the realtor fees for both sides of the transaction, and the amount comes out of the seller’s proceeds at closing rather than as a separate check. That has been the default for decades, and it is still the default today. What changed in 2024 is that a buyer can now end up paying their own agent directly if the seller declines to cover that side of the commission.
How the Seller’s Payment Happens at Closing
The seller’s obligation starts with the listing agreement signed before the home goes on the market. That contract sets the total commission as either a percentage of the sale price or a flat dollar amount, and South Carolina law requires the compensation term to be in writing with the exact amount or the method used to calculate it.1South Carolina Legislature. South Carolina Code Title 40 Chapter 57 Section 40-57-135
At closing, the settlement attorney does the math. The commission is subtracted from the seller’s gross proceeds and routed to each brokerage from the attorney’s trust account after the deed is recorded. The deduction shows up itemized on the closing disclosure and settlement statement, so the seller can see exactly what came off the top before the remaining funds are wired out.
When the Buyer Ends Up Paying
The National Association of Realtors settlement that took effect on August 17, 2024 changed two things that matter here. Offers of buyer-agent compensation can no longer appear on any Multiple Listing Service, and a buyer working with a Realtor must sign a written buyer agreement before touring a home in person or virtually.2National Association of REALTORS®. What the NAR Settlement Means for Home Buyers and Sellers
Sellers can still offer to pay the buyer’s agent, and many do because it widens the pool of offers. They just communicate that offer off the MLS now, through their agent, in the listing description, or during negotiation. If the seller does not offer buyer-agent compensation, the buyer is responsible for paying their own agent the amount spelled out in the written buyer agreement.3National Association of REALTORS®. Compensation, Commission and Concessions
The written-agreement requirement does not kick in the moment you talk to an agent. Visiting an open house on your own or asking general questions about an agent’s services does not trigger it.4National Association of REALTORS®. Consumer Guide to Written Buyer Agreements It applies once an agent starts actively working for you, such as scheduling private showings, pulling comparable sales, or submitting an offer on your behalf.
What Commissions Typically Cost
Total commissions in South Carolina generally run between 5% and 6% of the sale price, with post-settlement competition pushing some rates lower. On a $400,000 home at 5.5%, the commission comes to $22,000. That amount typically gets divided between the two brokerages, often evenly, so each side would receive $11,000 in that example.
The split is not always 50/50. A listing broker might offer the cooperating broker 2.5% while keeping 3%, or the reverse. From the seller’s perspective, the total percentage is what comes out of the proceeds; how the two firms divide it does not change the bill.
Negotiating the Rate
Commission rates are never set by law. Every fee is negotiable between you and the brokerage before any agreement is signed.5South Carolina REALTORS. NAR Consumer Guide: Written Buyer Agreements If an agent describes a rate as “standard” or “required,” no regulatory body in South Carolina mandates a specific percentage.
Beyond negotiating the percentage itself, you can look at different pricing models. Some brokerages offer flat-fee listing services for a set dollar amount regardless of the sale price, which can save money on higher-value properties. Others use tiered packages where you pay more for full-service marketing and less if you handle showings or photography yourself. Whatever you agree to, it has to be documented in the listing or buyer representation agreement before work begins, and once signed, the rate holds for the contract’s duration unless both sides sign a written amendment.1South Carolina Legislature. South Carolina Code Title 40 Chapter 57 Section 40-57-135
Watch for brokerage administrative fees stacked on top of the commission. These are sometimes called transaction fees or broker service fees and cover document management and compliance costs. They can add a few hundred dollars at closing and are sometimes negotiable too.
Dual Agency and Who Pays What
Dual agency is when a single brokerage represents both the buyer and the seller in the same transaction. South Carolina allows it, but only with prior written consent from both parties, and the consent form must explain that the brokerage’s clients have potentially conflicting interests and that the firm’s duties to each side are limited.6South Carolina Legislature. South Carolina Code of Laws Title 40 Chapter 57 – Section 40-57-350
Because both sides of the commission flow to the same brokerage, sellers sometimes negotiate a lower total rate when dual agency comes up. South Carolina law does not require a discount, so whether you get one depends on your negotiation. Raising it before signing the dual-agency agreement gives you the most room to move.
How the Commission Affects Your Taxes
The IRS treats a real estate commission as a selling expense. The commission reduces your “amount realized” on the sale, which is the figure used to calculate whether you owe capital gains tax. Sell a home for $450,000 and pay $24,750 in commissions, and your amount realized drops to $425,250 before you even apply the home-sale exclusion.7Internal Revenue Service. Selling Your Home
Most homeowners who lived in the property as a primary residence for at least two of the five years before selling can exclude up to $250,000 in gains, or $500,000 for married couples filing jointly. Between the commission deduction and the exclusion, most South Carolina sellers owe nothing in federal capital gains tax on the sale. If your gain exceeds the exclusion, every dollar of commission directly reduces the taxable amount.
A buyer who pays their own agent generally cannot deduct that payment as a current expense. The amount gets added to the cost basis of the home instead, which lowers the taxable gain when you eventually sell.8Internal Revenue Service. Basis of Assets