Quick Summary
- Realtors are usually paid a commission at closing, and the amount is not set by law. It is negotiable.
- Since August 17, 2024, offers of compensation to buyer brokers can no longer appear in the MLS, and buyers working with a realtor sign a written agreement before touring homes.
- Virginia already required written brokerage agreements, with a termination date and the fees and services spelled out, before the national settlement.
- A buyer’s broker cannot receive more than the amount in the buyer agreement, from any source.
- Sellers can still choose to offer buyer-broker compensation or seller concessions; it is negotiated, not automatic.
In this post: How realtors are paid | What changed in 2024 | For sellers | For buyers | FAQ | Sources
How Realtors Are Paid
Most realtors are paid by commission rather than salary. The fee is usually a percentage of the sale price or a flat amount, it is paid at settlement, and it goes to the realtor’s brokerage, which then pays the realtor under their own agreement. If the sale does not close, there is usually no commission.
The fee, who pays it and when are all set in writing in a brokerage agreement. Nothing about the amount is standard or required by law.
What Changed in 2024
A national settlement involving the National Association of REALTORS changed several practices, effective August 17, 2024:
- No compensation offers in the MLS. Listings in the multiple listing service no longer show what a seller will pay a buyer’s broker.
- Written buyer agreements before touring. A realtor working with a buyer must have a written agreement in place before touring a home with them.
- Clear, capped compensation. The buyer agreement must state the compensation in a clear amount or rate, and the buyer’s broker cannot accept more than that amount from any source.
In Virginia, written brokerage agreements were already required by state law. Under the Code of Virginia, they must include a definite termination date and describe the fees and services; if no end date is stated, the agreement ends after 90 days.
What This Means for Sellers
Your listing agreement sets your listing brokerage’s fee. Separately, you decide whether to offer anything toward a buyer’s broker or to consider buyer requests for concessions in an offer. Those decisions affect how many buyers can afford your home, so talk them through with your realtor before you list. Our guide to listing and buyer agreements covers the documents.
What This Means for Buyers
Before touring, you and your realtor sign a buyer agreement that says what your realtor will be paid. You can ask the seller to cover some or all of it as part of your offer, and your lender can tell you how seller concessions interact with your loan program. If the seller pays less than your agreement, you are responsible for the difference unless your agreement says otherwise, so read it carefully and ask questions.
FAQ
Who pays the realtor in Virginia?
Sellers pay their listing brokerage under the listing agreement. A buyer’s broker is paid under the buyer agreement, either by the buyer, by the seller through a negotiated concession or offer, or a combination.
Are realtor commissions set by law?
No. Commissions are not set by law and are fully negotiable.
Do I need to sign an agreement just to see a house?
If a realtor is touring homes with you, yes, a written buyer agreement is required first. Agreements can be limited in time and scope, so ask for terms that fit you.
Can a buyer’s realtor be paid by both the buyer and the seller?
Only up to the total stated in the buyer agreement. The broker cannot receive more than that amount from all sources combined.
Sources
- Code of Virginia, § 54.1-2137, brokerage agreements
- Virginia REALTORS, NAR settlement details for Virginia
- National Association of REALTORS, The facts about the settlement
Updated October 2026. General information, not legal advice. Commissions are not set by law and are fully negotiable.
Questions About Agreements or Fees?
Nikki Lagouros and her team explain every agreement in plain language before you sign. Contact Nikki.