# Real Estate Agent Fees and Closing Costs Explained
Real estate agent commissions sit outside standard closing costs, though sellers typically pay them at closing. The distinction matters for your budget planning.
Agent fees run 5-6% of the sale price in most markets, split between the listing agent and buyer's agent. Sellers pay this cost, which gets deducted from their proceeds at closing. Buyers don't write a separate check for agent commissions.
Closing costs themselves include title insurance, appraisal fees, inspection costs, recording fees, and lender charges. Buyers typically cover 2-5% of the purchase price in closing costs. Sellers pay their own set of expenses, including transfer taxes and title company fees.
The recent NAR settlement has shifted this landscape. Some brokerages now allow buyer's agents to negotiate compensation directly with buyers rather than receiving it from the seller's side. This change affects how agent fees flow through transactions.
Know the difference: agent commissions come from sale proceeds, while closing costs are separate transaction expenses. Your purchase agreement and loan estimate will break down what you owe. Negotiate agent rates upfront with your listing agent if you're selling. Ask your lender for a closing cost breakdown early in the process if you're buying.