What could the commission mean for your purchase?

Try a commission rate, split the potential value across real deal structures, and see what each does to your cash, payment and buying power. No signup required.

How much is a buyer's agent commission?

It varies and is negotiable. It's usually expressed as a percentage of the price, and the figure differs from deal to deal. This calculator lets you try 2%, 2.5%, 3% or your own figure; no rate is assumed to be standard.

Who pays the buyer's agent?

It depends on what's agreed. A buyer may pay their agent directly, a seller may offer to pay some or all of it, or they may share it. Buyers working with an agent now usually sign a written agreement that sets out the compensation first.

What happens to that money if I buy without one?

Nothing happens automatically. If a seller was prepared to pay toward a buyer's agent, that amount can become room to negotiate in your offer. Avry calls it potential transaction value.

It is not money paid to you. Whether it exists, and how it can be used, depends on the seller agreeing, your loan program, your lender's limits and the contract.

What are seller concessions?

Money a seller agrees to put toward the buyer's costs, such as closing costs or a rate buydown. Loan programs cap them as a percentage of the price, and the cap depends on the down payment. A lower price, and repairs the seller completes before closing, are negotiated differently and don't count toward that cap.

Can a seller pay my closing costs?

Often, if the seller agrees and your loan program allows it. A credit can't be more than your actual closing costs, and it counts toward the concession cap.

Can a seller pay for a rate buydown?

Yes, if they agree and your lender allows it. A 2-1 temporary buydown lowers the payment for the first two years and costs a set amount, which counts toward the concession cap. A permanent buydown is priced by your lender.

Does a buydown help me qualify?

A temporary buydown doesn't: lenders generally qualify you at the full loan rate, so it lowers early payments without raising your buying power. A permanent buydown lowers the rate itself, so it can lower the payment used to qualify; your lender prices it.

This calculator provides estimates for educational purposes only. It is not a mortgage pre-approval, loan offer, financial advice or guarantee of savings. Buyer's agent compensation varies and is negotiable. Whether any of it becomes room to negotiate, and how it can be used, depends on the property, the seller, your lender, the loan program, the listing agreement and the contract.