Who Pays Realtor Fees in North Carolina?

Real estate transactions in North Carolina involve a process where real estate agents play a significant role in guiding both buyers and sellers. These licensed professionals assist with marketing homes, negotiating offers, and facilitating closing procedures. Understanding how these services are compensated is important for anyone engaging in the state’s real estate market. This article clarifies common practices and contractual arrangements concerning real estate agent fees in North Carolina.

What are Realtor Fees

Real estate fees, often called commissions, compensate real estate brokers for facilitating property transactions. These fees are typically calculated as a percentage of the property’s final sale price. The total commission usually covers the services of both the listing agent, who represents the seller, and the buyer’s agent, who represents the buyer.

North Carolina law does not fix the specific percentage for these fees; instead, it is entirely negotiable between the client and their chosen real estate agent. Rates can vary based on market conditions, the property’s value, and the agent’s scope of services. The agreed-upon commission is then typically divided between the listing brokerage and the buyer’s brokerage.

Seller Responsibilities for Fees

Traditionally, sellers have been responsible for paying the entire real estate commission in North Carolina, covering both their own listing agent’s fees and the buyer’s agent’s fees. This arrangement is typically formalized within a written listing agreement signed by the seller and their chosen real estate brokerage. The commission payment is usually deducted from the proceeds of the home sale at the closing of the transaction. Sellers do not typically pay these fees out-of-pocket before the sale is complete.

While sellers are no longer obligated to pay the buyer’s agent commission due to recent industry changes, they can still offer to pay a concession towards the buyer’s agent’s fees. This practice can incentivize buyer’s agents and potentially lead to greater exposure for the property.

Buyer Responsibilities for Fees

In North Carolina, buyers typically do not directly pay real estate agent fees in traditional transactions, as these have historically been covered by the seller. However, there are specific scenarios where a buyer might become responsible for compensating their own agent. This typically occurs through a “buyer broker agreement,” which is a written contract between the buyer and their real estate agent. North Carolina law requires that such agreements be in writing and signed by the buyer and broker no later than the time an offer is made.

This agreement outlines the services the agent will provide and the compensation structure, which could be a percentage of the purchase price, a flat fee, or even an hourly rate. Buyers may choose to directly pay their agent if the seller is not offering compensation, such as in some For Sale By Owner (FSBO) situations, or if the buyer desires specialized services beyond what a seller-paid commission might cover. While buyers can still request that the seller contribute towards their agent’s fees as part of the purchase offer, the direct payment arrangement ensures the buyer’s agent is compensated regardless of the seller’s contribution.