Do Buyers Pay Realtor Fees in Chicago? A 2024 Guide
For years, homebuyers in Chicago typically didn’t have to worry about paying their real estate agent’s commission—it was traditionally covered by the seller. However, recent legal changes and lawsuit settlements have altered the real estate landscape, meaning buyers may now be responsible for paying their agent directly.
So, do buyers in Chicago have to pay realtor fees? Let’s break it down.
How Realtor Fees in Chicago Have Traditionally Worked
Seller Pays Both Agents: Historically, the seller paid the commission for both the listing agent (seller’s agent) and the buyer’s agent out of the sale proceeds.
Commission Split: The total commission (typically 5-6% of the home price) was split between the seller’s agent and the buyer’s agent.
No Direct Cost to Buyers: Buyers benefited by getting professional representation without paying out-of-pocket fees.
But a recent lawsuit settlement is changing the way these commissions are handled.
What’s Changing? New Commission Rules in 2024
Due to recent legal settlements involving the National Association of Realtors (NAR), sellers are no longer required to offer compensation to buyer’s agents.
This means:
✅ Buyers may need to pay their own agent directly instead of relying on seller-paid commissions.
✅ Sellers can still offer commission, but it’s no longer required.
✅ Negotiation is key—buyers and agents must agree on payment terms before working together.
📌 Key takeaway: While sellers can still offer a commission, some may choose not to, leaving buyers responsible for compensating their agents.
How Much Are Realtor Fees in Chicago?
The standard real estate commission in Chicago is 5-6% of the home price.
Traditionally, this amount was split between the buyer’s and seller’s agents.
Now, buyers may need to negotiate agent fees or agree on a flat fee for services.
If the seller does not offer commission, buyers may need to:
💰 Pay their agent an hourly fee or flat fee.
💰 Cover the standard 2.5-3% commission themselves.
💰 Negotiate a rebate or reduced fee with their agent.
How Can Buyers Avoid Paying Realtor Fees?
Even with these changes, buyers can still avoid paying out-of-pocket for realtor fees:
🔹 Work with Sellers Who Offer Buyer’s Agent Commission – Many sellers still offer a commission to attract buyers.
🔹 Negotiate with Your Agent – Some agents may reduce their fees or offer a commission rebate.
🔹 Consider Dual Agency (Use the Seller’s Agent) – This can reduce costs, but it means you won’t have full representation.
📌 Key takeaway: Buyers should ask about commission agreements upfront to avoid unexpected costs.
Should You Still Use a Realtor as a Buyer?
Even if buyers are responsible for realtor fees, hiring a real estate agent is still highly recommended. A good agent can:
✔️ Find the best deals and negotiate on your behalf.
✔️ Navigate inspections, contracts, and closing processes.
✔️ Protect your interests and prevent costly mistakes.
Buying a home is a major financial decision, and having an experienced agent can save you money in the long run.
Final Thoughts: Do Buyers Pay Realtor Fees in Chicago?
✅ Historically, sellers paid buyer’s agent commissions.
✅ New rules allow sellers to opt out, meaning buyers may have to cover their own agent’s fees.
✅ Buyers should negotiate commissions upfront and explore cost-saving strategies.
If you’re planning to buy a home in Chicago, make sure to discuss agent fees before signing any agreements. A good real estate agent can help you navigate the new rules and ensure you still get the best deal possible.
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Sources:
National Association of Realtors (NAR) Settlement News: Source
Zillow Buyer’s Guide: Source
Chicago Association of Realtors: Source
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