How Realtor Commissions Work in Dayton and Beavercreek After the 2024 Changes

Overview of Realtor Commissions

There is a lot of confusion around Realtor commissions, especially after the National Association of Realtors settlement that took effect in August of 2024. The biggest misunderstanding is how commissions are structured and who actually pays whom.

The Two Sides of a Real Estate Commission

In most residential real estate transactions, there are two sides to the commission: the listing side and the selling side.

Listing Agent Compensation

In the Dayton and Beavercreek real estate market, it is still common to see approximately 3% paid to the listing agent. This fee compensates the Realtor for pricing strategy, professional marketing, online exposure, negotiating offers, hosting showings or open houses, and guiding the seller through the entire transaction from listing to closing.

Buyer’s Agent Compensation

In addition, sellers have traditionally offered around 3% to the buyer’s agent. The buyer’s agent represents the purchaser, brings the buyer to the property, negotiates on their behalf, manages inspections, financing deadlines, and ensures the deal successfully closes.

Why Reducing Buyer Agent Compensation Can Backfire

Since the 2024 changes, sellers sometimes ask whether they can reduce or eliminate compensation on the buyer side. While that may sound appealing on the surface, it can be counterproductive.

If the seller does not offer compensation, the buyer must pay their agent directly out of pocket. Most buyers already face down payments, closing costs, and moving expenses. It is FAR easier for buyers when their agent’s fee is built into the transaction price (baked in the cake) rather than paid separately in cash. This also makes it easier for a buyer to meet a higher sale price as well.

The Real Goal: Net Proceeds

The goal is the most net proceeds, not just reducing one line item like buyer agent fees. Properly structured commission strategies often lead to more buyer interest, stronger offers, and smoother closings in the Dayton-area market.