If you’re buying or selling a home in Northern Virginia be it in Springfield, Burke or Fairfax you probably wonder: how do real estate agents actually get paid? It’s not always obvious who pays the agent, how much they earn, or how recent regulatory changes affect your transaction. In this article we’ll break down the process in plain language, explain the key models of compensation, walk you through recent rule changes that took effect in 2025, and give you local context for the Fairfax County area so you can confidently interact with agents and set expectations.
The Traditional Commission Model, How It Worked
For many years, the dominant way home sale agents were paid in the U.S. was via commission. That means:
- The home seller signs a listing agreement with a listing agent.
- A commission is agreed often around 5% to 6% of the sale price nationwide.
- When the home sells, the seller pays the commission out of the proceeds, and the listing agent shares a portion with the buyer’s agent (if one is involved).
- The amount each agent makes depends on the total sale price, how many parties were involved, and how the brokerage splits the money.
In other words, the more expensive the home, generally the higher the dollar commission paid and agents had an incentive to sell for a higher price (which benefits you, the client) but also to structure things so the commission is worthwhile.
In the Fairfax County area, where home prices tend to be well above the national median, these dollar-amount commissions can add up quickly. That means choosing the right agent, someone who can deliver value is crucial.
How Commissions Are Split Behind the Scenes
Even though the seller pays the commission (in the old model), the actual payout to the agent involves several layers:
- The listing agent operates under a licensed broker in Virginia. That broker takes a portion of the agent’s commission for example 40 % or 50 %.
- If the listing agent brings in a co-agent or another specialist, the commissions can be further split.
- The buyer’s agent similarly works under a broker and has to split their portion.
So when you hear something like “6% commission,” that doesn’t mean the listing agent takes home 6% of the sale price multiple splits reduce their net amount. For buyers and sellers in Springfield or Burke, it means you should ask your agent what they actually get and what services you’re paying for.
Recent Rule Changes (2024) What You Need to Know
Major changes took effect starting August 17, 2024 following a settlement involving National Association of Realtors (NAR) and the United States Department of Justice (DOJ).
Key shifts:
- Listings on MLS systems can no longer display the amount or percentage of commission being offered to buyer-agents.
- Buyers working with an agent now must sign a written buyer-agency agreement before touring homes, which outlines how the buyer-agent will be compensated.
- Sellers are still free to pay the listing agent, but they are not required to automatically cover or offer compensation to the buyer’s agent. This means compensation becomes a matter of negotiation.
What this means locally:
In Fairfax County markets (Fairfax city, Burke, Springfield), these changes keep the system more transparent. As a seller, you may see fewer listings with “X % to buyer’s agent” publicly shown. As a buyer, you should expect a discussion with your agent early on about their fee and you may have to pay the buyer-agent directly or negotiate a credit at closing rather than assume the seller will cover it.
How Agents Get Paid Now The Models to Know
Even after the rule changes, real-estate agents are still compensated, but the “how” and “who pays” may vary. Here are the main models:
Commission based (percentage of sale price)
Still the most common. For example, a buyer agent may agree to a 2% or 3% fee, which is paid at closing. The seller’s agent’s listing agreement may reflect a typical rate for the seller side.
Flat-fee or fixed-service model
Some agents or brokerages offer a fixed amount for their services rather than a percentage. This is sometimes used for sellers who want a more budget-conscious approach.
Hourly rate or salary
Less common but possible: an agent may charge an hourly fee for consultation, or a brokerage may employ agents on salary plus bonus.
Referral fees or ancillary income
An agent may receive a fee for referring business (e.g., to lenders, moving services) though such arrangements must comply with disclosure rules and brokerage policies.
Negotiated splits
Even in a percentage-based model, the agent’s net take-home depends on their brokerage’s split. An experienced agent in the Fairfax market with strong results may negotiate a higher take-home percentage.
What’s Normal in Northern Virginia-Fairfax Market & Local Trends
When you’re buying or selling in Fairfax County, Springfield or Burke, local market dynamics matter.
Home price levels and commission dollar amounts
Because many homes in the region sell for much higher than the national median, even “standard” commission percentages translate into significant dollar sums. That means value matters: when you hire an agent, you want someone who moves quickly, knows the area, and drives results.
Market conditions and negotiation leverage
- Seller-market (low inventory): Agents may have more leverage, allowing slightly higher fees if demand is intense.
- Buyers-market (more inventory): Agents may compete more on fee or services to win listings/clients.
- In Fairfax County, the market can swing for example inventory might drop in premium neighborhoods near Tysons Corner or Reston, boosting agent demand.
Local service expectations
In Northern Virginia you also benefit from an agent who understands:
- Local school zones (Fairfax County Public Schools)
- Proximity to Metro stations (e.g., Spring Hill, Van Dorn)
- Community amenities (parks near Burke Lake, trails in Springfield)
An agent who is well-versed locally is more likely to earn their fee in your market.
Value for money
Don’t focus solely on percentage focus on what the agent does: marketing, open houses, professional photography, staging, negotiation support, closing coordination. Especially in higher-priced markets, difference in outcome can justify difference in fee.
Frequently Asked Questions
How do I know what my real estate agent will be paid?
You should ask up front. For sellers: your listing agreement will state the fee (percentage or flat) you’ll pay, when it’s due, and how it’s split. For buyers: your agent should present a buyer agency agreement that outlines what you’ll pay, or how compensation will be handled.
Do buyers always pay their agent now?
No, but under the new rules the buyer’s agent’s compensation must be clearly agreed in writing. It might still be paid by the seller as part of the transaction, but that is negotiable.
Are commission rates fixed or standard by law?
No. Agent fees are negotiable. The new settlement emphasised this and aims to make fees more transparent and open for discussion.
How much do real estate agents typically earn in Northern Virginia?
It depends on sale price and split. For example, a 3% fee on a $700,000 home is $21,000. After brokerage splits and costs, the agent’s net is lower. Ask your agent for realistic breakdowns in the Fairfax County market.
What happens if I switch agents or cancel?
Your agreement (listing or buyer agency) should specify how you or the agent can end the relationship. Review the terms carefully before signing (especially with the written buyer agreement requirement) to avoid surprises.
Conclusion
Understanding how real estate agents are paid in Northern Virginia and especially in Fairfax County, Springfield and Burke gives you more power as a buyer or seller. The key takeaways:
- Commissions are still common but the way they’re negotiated and displayed has changed since 2024.
- Agents’ compensation is negotiable and must be documented in writing (especially for buyers).
- In a market like Fairfax, focus not just on “what percentage” but “what services” you are getting.
- Use your local knowledge of school districts, neighbourhood amenities, price trends to select an agent who delivers value.
If you’re planning to buy or sell in the Fairfax County area and want to discuss your situation, goals and fee structure in more detail, reach out.
Any readers with questions or who need real-estate help can contact LIST WITH ELIZABETH – Elizabeth Ann Kline at 703-829-5478.



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