How Much Does a Buyer's Agent Cost in California?

If you're buying a home in California, one of the first questions you'll run into is: what does a buyer's agent actually cost? The answer has gotten more complicated — and more negotiable — since the NAR settlement changed how commissions work in 2024.

The typical cost

Buyer's agent commission in California averages around 2.5% of the purchase price. On a $900,000 home — close to the state median — that's $22,500. On a $1.2 million home in Los Angeles, it's $30,000. These are real numbers that come directly out of the transaction, whether the seller pays them or you do.

The range is typically 2% to 3%, depending on the market, the brokerage, and what you negotiate. Some luxury agents charge less on a percentage basis because the dollar amounts are so large. Some agents in competitive markets charge more because the work involved in winning a home is intense.

Who actually pays it?

Traditionally, the seller paid both the listing agent and the buyer's agent commission. Many sellers still offer to pay the buyer's agent as part of their listing — it helps attract more buyers. But since the NAR settlement, nothing is guaranteed. Some sellers offer 2.5%, some offer 2%, some offer nothing.

Under California's AB 2992, you're required to sign a buyer-broker agreement that specifies your agent's compensation before they can represent you. If the seller covers it, great. If not, you're responsible for the difference. Either way, you now see the number upfront and agree to it in writing.

How to reduce what you pay

The most effective way to pay less is to match the service to what you actually need. If you've already found the home — at an open house, on Zillow, through a friend, or at a new construction site — you don't need an agent who spends weeks driving you around. You need someone to handle the offer, negotiation, and closing.

Agents who specialize in the offer-to-close stage typically charge around 1% because they've cut the most time-consuming part of the job. You still get licensed representation, fiduciary duty, expert negotiation, and transaction management. You just don't pay for services you didn't use.

The difference between 1% and 2.5% on a $900,000 home is $13,500. That's money that either goes back in your pocket or makes your offer more competitive to the seller.

What you should be getting for the fee

Regardless of what percentage you pay, your buyer's agent should be drafting your purchase agreement, advising on offer strategy and pricing, negotiating on your behalf, coordinating inspections and reviewing reports, managing the escrow and closing process, communicating with your lender, and reviewing title and disclosures. If your agent isn't doing all of this, you're overpaying at any percentage.