Real Estate Commissions in the East Bay: Who Pays What in 2026 After the NAR Settlement
Who pays real estate commission in California in 2026?
In California in 2026, real estate commissions average 5.47% of the sale price — but how they're paid changed significantly after the August 2024 NAR settlement. Sellers are no longer required to offer buyer-agent compensation through the MLS. Instead, buyers negotiate directly with their agents, and sellers can offer to cover the buyer's agent as a seller concession through the purchase contract. In practice, most East Bay sellers still choose to offer this concession because it attracts more buyers — but the structure has changed, and every seller should understand exactly what they're agreeing to before they list.
By Michael Delehanty — Delehanty Group | DRE #01505346 | June 19, 2026
For decades, the rule in residential real estate was simple: the seller paid everyone. You listed your home, your agent took 2.5–3%, and that commission included an offer to pay the buyer's agent another 2.5–3%. The total — usually around 5–6% — came out of your sale proceeds at closing. Buyers didn't pay their agents directly. It was just baked in.
That system ended in August 2024.
The National Association of Realtors settled a landmark class-action lawsuit for $418 million and agreed to change how commissions work across the country. The Bay East Association of Realtors called it "a sea change." If you're buying or selling in Walnut Creek, Concord, Danville, or anywhere else in the East Bay in 2026, here's what the new rules mean for your wallet.
What Actually Changed After the NAR Settlement
Two things changed as of August 17, 2024.
First: Offers of buyer-agent compensation were removed from the MLS. Before the settlement, a listing agent would enter a field in the MLS specifying how much the seller was offering to pay the buyer's agent — say, 2.5%. Every buyer's agent could see it and factor it into their recommendations. That field is gone. Sellers can still offer to cover the buyer's agent, but only through the purchase contract — not the listing.
Second: Buyers must now sign a written buyer representation agreement before touring homes. This is the document that defines what the buyer's agent will be paid and who's responsible for paying it. In California, this requirement is codified in AB 2992. If you've recently gone to tour a home in the East Bay, you've almost certainly been asked to sign one of these before you walked through the door.
If you want a closer look at what that buyer-broker agreement actually says and what to review before you sign, I covered that in detail in my post on California's New Buyer-Broker Agreement: What East Bay Buyers Must Know.
What the settlement did not do: it didn't cap commissions. It didn't tell anyone what to charge. Rates are still fully negotiable — and in practice, they haven't dropped much. The average total commission in California is currently around 5.47%, which is actually slightly higher than pre-settlement averages in some markets.
What East Bay Sellers Are Actually Paying in 2026
Let's talk numbers, because this is what actually matters.
The average total commission in California breaks down roughly like this:
- Listing agent (your agent): ~2.73%
- Buyer's agent: ~2.74%
- Total if seller covers both: ~5.47%
On a $1.1 million home in Walnut Creek — which is roughly the median range for a single-family home right now — that's approximately $60,000 in total commission if the seller chooses to cover both sides.
On a $1.4 million Danville or Alamo home, you're looking at about $76,000.
These numbers come out of your sale proceeds at closing, the same as they always have. What's different is that the buyer-agent portion is now a negotiated item, not a default offer. Sellers decide whether to cover it, how much to offer, and under what conditions — all in the purchase contract.
Commission is also negotiable at the listing level. Some agents work at lower rates, and flat-fee models exist for sellers who want to manage more of the process themselves. Every situation is different, and the right commission structure depends on your home, your timeline, and the level of service you need. This is one of the things I walk through with every client before we talk about listing strategy.
Don't forget that commissions are just one part of what sellers pay at closing. In Contra Costa County, you're also looking at the documentary transfer tax ($1.10 per $1,000 of sale price, so $990 on a $900K sale), title insurance, escrow fees, and pro-rated property taxes. I broke down the complete seller cost picture in my post on How Much Will You Net Selling Your Walnut Creek Home.
What East Bay Buyers Are Actually Paying in 2026
Most buyers in the East Bay are not writing a check directly to their agent at the closing table. But that doesn't mean buyer-agent compensation has disappeared — it's just moved to a different line item.
Here's how it typically plays out in 2026:
A buyer signs a buyer representation agreement that defines what their agent earns — say, 2.5% of the purchase price. When the buyer makes an offer on a home, they can request a seller concession to cover that amount. If the seller agrees, the concession is included in the purchase contract, and at closing, the seller's proceeds cover the buyer's agent fee. The buyer doesn't write a separate check — but they're paying for it indirectly through the purchase price or negotiation.
If the seller refuses to offer any concession toward the buyer's agent, the buyer has a few options:
- Pay the agent directly out of pocket at closing
- Roll the fee into the purchase price (if the seller agrees and the home appraises)
- Find a different home where the seller is more cooperative
- Negotiate a lower agent commission rate with their own agent
In practice, most East Bay sellers are still covering the buyer's agent because refusing to do so limits your buyer pool. Buyers who can barely qualify for a mortgage at today's rates are not going to have an extra $25,000 sitting around to pay their agent directly. Sellers who want to attract the widest possible pool of qualified buyers typically offer to cover it — even though they don't have to.
One critical thing buyers need to watch: seller concessions for buyer-agent fees count toward the total concession cap on their loan. For conventional loans with less than 10% down, the cap is typically 3% of the purchase price. For FHA loans, it's 6%. On a $900,000 East Bay home, a 3% cap means the seller can cover up to $27,000 in total concessions — including the buyer's agent fee, any closing cost credits, and any repair credits. If multiple concessions are being negotiated, buyers need to be strategic about how they stack them. For the full picture on what buyers are paying at closing, see my breakdown of Buyer Closing Costs in Walnut Creek.
Should Sellers Still Offer to Cover the Buyer's Agent?
This is the question I get most often from sellers who've heard about the NAR settlement and are trying to figure out whether they can save money by declining to offer buyer-agent compensation.
The short answer: most of the time in the East Bay, you should still offer it.
Here's the logic. If you decline to cover the buyer's agent, you're asking buyers to either pay ~$25,000–$35,000 directly out of pocket or negotiate it into the purchase price. Many buyers — especially first-time buyers, buyers with tight finances, or buyers using down payment assistance — simply won't go there. You'll see fewer showings, fewer offers, and more time on market.
The sellers who might benefit from not offering buyer-agent compensation are those with genuinely unique, high-demand properties in low-inventory segments — where buyers have no alternatives and are motivated enough to accept the extra cost. That describes some homes in Walnut Creek and Lamorinda right now. But it doesn't describe most.
The smarter play for most sellers is to negotiate the listing side commission carefully — your own agent's fee — rather than trying to strip away the buyer-agent offer. A good listing agent is where you protect your proceeds; trying to squeeze the buyer's side tends to backfire at a market level.
Your specific situation depends on your home's price point, condition, and location, and the current supply/demand dynamics in your specific neighborhood. That's where a conversation with a local agent — and a look at current comparable sales — makes a real difference.
Frequently Asked Questions
Do sellers have to pay the buyer's agent commission in California in 2026?
No. After the August 2024 NAR settlement, California sellers are no longer required to offer buyer-agent compensation. However, most East Bay sellers still choose to offer it as a seller concession through the purchase contract — because refusing to cover the buyer's agent can shrink the buyer pool significantly.
What is the average real estate commission in California in 2026?
The average total real estate commission in California is approximately 5.47% of the sale price — roughly 2.73% to the listing agent and 2.74% to the buyer's agent. On a $1.1 million Walnut Creek home, that's about $60,000 in total commission if the seller covers both sides. All rates are negotiable.
Can a seller refuse to pay the buyer's agent commission in California?
Yes. Sellers can decline to offer any buyer-agent compensation. If they do, the buyer must pay their agent directly — typically 2–3% of the purchase price on top of what they're already paying for the home. In practice, many buyers will negotiate this into their offer as a concession request, or they may simply pass on homes where sellers aren't offering to help.
How does buyer-agent compensation work after the NAR settlement?
After August 2024, buyer-agent compensation can no longer be advertised on the MLS. Instead, buyers negotiate directly with their agent in a written buyer representation agreement signed before touring homes. Sellers can still offer to cover the buyer's agent — but only through the purchase contract as a seller concession, not through the MLS listing.
Does a seller concession for the buyer's agent count against the concession cap?
Yes. When a seller offers to cover the buyer's agent commission as a concession, it counts toward the total seller concession limit set by the loan type. For conventional loans with less than 10% down, the cap is typically 3% of the purchase price. For FHA loans, the cap is 6%. This matters on higher-priced East Bay homes where concessions can hit the cap quickly.
The NAR settlement changed the mechanics of how commissions work, but it didn't change the underlying reality: selling a home in the East Bay still involves significant transaction costs, and how you structure your commission offering can affect how many buyers show up and how strong your offers are.
If you're trying to figure out what this means for your specific home and situation — whether it's worth adjusting your listing side commission, whether to offer buyer-agent coverage, or simply what you'd actually walk away with after everything — I'm happy to walk you through the numbers. Text or email me directly: (510) 697-3900 or michael@delehantyre.com. We'll talk through the math for your specific home before you sign anything.
About Michael Delehanty — Delehanty Group | DRE #01505346
Michael Delehanty is a Walnut Creek-based real estate agent with Compass, specializing in buying and selling homes across the East Bay — including Walnut Creek, Concord, Pleasant Hill, Danville, Orinda, and the surrounding communities.
Before becoming a real estate agent, Michael spent 15 years running his own contracting firm in the East Bay, working on thousands of homes and major projects across the Bay Area. That hands-on construction background gives his clients a distinct advantage: when Michael walks through a property, he sees what most agents simply can't. From structural details to renovation potential, his experience translates directly into sharper pricing, smarter negotiation, and fewer surprises at the inspection table.
Michael has been a licensed Realtor since 2005, bringing more than 20 years of experience to every transaction. He has successfully guided clients through complex situations including short sales, bank-owned properties, investment transactions, and competitive multiple-offer scenarios. Whether you are a first-time buyer, a move-up seller, or an investor, Michael brings the market knowledge and problem-solving skills to get deals done.
What sets Michael apart is his deep roots in this community. He has lived in Walnut Creek for nearly 30 years and is genuinely invested in the people here — not just the properties. He served four years as Auction Chair and Athletic Boosters President at Las Lomas High School, and has been a member of a local book club for eight years. His two daughters grew up here, attending Las Lomas before going on to the University of Washington and Cal Poly San Luis Obispo. When Michael helps you buy or sell a home in Walnut Creek or the surrounding East Bay communities, he is not just doing a transaction — he is working in the neighborhood where he has built his own life.
michael@delehantyre.com | (510) 697-3900 | michaeldelehanty.com
