If you’ve been hearing people ask “who pays realtor commission in South Carolina?”, you’re not alone. This question has been coming up a lot lately because of changes in how real estate commissions are handled.
The short version? Things are a little different than they used to be.
For years, sellers often paid the full commission, which was then split between the listing agent and the buyer’s agent. But because of new transparency rules tied to a major 2023 lawsuit, the way commissions are handled is becoming more clearly defined.
So let’s break down who pays realtor commission in South Carolina now — in plain English.
Why Did This Change?
The shift largely came from a 2023 national lawsuit involving the National Association of Realtors that focused on transparency around real estate commissions.
The concern was that buyers and sellers often didn’t fully understand how commissions worked or who was paying whom and that all parties had a say in the matter.
The shift started after a 2023 lawsuit focused on commission transparency in real estate. One result is that Realtors are no longer allowed to advertise any broker compensation (commission) that a broker or seller may agree to pay to a buyer’s agent. In other words, the amount a seller might offer toward a buyer’s agent can’t be publicly displayed in the MLS anymore. The South Carolina Association of Realtors has taken this a step further to promote complete transparency among everyone involved in the transaction and to prevent any possibility of steering buyers toward homes based on the amount of commission being offerd to their agents by the seller. Because of these changes, the way commissions are discussed and negotiated looks a little different now. Let’s walk through what that means.
In simple terms:
Everyone now needs to be very clear about who is paying which agent.
What This Means for Sellers
Most people have always answered the question “who pays realtor commission in South Carolina?” by saying the seller pays both agents. And for a long time, that looked true on paper.
What was actually happening behind the scenes was a little different.
In most transactions, the seller agreed to pay their listing brokerage a certain percentage when they listed their home. From that amount, the listing brokerage would then share a portion with the brokerage representing the buyer. Since everything came out of the seller’s proceeds at closing, it created the impression that the seller was directly paying everyone’s commission.
With the new listing agreements now being used in South Carolina, that structure has changed.
A listing brokerage can no longer share its commission with a buyer’s brokerage. Because of that, it’s now very clear in the agreement that sellers are only agreeing to pay their listing brokerage.
If a buyer wants the seller to cover their agent’s commission, that compensation has to be requested and negotiated separately as part of the purchase offer.
Real-life example
Let’s say you’re selling your home for $300,000.
Your listing agreement might say you will pay your listing agent 4% commission.
If a buyer wants their agent’s commission paid by you, the seller, their agent will include a request for an additional negotiated commission in the offer.
You then have options:
• Accept it
• Reject it
• Counter it
Just like you would with price, repairs, or closing costs.
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What This Means for Buyers
Now let’s talk about the other side of the question:
Who pays realtor commission in South Carolina when you’re buying a home?
The biggest takeaway for buyers is this:
Don’t automatically assume the seller will pay your agent’s commission.
Your agent will have a buyer representation agreement explaining how they are compensated.
Sometimes the seller may agree to cover it.
Sometimes they may not.
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Real-life example
Imagine you’re buying a home for $250,000.
Your agent’s compensation agreement might be 2.5%.
If the seller agrees to pay it as part of your offer — great.
But if the seller declines, you may need to cover some or all of that compensation yourself.
That’s why buyers should plan ahead.
My Take on What’s Coming
Here’s my honest take after watching these changes roll out.
I think this may be the beginning of a bigger transition in how real estate works. Over time, we may see more sellers move away from automatically paying buyer’s agent commissions. Some still will. Some won’t. It’s simply becoming another part of the negotiation.
For buyers, this just means a little more planning on the front end. When you’re getting ready to buy a home, you already plan for things like your down payment, closing costs, and inspections. Now it may also mean setting aside funds in case you need to help cover your agent’s compensation if the seller chooses not to.
And honestly, when you think about it, that’s how most services work in everyday life.
If you hire a CPA to prepare your taxes, you expect to pay them for their time and expertise. If you hire a contractor to remodel your kitchen, you’re paying for their experience, coordination, and the work they do behind the scenes to make sure everything turns out right.
Real estate works the same way. A good buyer’s agent is doing a lot behind the scenes — negotiating on your behalf, coordinating inspections, navigating contracts, and helping protect you from costly mistakes. That work has real value.
So moving forward, the key isn’t panic — it’s simply clarity and planning.
Final Thoughts
Whether you’re buying or selling, understanding these changes can make a huge difference in how you plan.
And if you like practical real estate tips explained in plain English…
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