How Do Real Estate Agents Get Paid in South Carolina?

By The Living Well Group

Charlsi Kelley and Sarah Kozlik are the dynamic leadership duo behind The Living Well Group Charleston, a top-performing real estate team known for its personalized service and deep commitment to client success.

When I meet new clients, one of the first questions I hear is: “So, how do you get paid?” There’s a lot of confusion around this topic, especially after some recent changes. Today, let’s bust some myths around agent commissions, and I’ll walk you through how agent pay works here in South Carolina, what’s different now, and why it matters when you buy or sell a home.

Agent pay has always been negotiable. Contrary to popular belief, there’s never been a “set” commission rate. No law requires a standard fee, and nothing is fixed in stone.

How do agents get paid? If I’m your listing agent, my payment comes from the seller’s proceeds at closing. This is based on the fee we agreed upon in the listing agreement. That fee covers everything from preparing the listing, pricing strategy, marketing, showings, and sometimes even staging. It’s all part of getting your home sold.

The fee is agreed to up front and in writing. That way, there are no surprises at closing.

What significant commission rule changes happened recently? Until August 17, 2024, sellers would publish in the MLS how much they were willing to pay the buyer’s agent. That’s no longer the case.

Now, before you tour any homes in South Carolina, you’ll be asked to sign a buyer’s representation agreement. This spells out:

● How much your agent will be paid (percentage, flat fee, or hourly).

● Who will cover that cost?

● How the payment will be requested in your offer.

It may sound like extra paperwork, but it’s really about clarity. Everyone knows exactly how the buyer’s agent will be compensated before the first showing.

Who pays the buyer’s agent now? There are a few options:

● Direct payment. Some buyers with extra cash may choose to pay their agent directly, leaving compensation out of the offer. This can sometimes help make their offer more competitive.

● Built into the offer. More commonly, the buyer and agent agree on a fee, and that fee is added to the purchase offer. The seller then pays it at closing out of their proceeds.

In practice, 99.9% of the time here in South Carolina, the seller is still the one covering the agent’s commission. The big difference is that buyers now have a clear agreement with their agent before the home search even begins.

What seems like more paperwork is really a safeguard for buyers and sellers alike. Having the conversation up front eliminates guessing, prevents last-minute surprises, and ensures expectations are set early.

Whether you’re buying or selling, the most important thing is to work with an agent you trust and to make sure the compensation agreement is clear from the very beginning. By openly discussing compensation, you and your agent can focus on what really matters: finding the right home and negotiating the best deal.

If you’re feeling unsure about what to do in this market, don’t hesitate to reach out.

You can call, text, or send us a message at (843) 822-7323 or info@livingwellcharleston.com. That way, you can focus less on paperwork and more on moving into your next home.