How do commissions work if two people are trading/buying each others homes and both have agents?

Commission is a negotiated item so it comes down to what you negotiate with the other party. Generally, a seller will offer a listing agreement to a real estate agent to sell the home at a certain percentage, and within that agreement it will stipulate what percentage goes to the listing agent from the entire amount and what percentage goes to the buyer's agent. It may not be 50/50 but it often is. If two people are trading properties and are using agents, then it will be whatever is negotiated between one seller and their agent and the other seller and their agent because both are selling their properties. In a trade situation though, it would be more advantageous to use an attorney to conduct the transaction. There could be a 1031 exchange involved with trading properties and deferment of capital gains tax as well and potential reduction of any transfer taxes. If the two sellers are just trading properties and not listing it on the open market then an attorney would be a better choice to represent these sellers but if there was already an agent involved in the listing and marketing of the property when the trade ends up occurring and they are entitled to a commission due to the agreement. made, then it typically would be based on the listing agreement in place for U.S. markets. In some markets, the buyers pay for commission.