Who Pays the Buyer’s Agent Commission?
The August 2024 National Association of REALTORS® (NAR) settlement changed more than just paperwork—it changed the way buyers and sellers are negotiating real estate commissions. And it’s creating one of the biggest points of confusion in today’s housing market:
Who actually pays the buyer’s agent commission now?
Why There’s Confusion
Before August 2024, it was standard practice for sellers to cover both their own agent’s commission and the buyer’s agent’s commission. That system kept buyers from needing to bring extra cash to the table, and it made it easy for both sides to move forward.
But the settlement removed blanket offers of compensation from the MLS. That means sellers are no longer automatically expected—or required—to pay the buyer’s agent.
Here’s where the confusion comes in:
- 69% of buyers still expect sellers to pay their agent’s commission.
- Only 29% of sellers actually plan to do so.
This gap has led to tense negotiations, stalled offers, and even deals falling apart when expectations don’t align.
What Sellers Need to Know
As a seller, you are no longer obligated to cover the buyer’s agent commission—but it may still be in your best interest, depending on the situation.
“I always advise my sellers to think strategically,” says Meredith Fogle, Montgomery County Real Estate Expert and Owner of The List Realty in Maryland. “Whether to agree to coverage of buyer agent compensation depends on multiple factors, including the state of the market and and buyer demand, and should be evaluated along with other offer terms. Ultimately, covering compensation impacts the seller's bottom line and one of the positive effects we've seen post-NAR settlement is a higher net to the sellers we represent and the need for buyers' agents to enhance their skill level and the services they offer. While you don’t have to pay the buyer’s agent commission anymore, it's important to enlist the guidance of an experienced and knowledgable real estate expert to help you make a sound decision.”
What Buyers Need to Know
If you’re buying, you’ll need to discuss compensation with your agent at the start. In many cases, that may mean paying your agent directly. However, some sellers may still offer to cover your agent’s fee, especially in buyer-favored markets.
Buyers who want to make their offers stronger may also negotiate commission responsibility as part of the purchase contract. Flexibility on both sides will be key moving forward.
How to Navigate This New Normal
- For sellers: Decide early whether you’ll offer to pay a buyer’s agent commission, and market your home accordingly.
- For buyers: Have a clear conversation with your agent about how their commission will be handled before you start house hunting.
- For both: Expect commission discussions to be a standard part of the negotiation process, not just a behind-the-scenes detail.
Bottom Line
The NAR settlement has shifted commission responsibility from a default seller-paid model to a negotiable item. That means buyers and sellers alike need to be clear, upfront, and strategic about how commissions will be handled.
As Meredith Fogle puts it:
“In today’s market, flexibility wins. The best deals come when both sides understand the new rules, have expert representation, and work together to find a fair solution.”
