The National Association of Realtors (NAR) settlement that took effect in August 2024 fundamentally changed how buyer agent compensation works in real estate transactions.
What Changed
Previously, seller's agents would list a buyer agent commission in the MLS, typically 2.5-3%. Now, buyer agent compensation can no longer be advertised on the MLS. Buyers must negotiate their agent's compensation directly.
Impact on Sellers
This shift gives sellers more control over their costs. You can still choose to offer buyer agent compensation, but it's no longer assumed or required. This is particularly advantageous for flat-fee sellers who are already saving on the listing side.
Our Recommendation
We advise our clients to consider offering competitive buyer agent compensation (typically 2-2.5%) to attract the widest pool of buyers, but the decision is entirely yours.