After the NAR settlement, buyer agent compensation is no longer automatically offered through the MLS. Buyers must negotiate compensation with their agent upfront, and sellers can choose whether to contribute to the buyer agent's fee as part of purchase negotiations.
A buyer agrees to pay their agent 2.5% commission. When making an offer, they request the seller contribute 2% toward buyer agent fees. The seller agrees, so the buyer only pays the remaining 0.5% difference.
Know ALL the ways buyer agents can be compensated: flat fee, percentage, hourly rate, or combination. Understand that sellers CAN still pay buyer agent fees — they just can't offer it through MLS.
Related Terms
Related Concepts
The fiduciary obligations a buyer's agent owes to their client, including loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care.
A form that explains to the buyer the types of agency relationships available and the duties associated with each, required to be provided before substantive discussions begin.
The practice of a listing broker sharing commission with a buyer's broker, historically offered through the MLS but now prohibited from MLS display under the 2024 NAR settlement.
An initial meeting between a buyer and agent to discuss the buyer's needs, explain agency relationships, review representation agreements, and establish expectations for the home-buying process.
The duty of a buyer's agent to act solely in the buyer's best interest, avoiding any conflicts of interest and putting the buyer's needs above the agent's own financial interests.
Frequently Asked Questions
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