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Do Buyers Have to Pay Their Own Agent After the NAR Settlement?
After the NAR settlement (Aug 17, 2024): buyers must sign a written representation agreement before touring that specifies their agent's compensation. But buyers do not automatically pay out of pocket: sellers still frequently offer buyer agent compensation as a seller concession in the purchase contract. Fannie/Freddie confirmed seller-paid buyer agent fees do not count against IPC limits. In practice, research shows no meaningful change in avg buyer agent commission amounts post-settlement. Own Luxury Homes® 12-Point Agent Integrity Audit™.
Do Buyers Have to Pay Their Own Agent After the NAR Settlement?
The most common question buyers are asking after the NAR settlement: do I have to write a check to my buyer's agent now? The honest answer is more nuanced than most headlines suggest.
What the Settlement Actually Requires of Buyers
The settlement requires that buyers working with an MLS-affiliated agent sign a written buyer representation agreement before touring any home. The agreement must clearly specify: the agent's compensation amount or how it will be determined, what services the agent will provide, and the duration of the agreement. This is new as a formal requirement. What the agreement does NOT determine is who pays — buyer or seller. The written agreement establishes what compensation the agent expects to receive. The question of who funds that compensation is a separate negotiation that happens in the purchase contract.
Do Sellers Still Pay Buyer's Agent Fees? (Yes, Often)
Before August 2024, sellers routinely offered buyer agent compensation through the MLS — buyers' agents could see exactly what they'd be paid before showing a listing. That field has been removed from the MLS. But the economic incentive for sellers to cover buyer agent fees has not changed. Sellers who offer to cover buyer agent compensation (as a seller concession in the purchase contract) attract a larger, better-financed buyer pool — including buyers who cannot afford to pay their agent out of pocket in addition to a down payment and closing costs. Research tracking closed transactions found no meaningful change in average buyer agent commission amounts in the year following August 2024. The seller concession mechanism has largely continued the prior practice, now just negotiated explicitly in the contract rather than pre-advertised on the MLS. Fannie Mae and Freddie Mac confirmed in 2024 that seller-paid buyer broker compensation, when consistent with local market custom, does not count against Interested Party Contributions (IPC) limits for conventional loans. This removed a potential obstacle to sellers continuing to pay.
When Buyers May Pay Directly
In some markets and some transactions, buyers are now paying their agent directly — either because the seller declined to offer compensation or because the buyer's agent negotiated that structure. If a seller offers no buyer agent concession, a buyer who wants representation has several options: 1. Ask the seller to offer buyer agent compensation as part of their offer terms (this is negotiable). 2. Pay the agent directly from their own funds at closing. 3. Negotiate a reduced commission with their agent. 4. Proceed without representation (not recommended for most buyers). The key point: the buyer representation agreement establishes the agent's compensation expectation. The purchase contract negotiation determines who funds it. These are two separate conversations, and buyers who understand this distinction are in a much stronger position than those who don't.
“When buyers ask me if they have to pay for their agent now, I tell them: you need to understand your representation agreement, and you need to have a clear conversation with your agent about how compensation will be handled in your specific transaction. The most common scenario is still that sellers offer to cover buyer agent fees as a seller concession. But "most common" is not "universal" anymore, and buyers who assume it without asking are the ones who get surprised at closing. Know what your agreement says. Know how it will be funded. Ask those questions before you tour a single home.”
— Ryan Brown, Principal Broker & CEO, Own Luxury Homes®
Do buyers pay real estate agent fees after the NAR settlement?
Not automatically. The NAR settlement (effective August 17, 2024) requires buyers to sign a written representation agreement specifying agent compensation before touring homes. Who funds that compensation — buyer or seller — is negotiated in the purchase contract. Sellers still frequently offer buyer agent compensation as a seller concession, and research shows no meaningful change in average buyer agent commission amounts in the year following the settlement. However, buyers should explicitly discuss compensation structure with their agent before signing any agreement.
Can sellers still pay the buyer's agent after the NAR settlement?
Yes. The settlement prohibits seller-paid buyer agent compensation from being advertised on MLS databases — it does not prohibit sellers from paying. Sellers can offer buyer agent compensation as a seller concession in the purchase contract. Fannie Mae and Freddie Mac confirmed this does not count against Interested Party Contribution limits for conventional loans. Many sellers still offer this concession because it attracts more buyers, particularly those who cannot afford to pay agent fees in addition to their down payment and closing costs.
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"The introduction Own Luxury Homes® makes is to a specialist with documented closing history in your specific market — not the county, not the metro, the submarket you're actually selling or buying in. That's the standard we verify before your name goes anywhere."
— Ryan Brown, Principal Broker & CEO, Own Luxury Homes® (FL License BK3626873)