How agent commissions work now, after the NAR settlement
What changed on August 17, 2024, what stayed the same, and what it means for you as a seller.
No obligation. No pressure. Takes about 2 minutes.
The short answer
Since August 17, 2024, offers to pay a buyer's agent can no longer be posted on the MLS, and agents working with buyers need a written agreement before touring a home. Commissions were never set by law and remain fully negotiable. As a seller you can still choose to offer compensation to a buyer's agent or offer buyer concessions, but your agent must disclose any such payment to you in writing in advance and get your approval.
Step by step
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1
Your listing commission is negotiable
NAR says compensation for your agent remains fully negotiable and is not set by law. Ask each agent you interview what they charge and what's included.
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2
Offering to pay the buyer's agent is your choice
You can still offer compensation to buyer brokers, for example to make the listing more attractive. Your agent must tell you in writing, in advance, the amount or rate of any payment to a buyer's broker and get your approval.
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3
It won't be on the MLS
Offers of compensation to buyer brokers can't be communicated on the MLS. Your agent can share them off the MLS, for example through flyers, websites or social media, and you can still offer buyer concessions, such as help with closing costs, on the MLS.
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4
Buyers now sign agreements too
Agents working with buyers must have a written agreement before touring a home, in person or virtually. The agreement has to state the agent's pay as a set amount, not an open-ended range, and the agent can't take more than that from any source.
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5
Put it all in your net number
Your agent's commission, anything you offer a buyer's agent, and any concessions all come out of your proceeds. Add them up before you compare offers.
Sources: National Association of REALTORS, Home Sellers: Here's What the NAR Settlement Means for You · National Association of REALTORS, NAR Settlement FAQs · National Association of REALTORS, Consumer Guide to Written Buyer Agreements
This is general information, not legal advice. We're a cash home buyer, not a real estate brokerage, and we don't endorse any particular agent. Ask the agent you're considering how these rules apply to your listing.
Cash offer vs listing
Example: a $250,000 home
| Offer | $205,000 |
|---|---|
| Repairs | $0 |
| Commissions | $0 |
| Closing costs | $0 |
| You walk away with | $205,000 |
| In 7 to 14 days | |
| Sale price | $250,000 |
|---|---|
| Repairs | about $8,000 |
| Commissions | about $13,800 |
| Closing and holding | about $6,000 |
| You walk away with | about $222,200 |
| In 60 to 90 days | |
Example only. Your numbers depend on your home and market.
If you're weighing a listing against a cash sale, commissions and concessions are part of the listing number, and we show that next to the cash offer, which has no fees or commissions.
Frequently asked questions
Do sellers still pay the buyer's agent?
Only if you choose to. You can offer compensation to a buyer's agent or offer buyer concessions, but it isn't required, and your agent must disclose any payment to a buyer's broker to you in writing and get your approval first.
Is the commission percentage set by law?
No. NAR says compensation is not set by law and is fully negotiable between you and your agent.
When did the rules change?
The practice changes took effect August 17, 2024. MLSs that opted in to the settlement had until September 16, 2024, to put them in place.
Who are you?
We are real estate investors based in Baltimore, helping homeowners since 2016. We buy houses directly for cash. We are not a licensed real estate brokerage and do not list homes ourselves; if listing could get you more, we show you the math so you can choose.