Who Pays the Buyer's Agent Commission Now?

Short answer: there is no single answer anymore — it is negotiated on every deal. The 2024 National Association of Realtors (NAR) settlement did not create a rule that "buyers now pay their own agent." What it changed is how a buyer's agent's pay is advertised and agreed to. In practice, a buyer's agent can still be paid by the seller (through a concession), by the listing broker (sharing part of their fee), by the buyer directly, or by some combination. Commission was always negotiable and set by contract, not by law — the settlement mostly made that reality more visible and put it in writing up front.

Because this is an area still settling into new norms, treat the specifics below as a framework to discuss with a licensed agent or real-estate attorney in your state, not as legal advice.

What actually changed in 2024

NAR agreed to a nationwide legal settlement resolving antitrust claims about how broker commissions were shared. The business-practice changes took effect in the second half of 2024. Two changes matter most to a buyer trying to figure out who pays.

1. Compensation is no longer advertised on the MLS

Before the change, a listing broker typically posted an "offer of compensation" to buyer brokers directly in the Multiple Listing Service (MLS). A buyer's agent could see, before showing a home, roughly what they would be paid. That blanket offer of compensation on the MLS is now prohibited. Offers of compensation can still exist — they just cannot be communicated through the MLS. This is the change that fueled the headline "sellers no longer pay the buyer's agent." That is an oversimplification: sellers can still contribute, but it is no longer broadcast the same way.

2. Buyers must sign a written agreement before touring

Under the settlement, an agent who is an MLS participant must enter into a written buyer agreement with a buyer before touring a home. That agreement has to state how the agent is paid and how much — and the amount cannot be open-ended or "whatever the seller offers." This is the document that now determines what your agent is owed.

Neither change sets a rate, caps a rate, or forbids sellers from paying. They change where the number is negotiated (in your buyer agreement and in the purchase contract) rather than on a hidden MLS field.

Who pays now — the real options

On any given transaction, a buyer's agent's compensation usually comes from one of these sources. Which one applies is negotiated, not fixed.

Option 1: A seller concession

The seller (or their listing broker) agrees to contribute toward the buyer's agent fee as part of the deal. This is common because it keeps the buyer's out-of-pocket cash low. The key difference now is that this is negotiated within the offer and purchase contract, or requested directly, rather than pulled from an MLS field. From the buyer's side it can look almost identical to the old system — the money effectively comes out of the sale proceeds.

Option 2: The buyer pays the agent directly

The buyer pays their agent per the buyer agreement — sometimes out of pocket, sometimes financed indirectly. Note that lenders limit how buyer-agent fees can be rolled into a mortgage, and rules here are evolving; confirm with your loan officer whether any portion can be financed and how it interacts with your loan program.

Option 3: The listing broker still shares part of its fee

A listing broker may still choose to compensate the buyer's broker — they just cannot advertise it on the MLS. Your agent or their brokerage can ask the listing side directly what, if anything, is offered before you write an offer.

In many deals it is a blend: the seller covers part, and the buyer's agreement specifies who makes up any shortfall.

Why the number in your buyer agreement matters most

Here is the practical trap. Suppose your buyer agreement says your agent earns a set percentage or flat fee. If you buy a home where the seller offers less than that toward your agent, you may owe the difference yourself. If the seller offers more, agreements often cap the agent's total pay at the agreed amount, or specify how any excess is handled.

So the most important "who pays" question is not the industry rule — it is what your own signed agreement says. Before signing, get clear on:

• The exact fee (percentage or flat amount) and whether it is negotiable.
• Whether the agent will seek seller-paid compensation on your behalf.
• What happens if the seller offers less than the agreed fee — do you cover the gap?
• The length of the agreement and whether it is exclusive.
• How the fee is handled if you buy a for-sale-by-owner or new-construction home.

This still varies by state

Real estate is regulated at the state level, and the NAR settlement sits on top of — not in place of — state law. Your state real estate commission sets licensing rules, required disclosures, and in some cases specific forms or agency rules that affect how commission and buyer agreements work locally. A handful of states also have their own rules about buyer-agent rebates, and a minority restrict or prohibit them entirely. Rates and required forms differ from state to state, so a friend's experience two states over may not match yours.

Two reliable places to verify your situation: your state real estate commission's website (for licensing, forms, and rebate rules) and the CFPB's homebuying resources (for how agent fees fit into overall closing costs). Confirm anything state-specific — rebate eligibility, required agreement forms, disclosure timing — with a local licensed professional before you rely on it.

Where rebates fit in

Where state law allows, a buyer's agent can share part of their commission with you as a rebate — applied at closing or paid afterward. Rebates are one way the "who pays" question can work in a buyer's favor: the agent is compensated, and part of that compensation flows back to you. Home Stimulus can match you with an agent who offers a buyer rebate in states where it is permitted, which is worth exploring if you are comparing how different fee structures affect your bottom line. Rebate availability and the tax treatment of a rebate can vary; the IRS has generally treated a buyer rebate as an adjustment to the purchase price rather than taxable income, but confirm your specific situation with a tax professional.

How to protect yourself as a buyer

1. Read the buyer agreement before you sign, not at the closing table. It is now the document that decides what you owe.
2. Negotiate the fee and the term. Both are negotiable. You can ask for a shorter term, a lower rate, or a per-property agreement.
3. Ask your agent to pursue seller-paid compensation where it makes sense, and understand your exposure if the seller offers less.
4. Get any seller contribution into the purchase contract so it is enforceable.
5. Check rebate rules in your state and ask whether a rebate is available to you.
6. Confirm financing limits with your lender if you may need to pay any of the fee yourself.

The bottom line

The settlement did not hand the buyer's-agent bill to buyers. It removed the automatic, MLS-advertised commission split and replaced it with two explicit negotiations: one in your buyer agreement, and one in the purchase contract. Sellers can still contribute, and often do. What is different is that the amount — and who covers any gap — is now spelled out in writing before you tour, which makes it far more important to read and negotiate those documents. Because norms are still forming and rules vary by state, have a licensed local agent or attorney review your specific agreement.