- 📉 The 2024 NAR settlement ended required MLS commission disclosures. This changes how real estate agents get paid.
- 🛑 Sellers no longer have to pay a buyer’s agent. This breaks old rules that were in place for decades.
- 💼 Buyers and their agents now talk about commission fees directly, not through the MLS.
- 💰 Sellers using 1% listing models can greatly cut fees and still compete well.
- 🏡 Buyers might ask for sellers to pay commissions using credits at closing. This moves who pays the cost.
Homeowners have usually paid both their listing agent and the buyer’s agent. This setup was common for decades. But after 2024, this practice has started to change. A big settlement from the National Association of Realtors (NAR) means sellers can now more easily choose not to pay extra agent fees. This brings up questions about how agents are paid, if buyers can afford homes, and how sellers can keep more of their sale money.
Can a Seller Refuse to Pay a Buyer’s Agent Commission? (Yes, Here’s How)
Yes, a seller can legally refuse to pay a buyer’s agent commission. And this choice is now easier to make and talk about than ever. No federal or state law requires a seller to pay the buyer’s agent fee. The U.S. Department of Justice (2023) says real estate commissions in the U.S. have always been open to negotiation.
Until recently, buyer agent fees were often included with the listing agent’s pay. These were shown in the MLS (Multiple Listing Service) to tell agents how much they would earn for a buyer. Sellers often did not know they could push back or negotiate. They felt forced into the “standard” 5–6% total commission fee.
But the 2024 NAR settlement made big changes. Now:
- MLS listings are no longer allowed to show buyer agent pay.
- Buyers and their agents must talk directly about agent pay. This means the buyer pays, or the agent finds another way.
- And then sellers can choose if they want to offer this pay at all.
This update starts new talks about what agents do, what people expect, and who pays for what during a home sale.
📘 Quick Tip: Starting July 2024, sellers will not see commission amounts for buyer agents in the MLS system. This moves all payment talks off the platform and into offer negotiations.
Understanding How Commissions Worked (Before 2024 vs After 2024)
To see how much things have changed, it helps to know what was different before and after 2024.
| Component | Before 2024 | After 2024 |
|---|---|---|
| Buyer Agent Pay | Seller offered 2.5–3% through MLS split | Buyer talks directly with agent |
| MLS Listings | Showed buyer agent pay info | Commission offers gone; talks happen off-MLS |
| Seller Commission Responsibility | Seller usually paid both agents’ fees | Now negotiable; no longer a set requirement |
| Usual Total Commission | 5–6% split between listing and buyer agent | Changes a lot; how it’s paid can be discussed |
Under the old system, most sellers offered a combined commission of 5–6%. This split evenly between the listing and buyer’s agents. That amount could grow a lot with higher home prices. Now, how commissions are paid is fully negotiable:
- A seller can offer less than 6%.
- A buyer can pay their agent directly.
- And then a mix of both, like seller credits at closing, is possible.
Why Sellers Have Usually Paid Buyer Agent Fees
Here are some reasons why sellers have historically paid for both sides of a home sale:
- To Encourage Buyer Agents
Offering commission helped make sure buyer agents would focus on showing a property. This was especially true when there were many homes to pick from. Without a sure payment, agents were less likely to tell their clients to look at or offer on a home. - Included in Listing Agreements
Most older full-service real estate companies handled both commissions together. Sellers saw one percentage (like 6%), without a clear breakdown. Or they just assumed both agents had to be paid. - It Was Standard Practice
For decades, sharing commissions this way was simply what everyone did. Both agents expected their part of the commission. And sellers seldom asked why they were paying for another person’s agent.
These reasons made sense for a long time. But now, people are looking closely at them because of high home costs and new ways to sell homes.
Why Sellers Might Refuse to Pay a Buyer Agent Fee in 2025
Today, sellers have several reasons related to their plans or money for not wanting to pay a buyer agent:
- High Home Prices Mean Bigger Commissions
Home values have gone up a lot in the last ten years. So, commission payments have also grown a lot. At 6%, selling a $600,000 home means $36,000 in commissions. This often seems like too much, especially when technology helps agents do more with less work. - Listing Platforms Work Well
Sellers can use good marketing platforms or flat-fee MLS listings. This lets them show their homes to thousands of buyers without needing pricey extra services. Because of this, they might wonder if paying a buyer agent is really needed. - Buyers Pay for Their Own Agent
In most jobs—like with lawyers, money advisors, or doctors—the client pays their own expert. Sellers might say that buyers who choose to hire their own agent should also pay that cost. - Hot Local Markets (Few Homes for Sale)
In places where few homes are for sale and homes sell fast, sellers have more power. If many buyers are making offers, sellers might not see a need to pay extra to get people to look at their home.
But it is still important to think about how the local market acts. Not offering commission might make your home less attractive to agents or buyers. This is especially true in balanced markets or those where buyers have more power.
What Happens If Sellers Don’t Offer Buyer Agent Pay?
Sellers might be surprised. If they refuse to pay a buyer agent at first, they could still face costs in other ways during talks.
Here’s what happens:
- Buyers Pay Agents Directly
Buyer agents often ask their clients to sign agreements. These state how and how much they will get paid, even if the seller offers nothing. This means the buyer takes on the cost. - Offers Include Commissions
Buyers might ask the seller to pay their agent’s fee through closing cost credits. This helps buyers cover their own costs. It does not change the total sale price, but it cuts the money a seller gets unless they agree to something else.📄 Example clause:
“Buyer asks seller to credit $7,500 toward buyer-closing costs. This includes agent pay.” - Offers Can Change
Buyers might offer less if they are paying for their own agent. Or they might just skip your home and look at others where buyer agent fees are offered. This means fewer people looking at your home.
Other Ways Sellers Can Help Buyer Agents Without High Commission Costs
You might not want to offer a usual 2.5–3% payment for a buyer agent. But you can still meet buyer needs without spending too much:
- ✅ Flat Dollar Closing Credits
Offer a set amount, like $5,000. Buyers can use this money however they choose. This could go toward agent fees, closing costs, or paying to lower their interest rate. - ✅ Bonuses for Good Results
Offer rewards only for quick closings, offers above the asking price, or specific timeframes. - ✅ Use Flat-Fee MLS Services with Options
This lets many people see your property. At the same time, talks about commission stay separate. - ✅ Focus on Other Good Things
Great marketing, virtual staging, pre-inspections, and easy showing schedules all help bring in buyers and agents. This happens without making payments bigger.
These ways can make your property attractive. And they still keep your commission costs under control.
How to Lower Your Listing Fees to Get More Options
Here is another good way: Cut your own agent’s fee. And then use that money saved to help with smart plans for commissions.
Here is what that can look like:
| Home Price | Standard 3% Listing Fee | 1% Listing Commission | Seller Savings |
|---|---|---|---|
| $400,000 | $12,000 | $4,000 | $8,000 |
| $600,000 | $18,000 | $6,000 | $12,000 |
| $800,000 | $24,000 | $8,000 | $16,000 |
With these savings, you can:
- Give closing cost credits to buyer agents if you need to.
- Offer home warranty plans or new appliance rewards instead.
- And then change things as needed based on how many offers you get or market conditions.
The good thing about this is you are not stuck with one plan. You can decide for each buyer. This helps you keep more of your home’s value.
Buyer Agent Rebates: Can Buyers Still Save Money?
A main result of buyers now paying for their own agent is that some real estate companies offer buyer agent commission rebates. This is a cash refund for part of the agent’s fee.
Here is how they work:
- A buyer finishes buying a home with a company that offers this.
- The agent gets their commission. This is often paid through talks or as part of the sale contract.
- Then, a part of that money—often up to 1% of the home price—is given back to the buyer.
Buyers can use this money for closing costs, home improvements, moving expenses, or just as more savings. These rebates are not legal in all states, like Alaska and Oregon. But they are a good reason to use an agent in places where they are allowed.
If you are a buyer dealing with the new market, it is good to ask: Can I get some of this money back?
FSBO and Discount Listing Models: What to Expect from Buyer Agents
If you are thinking about selling your home yourself (FSBO) or using a 1% real estate company, how do buyer agent fees work?
- Being Seen is Still Important
Even FSBO sellers can list on the MLS using flat-fee services. This shows they are serious and can reach many buyers. - Be Ready to Talk Prices
You might not offer a buyer agent commission at first. But many agents will come with buyer requests for payment. This could be in the offer or through other deals. - Think About Professional Help
Companies that offer 1% full-service listings give you help, negotiation advice, and MLS access. You get this without losing out on savings.
Simply put: You do not have to choose between doing everything yourself and doing everything the old way. There is a middle path that gets your home seen by the most people and saves you the most money.
2025 Seller Plan: How to Work with the New Commission Rules
Here is your plan:
- 💡 Decide clearly about buyer agent pay: Will you offer it? How much? What are the rules?
- 💡 Pick a listing partner that saves you money: Cut down on standard listing agent fees with 1% models or other flat-fee options.
- 💡 Be ready to change: Use buyer credits or bonuses only when the situation (or offer strength) needs it.
- 💡 Watch your market: How buyers act will be different in different places. Be ready to change as things shift.
- 💡 Talk often and early: Tell agents and buyers what you plan to do. This stops confusion and helps talks go smoothly.
The seller commission responsibility in 2025 is flexible, not set. And that flexibility helps sellers who plan ahead.
Final Thoughts: Commission Options Can Help You Compete
The changes in real estate commission practices should have happened sooner. Sellers will gain the most when they understand all the new options. There is no rule that says you must pay a buyer agent. There are just smart ways to compete well if you do not.
With clear prices, new tools, and service plans that can change, you can sell your home on your terms. You can still get eager buyers too.
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✅ Ready to list smart for 1%? Or wonder what kind of buyer rebate you are eligible for? Start your personal savings plan today.
Talk to an expert now — Your free, no-pressure chat is just one click away.
Citations
- U.S. Department of Justice. (2023). The Competitive Impact of Real Estate Broker Practices.
- National Association of Realtors. (2024). Settlement Overview and MLS Policy Changes. https://www.nar.realtor/
