Who Pays the Buyer's Agent Commission After the NAR Settlement?

In 2024, the real estate industry changed. Sellers are no longer required—or permitted—to advertise buyer agent commissions in the MLS. Here's what it means for FSBO and flat fee MLS sellers moving forward.

🔍 What Changed After the NAR Commission Settlement?

  • No more commission display in the MLS: Sellers and listing brokers can no longer include compensation offers to buyer’s agents in the MLS listing, even in agent-only fields.
  • Buyer agent agreements required: Buyers must sign a written agreement with their agent before touring homes. These agreements disclose how the agent will be paid.
  • Off-MLS compensation still allowed: Sellers may still offer a buyer agent commission—but any offer must be communicated outside of the MLS (e.g., phone, email, showing instructions).

💡 What This Means for FSBO and Flat Fee Sellers

  • You’re in control: Sellers can now choose whether or not to offer compensation to buyer agents. This was previously baked into nearly every MLS listing.
  • More transparency for buyers: Buyers now know upfront how their agent will be paid—and must agree to that arrangement in writing.
  • Clear boundaries on MLS usage: Sellers cannot use the MLS (including public remarks) to disclose, suggest, or imply whether a commission is offered to buyer agents.

Important: You are no longer permitted to advertise buyer agent commission — including stating that no commission is offered — in the MLS, including public remarks. If you choose not to offer compensation, that information should be communicated off-MLS (e.g., directly to buyer agents via email or phone), in accordance with MLS policy.

⚖️ Common Questions

  • Do I have to pay a buyer’s agent?
    No. You're not obligated to offer commission. But keep in mind that many buyers still work with agents, and compensation may help drive interest.
  • Can a buyer pay their agent directly?
    Yes. The buyer and their agent must agree in writing on how compensation will be handled—whether paid out of pocket or through concessions.
  • Can I offer a commission outside of the MLS?
    Yes. You can still offer compensation through other channels (email, ShowingTime instructions, etc.)—just not in the MLS.
  • Can I mention commissions in my listing description?
    No. MLSs prohibit using the remarks section to mention commissions in any form. Doing so risks removal or penalties.