Who Pays the Buyer Agent Now?
Since the NAR settlement, a lot of people are confused about real estate commissions.
Buyers are asking:
“Do I have to pay my own agent now?”
Sellers are asking:
“Why would I pay the buyer agent if the buyer hired them?”
Both questions make sense.
The simple answer is this:
Buyer agent compensation is now something that needs to be talked about clearly, put in writing, and negotiated as part of the offer.
It is not automatic.
It is not set by law.
And it is not the same in every transaction.
What Changed?
Since August 17, 2024, buyers working with an agent must sign a written agreement before touring homes.
That agreement explains what the buyer agent will do and how that agent will be paid.
Also, buyer agent compensation is no longer shown in the MLS.
But that does not mean a seller cannot help pay it.
A seller still may agree to help pay buyer agent compensation as part of the offer. It just has to be handled clearly and correctly.
So the real question is not:
“Who has to pay?”
The better question is:
“What makes the most sense for this buyer, this seller, and this deal?”
Why Would a Buyer Pay Their Own Agent?
A buyer may pay their own agent because that agent is representing the buyer.
A good buyer agent does much more than open doors.
A buyer agent helps the buyer:
Understand the market.
Compare homes and neighborhoods.
Look at recent sales.
Decide what price to offer.
Write a strong offer.
Negotiate terms.
Handle inspections.
Ask for repairs when needed.
Stay on track with the lender and escrow.
Avoid costly mistakes.
That is real work, and it has real value.
A buyer may choose to pay their own agent when the seller is not offering help, or when the buyer wants to make their offer look stronger by asking the seller for fewer costs.
For example, in a competitive situation, a buyer might say:
“I will cover my own agent compensation so the seller has fewer expenses.”
That could make the offer more attractive.
But here is the problem.
Many buyers do not have extra cash sitting around.
They may already need money for the down payment, closing costs, inspections, appraisal, moving expenses, repairs, and furniture.
So even if a buyer can qualify for the loan, they may not have enough extra cash to pay their agent out of pocket.
That is especially true for first-time buyers, FHA buyers, VA buyers, retirees, and buyers who are trying to protect their savings after the move.
That is why this issue matters so much.
Why Would a Seller Help Pay the Buyer Agent?
A seller may choose to help pay buyer agent compensation because it can make the home easier for more buyers to buy.
The seller is not required to do it.
But it may be smart.
A seller may want to help when:
They want more buyers to consider the home.
Buyers in that price range may be short on cash.
The home is competing with similar homes.
Other sellers are offering concessions.
The market is slower.
The seller wants the strongest chance of getting to closing.
The most important thing for a seller is usually the final net amount.
In other words:
“How much money do I walk away with?”
Here is a simple example.
One buyer offers $500,000 and does not ask the seller to help with buyer agent compensation.
Another buyer offers $515,000 and asks the seller to contribute $12,000 toward buyer agent compensation.
The second offer may still be better for the seller because the seller may net more money.
That is why sellers should not automatically say:
“I will not pay the buyer agent.”
A smarter question is:
“Which offer gives me the best net, the best terms, and the best chance of closing?”
When Is It Critical for the Seller to Help?
Seller help may be very important when the buyer does not have a lot of extra cash.
It may also be important when the home is likely to attract first-time buyers, FHA buyers, VA buyers, downsizing buyers, or relocating buyers.
It can also matter when the market is slower and buyers have more choices.
If similar homes are offering help and your home is not, some buyers may skip your home.
They may love the house.
They may qualify for the loan.
But if they do not have enough extra cash to cover their agent, they may choose a different home.
That is why seller assistance can make a big difference.
It can keep more buyers in the game.
When Is It Critical for the Buyer to Understand This?
It is critical before the buyer starts looking at homes.
A buyer should know:
What they are signing.
What their agent will do.
How their agent will be paid.
Whether they can ask the seller to help.
What happens if the seller says no.
How much cash they may need to close.
Whether the lender will allow the way the payment is structured.
This should never be a surprise at the end.
A buyer needs to know the plan before writing an offer.
The Best Answer Is Not Always “Buyer Pays” or “Seller Pays”
The best answer is usually:
“Let’s look at the whole deal.”
For a buyer, that means looking at the price, loan, closing costs, inspections, repairs, and cash needed to close.
For a seller, that means looking at the price, terms, buyer strength, financing, closing date, and final net proceeds.
The commission conversation should not be emotional.
It should be practical.
It should be part of the strategy.
A Simple Way to Think About It
Buyer agent compensation can be handled in different ways.
The buyer may pay it directly.
The seller may agree to pay it.
The seller may offer a concession to help the buyer cover it.
The buyer and seller may negotiate it as part of the offer.
The important thing is that everyone understands the agreement.
It needs to be clear.
It needs to be in writing.
And it needs to be negotiated properly.
Final Thought
The NAR settlement did not take away the need for buyer representation.
It just made the conversation about compensation more direct.
Buyers need to understand how their agent is paid before they start looking at homes.
Sellers need to understand that helping with buyer agent compensation may bring in more buyers and may help create a stronger offer.
The best deal is not always the one that looks cleanest at first glance.
The best deal is the one that works financially, protects the client, and gets to closing.
Martha Viera Parsons
Associate Broker · Realtor
"You're an MVP with me." — Personalized real estate care across Southern Arizona.
📞 (520) 965-3536
📍 Green Valley, AZ
