If you are planning to buy or sell a home, you might be wondering: What is going on with realtor commissions? Are sellers still covering commission fees, or has the process completely changed?

Following significant national real estate updates, the way real estate agents represent buyers and negotiate commissions has shifted. Here is a breakdown of what has changed, how buyer agency agreements work, and who ultimately pays the buyer’s agent.

What Changed with Realtor Commissions?

In August 2024, a national settlement introduced two major rules that changed the home-buying process:

1. Mandatory Written Agreements Before Touring: Before an agent can tour a home with a prospective buyer, both parties must sign a written contract known as the Exclusive Buyer’s Agency Agreement.
   
2. No Commission Offers on the MLS: Sellers are no longer allowed to advertise what they will pay a buyer’s agent on the Multiple Listing Service (MLS).
   

While seller-paid commissions are no longer publicly listed on the MLS, those conversations still happen directly between agents during negotiations.

Who Pays the Buyer’s Agent Fee?

The new rules do not mean that buyers are automatically forced to pay commission fees out of pocket. In practice, sellers are still frequently covering the buyer’s agent costs. Instead of seeing the commission posted online, the fee is negotiated directly as part of the purchase offer.

When submitting an offer on a home, commission payment usually plays out in one of three ways:

• The seller pays the full fee: The request is written into the offer as a seller concession.
  
• The seller pays a portion: If the seller agrees to cover only part of the agreed-upon fee, the buyer covers the remaining difference.
  
• The buyer pays the fee: If the seller refuses to contribute, the buyer pays their agent directly according to their written agreement.
  

Before writing an offer, buyers sit down with their agent to discuss their preferred strategy and put the plan in writing.

What is an Exclusive Buyer’s Agency Agreement?

The Exclusive Buyer’s Agency Agreement is a formal contract designed to protect both the buyer and the agent by setting clear expectations upfront.

The agreement clearly outlines four main areas:

• Duration: How long the buyer and agent will work together.
  
• Duties: The specific legal and fiduciary responsibilities the agent owes to the buyer.
  
• Compensation: How the agent will be paid, set as a fixed dollar amount or a percentage.
  
• Discrepancies: What happens if a seller offers less than the agreed-upon amount.
  

Key Facts About Buyer Agreements:

• Fees are negotiable: Commission rates are not set by law and are fully negotiable between the buyer and the agent.
  
• Caps on agent compensation: An agent cannot collect more than the amount agreed upon in the signed contract, even if a seller offers a higher amount.
  
• Legal representation: The agreement ensures the agent is legally bound to represent the buyer’s best interests throughout every step of the transaction.
  

The Bottom Line for Home Buyers

Sellers often still pay the buyer’s agent commission, but the process is now fully transparent and negotiated upfront in writing. This extra clarity gives buyers peace of mind, ensuring they know exactly where they stand before touring homes or making offers.

If you are thinking about buying a home and want to review a buyer representation agreement line by line before making a commitment, reach out to our team at The May Group at RE/MAX of Grand Rapids for expert guidance through the process.