What to Pay the Buyer’s Agent

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Commission is Now Negotiable

The way buyer’s agent commissions work has changed, and it’s a shift that firmly benefits you as a seller. If you’ve seen older advice suggesting that commissions are a fixed cost of doing business, it’s time to hit the refresh button.

We now recommend to all our sellers that the commission should stay negotiable. —

You Are in the Driver’s Seat

By keeping the commission negotiable, you are no longer forced to commit to a specific payout before you even see an offer. This puts you in total control.

Following the recent NAR settlement, commission rates were removed from the MLS. This means there is no longer a “pre-determined” fee listed. Instead, the buyer’s agent must now ask for their compensation as part of the offer they submit to you.

Here is why this is a win for you:

  • No Forced Payouts: You aren’t locked into a number. You have the right to negotiate every dollar.
  • Flexibility: You don’t have to negotiate it if the offer is great, but you always have the option if the numbers don’t add up.
  • Transparency: You see exactly what is being requested upfront as part of the contract.

Handling the Offer: 2.5% vs. 3%

While the market is now more open, you will still see patterns in the offers you receive. Typically, a buyer’s Realtor will ask for 2.5%, and sometimes 3%.

Currently, 2.5% remains the most common request and is generally considered the industry standard. This gives you a clear benchmark to use when evaluating your “net” profit on a deal.

Your Options When an Offer Comes In:

When a buyer submits an offer with a commission request, you have the power to decide how to proceed:

  • Accept as is: If the purchase price is high and the 2.5% or 3% request still leaves you with the profit you need, you can accept it.
  • Counter the Commission: If a Realtor asks for 3% but you feel that is too high, you are well within your rights to counter that commission down to 2.5% or even 2%. You aren’t just negotiating the price of your home anymore; you are negotiating the total cost of the transaction. If an agent wants 3% but the offer price isn’t high enough to justify it, you can simply tell them what you are willing to pay.

The Bottom Line

The shift to a negotiable framework is a good thing for sellers. It removes the “hidden” nature of commissions and allows you to treat agent compensation as exactly what it is: a negotiable part of a business transaction.

Don’t feel pressured to agree to a set rate before you’ve seen what a buyer is willing to pay for your home. Stay negotiable, stay in the driver’s seat, and make sure the final numbers work for you.