Who pays the buyer's agent commission now that buyer commissions changed?

This is one of the most common questions I get, because the rules genuinely changed. Since August 17, 2024, the National Association of Realtors settlement requires that buyer-agent compensation no longer be advertised in the multiple listing service. Buyers now sign a written representation agreement before touring homes, which spells out how their agent gets paid and how much. The result is that commission is now a negotiated part of the transaction, not a number printed on a listing.

What the Settlement Changed

Before the change, the listing agent typically offered a buyer-broker commission in the MLS, and the seller effectively paid both agents out of the proceeds. After the change, that offer is gone from the listing. The buyer and their agent negotiate a fee in the representation agreement, and then the question becomes who pays it at the table: the seller may agree to pay it as a concession, or the buyer may pay it directly. In Naples, sellers commonly still contribute to buyer-agent compensation, but it is now explicit and negotiable.

What It Means for Sellers

For a seller, the practical questions are how much to offer a buyer's agent to keep your home competitive, and how that is written into the listing agreement and the purchase contract. A home where the seller declines to pay any buyer-agent compensation can put the buyer's agent in a position where they must ask the buyer to pay, and that can affect how enthusiastically the home is shown. We handle that openly in the listing strategy, not as an afterthought.

What It Means for Buyers

For a buyer, the new requirement to sign a representation agreement before touring is actually protection: it puts the fee, the services, and the loyalty in writing before you invest weeks in the process. The fee is a real cost to plan for, whether it comes from your side, the seller's side, or a combination, and it belongs in your budget alongside the down payment and closing costs.

Transparency Is the Point

I have always believed the money side of a transaction should be clear. The settlement pushed the industry in that direction. My job is to make sure my sellers and buyers know exactly what is being paid, by whom, and why, before the contract is signed.