Key insights
- Sellers have the option to not pay a buyer’s agent, and commission rates are still negotiable post-2024 NAR settlement
- MLS listings are no longer allowed to display buyer agent commission offers, requiring compensation negotiations to take place off the MLS
- Not offering a buy-side commission could reduce seller costs but may impact buyer interest from those unwilling to pay their agent out of pocket
- Sellers can still attract buyers by offering concessions or leaving compensation open-ended for buyers to propose agent fee structures within their offer
The real estate landscape is evolving, and the question of whether a seller can decline to pay a buyer’s agent is gaining prominence as commission regulations change. With the 2024 NAR settlement reshaping fee negotiations between buyers and agents, sellers in 2025 and 2026 are reevaluating the necessity of offering a buy-side commission in their local markets.
Recent data indicates a noticeable shift in seller practices. According to Redfin’s analysis, the percentage of sellers providing a buyer agent commission has decreased compared to early 2024. Nevertheless, most listings still include some form of compensation to remain competitive. As the market adapts, sellers have more leeway but must navigate new decisions regarding the impact of these changes on their sales.
For sellers preparing to list their homes in 2025 or 2026, understanding their options, evolving rules, and the potential influence of refusing to pay a buyer’s agent on buyer interest, offer activity, and final sale price is crucial.
Who covers the agent fees?
Traditionally, sellers have funded both buyer and seller agent fees from the sale proceeds. However, starting August 17, 2024, buyers must agree to their agent’s fee in writing before property tours. Buyers can still request that sellers cover the buyer’s agent fee during the offer stage.
This change introduces variability in the amount sellers may need to pay a buyer’s agent, as negotiations for these fees become a part of the offer process. Redfin anticipates some sellers will continue to cover buyer agent commission fees in many transactions, albeit increasingly through negotiation within the offer.
Can sellers opt out of paying the buyer’s agent?
Yes, sellers can choose whether to offer compensation to a buyer’s agent. This flexibility existed even before the 2024 changes. What’s different now is how these fees are communicated and negotiated.
As of August 17, 2024, the NAR settlement prohibits listing agents from displaying or publishing compensation offers to buyer’s agents on the MLS. Sellers must now discuss any compensation offers, if they choose to provide any, outside the MLS, either with their listing agent or the buyer and their agent.
With buyer agent compensation no longer visible in MLS searches, the elimination of this information addresses the issue of steering. This change aims to reduce conflicts and promote transparency in the home search process by removing compensation as a factor in agent decisions.