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Who pays the realtor? Commissions after the 2024 rules
The August 2024 practice changes were the biggest shift in decades. Most buyers and sellers still haven't had them explained. Here's the honest version.
What actually changed
Two things, both from the National Association of REALTORS® settlement that took effect August 17, 2024:
- Offers of buyer-agent compensation left the MLS. Listing brokers can no longer advertise the buyer's agent's fee through the MLS. Compensation can still be negotiated off-MLS — sellers can offer it, buyers can ask for it — it just isn't published the old way.
- Buyers sign before they tour. Buyer agents must give buyers a written agreement stating the agent's fee before touring a home with them. The fee is negotiable between you.
Source: National Association of REALTORS®, "Facts for Consumers and Sellers/Buyers" practice-change resources, nar.realtor/the-facts.
Before and after, side by side
| Question | Before Aug 2024 | After Aug 2024 |
|---|---|---|
| Where buyer-agent fees were advertised | On the MLS, set by the listing broker | Off the MLS entirely — negotiated directly between buyer and agent, or buyer and seller |
| Buyer's first step with an agent | Often informal — start touring, sign later | A written agreement stating the agent's fee, before touring a home |
| Who pays the buyer's agent | Customarily the seller, via the MLS offer | Whoever you negotiate: the seller can still offer it, the buyer can pay it, or they can split it |
| Are commissions negotiable? | Yes — but rarely discussed up front | Yes — and now visible, written, and explicit |
What it costs, on average
Commissions were always negotiable; the settlement made the negotiation explicit. Nationally, total commission has averaged roughly 5.5–5.7% in 2025–2026 reporting, and the buyer-agent share has drifted down to about 2.4%–2.8% — Redfin measured 2.42% on average in Q3 2025, Bankrate's 2026 survey put the average near 2.82%. Many sellers still choose to contribute toward the buyer's agent fee because it widens the pool of buyers who can afford to show up.
Sources: Redfin buyer-agent commission data (Q3 2025); Bankrate commission survey (May 2026). Averages vary by market and price band.
What it means for sellers
You no longer see the buyer-agent offer printed next to your listing — you decide it in strategy with your agent. Offering a competitive buyer-agent fee can broaden your buyer pool; offering none can filter for buyers able to pay their own representation. Both are legitimate; it's now a written, deliberate choice rather than a default.
What it means for buyers
Before your first tour, your agent puts their fee in writing — you'll see it plainly. You can negotiate it, ask the seller to cover it in your offer, or choose an agent whose fee matches the value they provide. The important part: no surprise fees at the closing table.
How Khan Realtor handles it
Everything in writing before you commit, every number explained, nothing buried. If we ever can't justify our fee better than the value we bring, we haven't earned it — that's the standard we hold ourselves to.
Questions about your situation?
Every transaction is different. Ask us directly — general questions are free and genuinely welcome.