Give buyers your fee as a specific number, in writing, before you tour a home. Tell them it’s negotiable, that a seller may agree to pay some or all of it but doesn’t have to, and what happens if a seller offers less. Don’t call your services free, and don’t call any rate standard.
What changed on August 17, 2024
NAR settlement practice changes took effect that day. Offers of compensation to buyer’s agents can no longer appear on the MLS, and agents working with a buyer need a written buyer agreement before touring a home. The agreement must:
- State a specific fee: one that is objectively determinable. “Whatever the seller offers” doesn’t qualify.
- Limit what you receive: you may not receive more than the agreement states.
- Say fees are negotiable: it must state that fees are fully negotiable and not set by law.
The settlement’s rules bind REALTORS® and agents who take part in REALTOR®-affiliated listing services, which covers most agents, and your state may have its own requirement. This is general information, not legal advice. Broker policy varies, so use your broker’s forms and check your wording with your broker or an attorney.
What you can’t say
- “My services are free.” You may not describe your services as free unless you will receive no compensation from anyone.
- “The seller always pays.” No seller has to. Some offer the full fee, some offer part of it and some offer nothing.
- “This is the standard rate.” There is no standard rate. Commissions are negotiable and not set by law.
Wording you can adapt
Put these in your own words and fill in your own numbers. None of them promises what a seller will do, and yours shouldn’t either.
- What the fee is: “My fee for representing you is [your fee]. On a home at [price], that comes to [dollar amount]. It’s written in our agreement, and I can’t be paid more than that.”
- Who pays: “You’re hiring me, so the agreement is between us. A seller may agree to pay some or all of my fee. [Say what you’ve seen in recent local sales.] No seller has to, and I can’t promise that any seller will. We’ll find out what a seller is offering before you write an offer.”
- If the seller offers less: “Then we have choices. You can pay the difference at closing, we can ask the seller to cover it in your offer, or you and I can agree on a lower fee for that home. We’ll decide before you sign an offer, so nothing surprises you at closing.”
- Why it’s negotiable: “No law sets what agents charge, and agents charge different amounts. This is what I charge for the work I’ve described. If you’d like a different arrangement, ask me and we’ll talk about it.”
The buyer presentation builder gives you an outline with talking points, so the fee has its own place in the meeting and isn’t a rushed minute at the end.
When a seller offers less than your fee
Here is the math on a $400,000 home. Your agreement states 2.5%, which is $10,000. The seller offers 2%, which is $8,000. The gap is $2,000. It can be handled in three ways:
- The buyer pays the difference: $2,000 at closing, on top of their other cash to close.
- You ask the seller: the offer asks the seller to pay the full fee, or asks for a concession that covers the gap. The seller can say no.
- You accept less: you and the buyer agree in writing to reduce the fee to what the seller offers.
Which one fits is between you, your buyer and your broker’s policy. Explain all three at the first meeting, before there’s a house on the line.
One caution on the second way. Lenders limit how much a seller can credit toward a buyer’s closing costs, the limits differ by loan type, and a fee the seller pays straight to the buyer’s agent’s brokerage is treated differently from a credit. If the plan is to cover a gap with a concession, have the buyer ask their lender first.
Before you agree to a lower fee, know what it does to your take-home.
Try it: Commission split calculatorSee your take-home from a deal after referral fee, brokerage split, cap, royalty, fees and a tax set-aside.Put it in writing early
Buyers remember numbers they can read. Hand over a one-page summary of your fee at the first meeting, with the dollar amount at their price. Send a blank copy of your agreement before you ask for a signature.
Try it: “How I’m paid” handoutPrint a one-page “How I’m paid” handout with a dollar example.Some buyers aren’t ready to commit for months to an agent they met an hour ago. Offer a shorter agreement, or one that covers a single property, and extend it if you both want to keep working together. Ask your broker which forms your state and office allow.
Keep your fee your own
Buyers may bring up numbers they’ve read. Redfin reported an average buyer’s agent commission of 2.42% in the third quarter of 2025, from the sales it tracks. Treat that as background on what some agents were paid, not as a standard, and say so.
Set your fee on your own, with your broker. Never agree on fees with agents at other firms, and don’t tell a buyer what “everyone charges”. Talk like that can raise antitrust problems.
For where this talk fits in the first meeting, see how to run a buyer consultation and the buyer presentation: what to cover.
Common questions
What does a buyer agreement have to say about my commission?
It must state a specific, objectively determinable fee, you may not receive more than it states, and it must say fees are fully negotiable and not set by law. State rules and broker policy vary, so check with your broker.
What happens if the seller offers less than my buyer agent fee?
The gap can be handled three ways: the buyer pays the difference, you ask the seller to cover it in the offer or through a concession, or you agree to accept less. Explain all three before the buyer writes an offer.
Can I tell buyers the seller pays my commission?
Not as a blanket statement. A seller may agree to pay some or all of your fee, but no seller has to, so don’t promise it.
Updated October 2026. General information for real estate professionals, not legal, tax or financial advice. Prices, platform rules and program terms change, so confirm them at the source.