Three Ways Buyers Can Pay Their Agent After the NAR Settlement

The real estate industry is navigating significant changes following the NAR lawsuit settlement. One of the biggest shifts: listing agents can no longer advertise buyer-agent compensation in the MLS, and buyers must sign a written representation agreement before touring homes.

That's led to a common question: "Does this mean I have to pay my buyer's agent out of pocket?"

The short answer: not necessarily. Here are the three ways buyer-agent compensation can be structured in this new environment.

1. The Seller Pays (Through an Offer Provision)

Even though compensation can't be advertised on the MLS, nothing prevents a buyer from asking the seller to cover their agent's fee as part of the purchase offer.

For example: A home is listed at $300,000. The buyer writes an offer requesting the seller pay 2.5% to the buyer's brokerage. The seller can accept, counter, or decline—just like any other contract term.

This method keeps the transaction structure similar to what buyers have experienced for decades. The difference now is that it's negotiated case-by-case, not broadcast upfront.

2. The Buyer Pays Directly

In some situations, a buyer may choose to pay their agent's fee directly. This is more common with:

• For-sale-by-owner (FSBO) properties where the seller isn't working with an agent
• New construction, where builder policies vary
• Situations where a buyer wants full control over the negotiation and doesn't want compensation tied to the offer

Direct payment isn't the most common path, but it's always been an option—and it remains one.

3. The Seller Pays (Via Seller Credit at Closing)

Here's a hybrid approach: the buyer pays their agent's fee, but requests a seller credit at closing to offset that cost.

In practice, it looks like this: The buyer agrees to pay their agent 2.5%, then asks the seller for a $7,500 credit toward closing costs (assuming a $300,000 purchase). The credit reimburses the buyer for the commission they paid.

This method can be appealing when the buyer wants to structure the transaction a certain way for financing purposes, or when the seller prefers not to pay the buyer's agent directly.

The Bottom Line: Representation Still Matters

Regardless of who pays, buyers still need professional representation—especially in unfamiliar markets.

Consider the buyer relocating from across the country for a weekend of home tours. They don't know local contractors, inspectors, market norms, or contract nuances. They're negotiating against a seller's agent whose job is to get the highest price with the fewest concessions.

Going unrepresented in that scenario isn't a cost savings—it's a risk.

At Foraker Realty, we walk buyers through these options during an upfront consultation, before they ever tour a home. The goal is clarity: you'll know how your agent gets paid, what services you're receiving, and what your options are if a seller isn't offering compensation.

The mechanics are changing. The value of having an advocate in your corner is not.

FAQ

Do I have to sign a buyer agency agreement before I tour homes?
Yes. As of the NAR settlement implementation, agents must have a signed buyer representation agreement in place before showing properties. This ensures both parties understand the terms of the relationship upfront.

What if I don't want a long-term contract with an agent I just met?
You don't have to. Agreements can be property-specific (covering just one showing) or non-exclusive (allowing you to work with multiple agents). If you're responding to an online listing and want to see one home, a single-property agreement keeps things simple.

Will sellers still offer to pay buyer-agent commissions?
Many will—it's still a competitive advantage in marketing a property. The difference is that it won't be advertised in the MLS. Instead, it will be negotiated as part of the offer, or disclosed privately during showings.