The reality is more complicated. Commissions haven't dropped much—yet. But the power to change that is now in your hands, starting with a document you'll sign before you ever tour a home: the buyer-broker agreement.
The Settlement That Changed How You Pay Your Agent
In March 2024, NAR settled antitrust lawsuits alleging its commission rules inflated what sellers—and ultimately buyers—paid in agent fees. The new rules took effect August 17, 2024, with two changes that matter most:
Written agreements became mandatory. Before you tour a single home, you must sign a buyer-broker agreement spelling out exactly how much your agent will be paid—and by whom. The intent was to break a system where commissions were baked into sale prices with little room for negotiation. Whether it's working depends on what buyers do next.
What the Buyer-Broker Agreement Requires
The buyer-broker agreement must now include three specific disclosures:
Specific compensation disclosure. The agreement must state the exact amount or rate your agent will receive—a flat fee, hourly rate, or percentage. Vague language doesn't cut it anymore.
A statement that fees are negotiable. The agreement must include a conspicuous statement that commissions are not set by law and are fully negotiable.
This document is your leverage point. Read it carefully, ask questions, and negotiate before you sign—not after.
The Data: Commissions Haven't Dropped
The new rules created an opening. Most buyers aren't walking through it.
How to Actually Negotiate
The buyer-broker agreement is where negotiation happens—not at closing. Before you sign, you have maximum leverage.
Ask the right questions:
• "What services are included in this commission?"
• "Are you open to a flat fee or hourly rate?"
• "What happens if the seller offers less than your commission—or nothing?"
Know the norms. Most sellers still offer 2.5% to 3% to buyer's agents. But new construction, FSBO listings, and buyer-friendly markets may offer less. If seller-paid commission is unlikely, factor that into your budget.
Understand exit options. Buyer-broker agreements aren't lifetime commitments. Before signing, know how long it lasts and what it takes to cancel if the relationship isn't working.
What If the Seller Won't Pay Your Agent?
Under the old system, sellers almost always paid both agents' commissions. That's no longer guaranteed. Sellers now have options: offer full buyer-agent compensation off-MLS, offer partial compensation, or offer nothing. If the seller offers less than your agreement specifies—or nothing at all—you may owe the difference.
First-timer math: On a $400,000 home, a 2.5% buyer-agent fee is $10,000. That's on top of your down payment, closing costs, and reserves.
How to protect yourself:
• Ask about seller compensation before you tour a property
• Build agent fees into your offer via a seller credit
• Budget for the worst case—if the seller covers it, that's cash back in your pocket
Commission Clarity Is Just the Start
Understanding your buyer-broker agreement puts you ahead of most first-time buyers. But agent fees are one line item in a much longer list of costs that catch buyers off guard.
Recent data shows sellers expected to spend about $18,500 on transaction costs but actually spent over $67,000. Buyers face similar gaps—90% of Gen Z homeowners say they underestimated ownership costs.
The commission conversation matters. So does knowing what else you're walking into before you make an offer.
This is where PropertyLens fits in. A PropertyLens report shows what listings, disclosures, and inspections often miss: historical claims, permit gaps, environmental risks, and projected ownership costs. You can even view a sample report to see what's included.
Commission is negotiable. Hidden property problems aren't—unless you catch them before you bid.
The Bottom Line
The rules changed. Commissions are no longer displayed on MLS, and your obligations to your agent must be spelled out before you tour a home. These changes were designed to give buyers more power.
But power only matters if you use it. Read your buyer-broker agreement carefully. Ask what you're paying for. Negotiate before you sign. And before you make an offer, run a PropertyLens report to see the full cost picture.
Know before you bid. Negotiate with confidence. Own with eyes open.
Sources: NAR Settlement FAQs; Redfin Commission Reports Q2 2025
