Frequently Asked Questions
What changed with the 2024 NAR settlement?
The settlement ended the practice of baking buyer-agent compensation into MLS listings. Sellers no longer automatically owe the buyer's agent a fee. Buyers must sign a written compensation agreement before touring homes.
Do I have to pay the buyer-agent fee out of pocket?
Not necessarily. You can negotiate for the seller to cover some or all of the buyer-agent fee as a concession in your purchase offer, or in some cases roll it into the loan.
What is a reasonable buyer-agent commission now?
Rates vary by market and agent. The historic 2.5-3% is still offered but increasingly negotiated down. Rates of 1-2% are common, and flat fees of $3,000-$6,000 are an option.
Can I buy a home without a buyer's agent?
Yes, but it carries risk. You negotiate directly against the listing agent who represents only the seller. A flat-fee transaction-only agent for $1,500-$3,000 can be a reasonable middle ground for experienced buyers.
Is the buyer-agent fee tax-deductible?
For a primary residence, it adds to your cost basis, reducing taxable gain at eventual sale. For investment properties, it is capitalized into the property's basis as an acquisition cost.
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