How Agents Are Paid

Real estate commissions changed in 2024 and most people are still working from the old picture. Here is the current one.

What changed

As of August 17, 2024, agents can no longer list an offer of buyer-agent compensation in the MLS. Sellers can still offer it, and agents can still discuss it directly, on social media, or anywhere other than the MLS. Buyers now sign a written agreement with their agent before touring homes.

If you are selling

Your listing agent's fee is negotiated between you and your agent before the home goes on the market. It is usually a percentage of the sale price or a flat fee, and it should reflect what you are getting: pricing, marketing, negotiation and managing the transaction.

Separately, you can choose to offer compensation to the buyer's agent. It is optional. Offering it can make your home easier for buyers to afford, since many buyers do not have cash to pay their agent on top of a down payment. The amount is yours to decide and can be negotiated in the offer.

If you are buying

Your buyer agreement states what your agent does for you and what they are paid. That amount can come from the seller if the seller offers it, from you at closing, or a combination. When we write an offer, the request for the seller to cover it is part of the terms, the same as the closing date or an inspection contingency.

What did not change

The work. Research, pricing, negotiation, deadlines, and the hundred small problems between contract and keys. What changed is that the conversation about money happens up front and in writing, which is where it belonged all along.