Can a Seller Refuse to Pay a Buyer’s Agent?

Key Takeaways

• Sellers can refuse to pay a buyer’s agent, and commissions remain fully negotiable even after the 2024 NAR settlement
• MLS listings can no longer display buyer agent commission offers, meaning any compensation must now be negotiated outside of the MLS between the parties involved
• Not offering a buy-side commission can reduce a seller’s costs, but it can also limit buyer interest, especially among buyers who prefer not to pay their agent out of pocket.
• Sellers can still attract buyers by offering concessions or leaving compensation open, allowing buyers to suggest how to structure their agent’s compensation within the offer

Buying a house is already complex and the question “can a seller refuse to pay a buyer’s agent?” has become even more common as real estate commission rules continue to evolve. Since the NAR Settlement 2024 After reshaping the way buyers and their agents negotiate fees, sellers in 2025 and 2026 will take a closer look at whether offering a buyer’s commission is still necessary or even expected in their local market.

The first market data show a clear shift. According to Redfin’s internal analysisthe share of sellers offering a buyer’s agent commission has fallen compared to early 2024; however, most listings still include some level of compensation to stay competitive. As the market adapts, sellers have more flexibility, but they also face new decisions about how these changes could impact their sales.

If you’re preparing to put your home on the market in 2025 or 2026, here’s what you need to know about your options, how the rules are changing, and how refusing to pay a buyer’s agent could affect buyer interest, listing activity, and your ultimate selling decision. sales price.

Who pays the broker?

Many sellers have historically paid both the buyer’s and seller’s agent’s fees from the proceeds of the sale. But starting August 17, 2024, buyers will now agree to their broker’s fee in writing before you go on tour. Buyers can still ask the seller to cover the buyer’s real estate agent fees when making an offer.

This change increases the amount the seller must pay pay a buyer’s agent varies from buyer to buyer. Redfin expects that some sellers will continue to cover buyer agent commission costs on many transactions, but that these costs will increasingly be negotiated as part of the offer.

Here are two options for how a seller can navigate the new commission process:

• • The seller can leave it open and ask buyers to submit their best offer, including compensation for a buyer’s agent, and negotiate from there.
  • Sellers can proactively offer a concession that the buyer can use to pay their agent as part of their home’s marketing strategy. They can still communicate this to buyers and agents when a buyer’s agent contacts the listing agent to schedule a showing.

Can a Seller Refuse to Pay a Buyer’s Agent?

Yes, a seller can decide whether to offer compensation to a buyer’s agent. That flexibility existed long before the 2024 changes, and what’s different now is how those fees can be communicated and negotiated.

From August 17, 2024, the NAR settlement no longer allows listing agents to display or publish offers of compensation buyer’s agents on the MLS. Any compensation a seller wants to offer, if anything, must now be discussed outside of the MLS, either between the seller and the listing agent or between the buyer and their agent.

Because buyer agent compensation is no longer visible in MLS search results, this change also eliminates a long-standing concern in the industry, the issue of to steer. In the past, some agents have been accused of favoring listings with higher commissions and overlooking homes that better suited their clients’ needs. Removing compensation from MLS screens is intended to reduce these conflicts and support a more transparent home search process.

Sellers are still completely free to decide what commission on the buy side or concessionsif there are, they want to offer. Commissions are not legally established and remain fully negotiable between all parties involved.

Potential pros and cons of not paying the buyer’s agent commission

Your agent can help you understand buyer agent commission options and the pros and cons. The decision whether or not to offer a commission is part of your overall marketing strategy for your home and will depend on price, location and demand for homes in your area.

Pros:

• Lower sales costs: Not offering a buyer’s commission can reduce the overall costs associated with selling a home, potentially leading to higher net proceeds from the sale.
• Greater flexibility in negotiations: By not paying the buyer’s agent, sellers have more flexibility in negotiating other terms, such as the sales price or concessions, giving them more control over the transaction.

Disadvantages:

• Reduced attractiveness of the house: Without a buyer’s commission, a home may be less attractive to buyers who work with real estate agents, because those buyers have to pay their real estate agent fees out of their own pocket.
• Reduced competitiveness: Homes that do not offer a buyer’s commission may be less competitive compared to comparable listings because many buyers expect the seller to cover these costs.
• Perception of additional costs: Buyers may be deterred by the additional out-of-pocket costs associated with covering their agent’s commission, which could lead to fewer showings and potentially longer time on market.

Does not paying the purchase commission have consequences for the sale of a home?

Not offering a buyer’s commission can reduce the number of buyer’s agents who are motivated to show a home to their clients, and the number of buyers who have already agreed to a fee with their agent before showing the house. However, if the home is priced competitively and marketed effectively, it can still attract buyers.

If a seller decides to pay the buying commission, what factors should be taken into account?

When determining the buying commission, sellers should consider factors such as the competitiveness of the local market, the condition and price of the home, and the urgency of the sale. Sellers and their agents can review comparable home sales in the area and assess how commissions affected their time on the market and final sales prices.

Frequently asked questions

1. Do Sellers Legally Have to Pay a Buyer’s Agent?

No. There are no federal or state laws that require sellers to pay a buyer’s agent. Commissions have always been negotiable and sellers can choose whether to offer compensation or make concessions that buyers can apply to their agent’s compensation.

2. Will refusing to pay a buyer’s agent negatively affect my chances of selling?

Depending on the market, this is possible. Some buyers may not want to pay their agent out of pocket, which could reduce show activity. However, competitively priced homes that are well marketed can still attract strong offers even without a buyer’s commission.

3. Can buyers still ask the seller to cover their real estate agent’s costs?

Yes. Although buyers now sign an agreement detailing their agent’s compensation before touring the homes, they can still request that the seller cover some or all of the costs during negotiations. Whether a seller agrees depends on the strength of the offer and local market conditions.

4. How do agents get paid now that commissions aren’t showing on the MLS?

Buyer agent compensation is now negotiated outside of the MLS. Sellers can offer a concession, leave the compensation unspecified, or pay nothing at all. Buyers and their agents can also structure the consideration within the purchase agreement, if both parties agree.

5. Should I offer a buyer-agent commission in 2025 or 2026?

It depends on your market. In competitive or more expensive markets, offering some form of compensation can help attract more buyers. In slower marketsa strategic concession or an open approach could work just as well. Your listing agent can help you tailor a strategy based on local demand and pricing trends.

One final note

Sellers have more options than ever when it comes to handling buyer agent commissions, and the decision not to pay a buyer agent is entirely within the seller’s rights. By weighing the pros and cons – such as potential cost savings versus reduced buyer interest – sellers can make an informed decision that fits their goals. Like the real estate market continues to evolve in 2026, flexibility and strategic negotiation will be the key to a successful sale.