Buyer Agency Post-2024: A Reality Check

The real estate settlement in 2024 promised to change everything, specifically regarding buyer agent commissions on the MLS. While the intent was to address high costs for sellers, the practical reality for the market has been different.

Here is what has actually changed:

1. Commissions are Negotiable: The settlement formalized what was already true, all commissions are negotiable. However, removing the buyer agent commission from the MLS has only added an extra layer of negotiation to the offer process.

2. The 'Who Pays' Misconception: We need to dispense with the idea that the seller pays the commission. In any transaction, the buyer is the only party bringing new money to the table. They are de facto paying both the buyer and seller agent fees; the seller simply nets whatever remains after the sale.

3. The New Negotiation Landscape: Sellers often ask their agents to renegotiate buyer agent compensation, despite the buyer agent having a pre-existing contract with the buyer. This creates friction. If a seller is unhappy with the commission being paid to the buyer agent, the standard, professional approach is to ask for a higher purchase price, not to force a commission reduction on the buyer's representation.

This settlement didn't change how commissions work; it just made the negotiation process more cumbersome. WorcesterMulti believes transparency and direct negotiation are always the best path forward for all parties.