Buyer Agency Post-2024: A Reality Check

Worcester, Massachusetts
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Buyer Agency Post-2024: A Reality Check

Brian J Allen
Real Estate Agent · Worcester, MA · Member since 2018 · 523 posts · 411 votes

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:

  • 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.

  • 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.

  • 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.

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  • Matthew MorrowBusiness Member
    Investor · PA - NY - NJ · Member since 2019 · 859 posts · 303 votes
    2d

    @Brian J Allen agree that commissions were always negotiable. What I've seen change the most is the first conversation with a buyer. With investors we always started with a real talk about financing and what they actually want to buy, and now the agreement is just part of that same conversation. Serious buyers don't seem to mind. Good post.

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  • Brian J Allen
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    Real Estate Agent · Worcester, MA · Member since 2018 · 523 posts · 411 votes
    1d

    I think the primary change is the uncertainty. Buyer could see that their agent was getting compensated. Now the buyer has to sign an agreement for their agent's compensation and hope that it is covered inside of the deal. I would say that 50% of the time the sellers will not pay that compensation, and try to squeeze the buyer agent to a lower %. This should be illegal. The sellers are no longer supposed to dictate the buyer agent compensation, but they still want control of that. If I have a 2.5% buyer agent compensation agreement with my buyer and the seller is only willing to allow(notice I don't say pay) 2% within the closing, do I really go after my client for .5%? That doesn't see to be good practice if I have a first time home buyer. How do others feel?

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  • Ametria Chaney
    Realtor · Memphis, Shelby County · Member since 2026 · 165 posts · 56 votes
    1d

    The biggest practical change I have seen is that the compensation conversation now happens up front, before showings, instead of being assumed. That can feel awkward at first, but it actually protects both sides when it is handled clearly. A buyer should understand, in plain language, what services are covered, how long the agreement lasts, what happens if they buy a home they found on their own, and how compensation will be handled if a seller offers less than the agreed amount. I would also ask how the agent handles that gap before an offer is written, because that is where surprises usually show up. Clear terms at the start make the rest of the transaction smoother, and they help a buyer choose representation based on service, not just on a headline number.

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  • Brian J Allen
    OP
    Real Estate Agent · Worcester, MA · Member since 2018 · 523 posts · 411 votes
    1d

    @Ametria Chaney how would you handle this situation? You have a buyer agent agreement with a first time homebuyer and it says you are to be compensated at 2.5%. You make the offer subject to the 2.5% compensation within the transaction. Then the sellers agent simply says you can only have 2%, that is all that I'm getting. Would you ask your buyer to come up with the other .5%? or just eat it, or take your buyer to a different property? This is where the difficulty lies, in that many buyer simply don't have enough cash to pay outside of the transaction and they need to finance it within. Do you have any guidance you can share, as this is happening a lot in our market.

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    • Ametria Chaney
      Realtor · Memphis, Shelby County · Member since 2026 · 165 posts · 56 votes
      1d

      I would start with what the buyer agreement actually says, because that document should control the conversation before any shortfall is discussed. If the agreement says the buyer is responsible for the difference, I would walk through that honestly and early, including the total cash the buyer would need, rather than letting it surface at closing. I would also ask the lender whether that amount can be handled within the transaction, since many first-time buyers cannot simply add cash. I would not quietly steer the buyer to a different home over compensation, and I would not promise a result I cannot control. Any change to the agreed compensation should be discussed with the buyer, put in writing, and reviewed with the broker, so everyone is working from the same terms.

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