What FSBO sellers need to know about buyer agent commissions after the NAR settlement. How commissions work, what to offer, and how it affects your sale.
Start Managing Your ListingThe 2024 NAR settlement fundamentally changed how real estate commissions work in the United States. As a seller managing your own listing, understanding these changes is critical to pricing your home and structuring your sale correctly.
Historically, the seller paid both the listing agent commission (typically 2.5-3%) and the buyer's agent commission (typically 2.5-3%), bundled into a single 5-6% total commission. The listing agent would offer the buyer's agent commission through the MLS as a blanket offer of compensation.
Key changes:
As a seller-managed listing, you're already saving the listing agent commission (2.5-3%). The question is: should you offer buyer agent compensation?
Offering 2-2.5% buyer agent compensation ensures maximum exposure. Most buyers still work with agents, and if their agent knows they'll be compensated, they're more likely to show your home.
Pros: Maximum buyer pool, agents actively show your home, smoother transactions
Cons: Costs 2-2.5% of sale price
You can choose not to offer any buyer agent compensation. The buyer would need to pay their own agent.
Pros: Maximum savings, keep 100% of the sale price
Cons: Smaller buyer pool, some agents won't show your home, may need to reduce price to compensate
Instead of a percentage, offer a flat fee (e.g., $5,000) or reduced percentage (1-1.5%). This saves money while still incentivizing agents.
| Scenario | $500,000 Home | Your Cost | Your Savings vs Traditional |
|---|---|---|---|
| Traditional (6% total) | $30,000 | $30,000 | — |
| FSBO + 2.5% buyer agent | $12,500 | $12,500 | $17,500 |
| FSBO + 2% buyer agent | $10,000 | $10,000 | $20,000 |
| FSBO + no buyer agent comp | $0 | $0 | $30,000 |
Even offering full buyer agent compensation, you're saving $17,500 on a $500K home by not paying a listing agent.
No. Since the NAR settlement, sellers are not required to offer buyer agent compensation. However, not offering it may reduce your buyer pool since many buyers expect their agent to be compensated by the seller.
Historically 2.5-3%, but post-NAR settlement everything is negotiable. Many buyer-broker agreements are being written at 2-2.5%. Some buyers negotiate flat fees with their agents.
Technically, agents must show any home their client wants to see. Practically, if your home doesn't offer buyer agent compensation, some agents may not proactively suggest it. Being on the MLS and pricing competitively helps overcome this.
Yes. This is increasingly common post-NAR settlement. The buyer can pay their agent directly, or it can be structured as a seller concession (where the seller credits the buyer at closing to cover their agent's fee).
You can note it in your MLS listing remarks, on your Show & Disclose portal, or communicate it directly when agents call about showings. Being upfront about compensation terms avoids confusion.