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Fact check: Do Sellers Still Pay the Buyer’s Agent? New Rules Explained for 2025
Executive Summary
New rules and legal settlements since early 2025 changed how buyer-agent commissions are disclosed and offered, making seller-paid buyer commissions optional and negotiable rather than automatic on MLS listings. Implementation varies: some markets and brokers moved quickly to require written buyer agreements and direct negotiation, while data through September 2025 shows sellers in many markets still commonly pay buyer agents in practice, even if they are no longer required to do so [1] [2] [3].
1. How the legal and industry shifts rewired commission offers—and why it matters
Regulatory changes and high-profile legal actions in 2024–2025 forced listing practices to change: MLS postings can no longer automatically offer a buyer-agent commission as a field set by the seller, and brokerages adopted protocols requiring buyer agency agreements before showings. That means the historic shortcut—seller offers a split on MLS that incentivized buyer agents—has been dismantled, requiring commissions to be negotiated directly between parties or documented in separate agreements [1] [2] [4]. The practical effect is an increase in upfront negotiation and potential for variability in who pays and how much, changing incentives for steering and transparency [4].
2. Courts and settlements reshaped rules—but implementation differs across markets
A major settlement with the National Association of Realtors and subsequent policy shifts prompted national and local changes in commission practices in early 2025, but implementation has not been uniform. Some brokerages and MLSs moved quickly to adopt new listing rules and written buyer agreements, while others lagged or interpreted the rulings differently, producing patchwork effects across regions [5] [4]. Observers warned that absence of uniform practice could produce short-term confusion for consumers and agents and create opportunities for negotiation tactics and competitive fee models to emerge [2].
3. Data through mid-to-late 2025: practice hasn’t fully matched policy change
Market-level data through Q2 and Q3 2025 shows that despite new rules, average buyer-agent commissions remained close to prior levels and sellers continued, in many markets, to cover buyer agents. Reports from September 2025 found the average buyer broker fee near 2.43%, almost unchanged year-over-year, indicating sellers still often factor buyer-agent compensation into listings or offers even where it’s technically optional [3]. This suggests market norms, buyer expectations, or competitive pressures are keeping seller-paid commissions common despite formal changes.
4. What the new mechanics mean for buyers and agents at the negotiation table
Practically, buyers may now need a written buyer-agent agreement that spells out whether the buyer or seller pays the agent, fee amounts, and services provided; agents face increased pressure to demonstrate value to earn direct fees. Guidance for negotiating commissions stresses that both buyers and sellers can strengthen bargaining power by shopping around, defining needed services, and showing readiness to transact—factors likely to shape fee outcomes as negotiation replaces default MLS offers [4] [6]. The shift favors consumers who are informed and willing to negotiate, but disadvantages inexperienced buyers without representation.
5. International and alternative-market responses show different models emerging
Outside the U.S., markets such as Australia display different norms and alternatives: state-by-state guides in 2025 highlighted a range of commission rates and the rise of commission-free or flat-fee services that compete with traditional agents. That diversity shows how market structure and regulation shape who pays and how much, offering examples of alternative business models—flat fees, online platforms, and buyer-paid agreements—that could influence U.S. practices over time if consumers demand lower or more transparent costs [7].
6. Conflicting interests and agendas to watch—who benefits from which narrative
Industry groups and large brokerages have incentives to preserve commission-based compensation structures, while challenger platforms and consumer advocates push for fee transparency and alternative pricing. Coverage from brokerage-aligned outlets framed changes as clarifying negotiations and protecting agent income, while consumer-oriented pieces emphasized competition and bargaining advantages. Recognizing these agendas helps explain why some outlets emphasize rapid change while market data shows slower, incremental shifts [1] [3].
7. What consumers should do now to protect their interests
Buyers and sellers should treat commission terms as negotiable, secure written agreements, and shop and compare service levels and fees. Sellers should explicitly state commission policies in listing strategy discussions; buyers should ask for a buyer agency agreement that clarifies payment and services. Market data and expert guidance through 2025 consistently recommend proactive negotiation and documentation as the best defense against confusion or surprise charges [4] [6].
8. Bottom line: rules changed, behavior is catching up—expect continued transition
The legal and MLS rule changes of 2025 made seller payment of buyer-agent commissions optional and shifted emphasis to direct negotiation and written agreements, but market behavior has lagged, with sellers still often paying buyer agents in many markets through late 2025. Consumers and agents should expect an ongoing transition period marked by local variation, continued negotiation over fees, and gradual emergence of new business models and disclosures that will determine long-term outcomes [5] [3].