What Actually Changed
In August 2024, a settlement with the National Association of Realtors changed how buyer agent compensation works. The big shift: sellers can no longer advertise buyer agent compensation through the MLS. It also became required that buyers sign a written agreement with their agent before touring homes.
What didn't change: sellers can still offer buyer agent compensation. They just do it outside of the MLS — directly in the offer, through seller concessions, or in marketing materials. The mechanism changed. The economics didn't.
The settlement was about transparency and competition, not about eliminating buyer agent compensation. Sellers who interpreted it as "I no longer have to pay the buyer's agent" were reading something that wasn't there.
Why a Buyer's Ability to Pay Their Agent Matters to You as a Seller
Here's the core issue: most buyers — especially first-time buyers and buyers using FHA or VA loans — are already stretched to cover their down payment and closing costs. Adding several thousand dollars in out-of-pocket agent fees on top of that eliminates or discourages a meaningful portion of the buyer pool.
In Central Maryland, where the median sold price is around $750,000, a buyer agent fee at 2.5% comes to $18,750. That's a significant cash ask on top of a down payment that may already be $75,000–$150,000 and closing costs of another $15,000–$25,000. Some buyers can absorb it. Many cannot.
When a seller doesn't offer buyer agent compensation, they don't just lose some buyers — they also get fewer showings from buyer agents who know their clients can't or won't cover the fee out of pocket. Fewer showings means less competition. Less competition means lower offers and longer time on market.
The Concession Workaround — and Why It Often Costs More
Some sellers think they're being clever by not offering buyer agent compensation upfront, then accepting an offer with a seller concession built in to cover the buyer's agent fee. The logic: "I only pay it if someone asks."
The problem with this approach:
- You've already reduced your buyer pool and showing activity by not advertising the compensation upfront.
- The buyers who do ask for the concession often negotiate on both price AND the concession — meaning you're potentially giving ground in two places.
- In a competitive market, the buyer who asks for a concession is often in a weaker position than the buyer who doesn't need one. You may end up with a less qualified or less motivated buyer.
The question isn't whether to pay the buyer's agent — it's whether you pay upfront and attract more competition, or pay through the back door and negotiate from a weaker position.
When It Might Make Sense to Offer Less (or Nothing)
There are situations where sellers can reduce or eliminate buyer agent compensation without it hurting them significantly:
- Extremely low inventory, high demand — if there are 12 buyers for every listing in your price range, the math shifts. Buyers will figure out how to make the deal work.
- Off-market or direct buyer situations — if you already have a buyer without an agent, the compensation question is moot.
- Higher price points — luxury buyers typically have more cash flexibility and can absorb agent fees as part of their overall transaction costs.
Even in these cases, I'd encourage sellers to run the actual math with their agent before making the decision. The savings you're trying to preserve may be less than the offer price you're leaving on the table by narrowing your buyer pool.
The Straight Answer
In most markets, including Central Maryland in the current environment, sellers who offer competitive buyer agent compensation sell faster and for more money than sellers who don't — because they attract more buyers and more offers.
The settlement changed the paperwork. It didn't change the incentive structure. Buyers still want representation, buyer agents still advocate for their clients, and sellers still benefit from having a deep pool of motivated, represented buyers competing for their home.
If you're planning to sell and want to talk through what makes sense for your specific situation and price point, I'm happy to have that conversation — including what's actually happening in your neighborhood right now.
