Last Updated: Monday, July 27, 2026
How Do Buyers' Agents Get Paid? (& Why Work With One?)
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If you follow the news, you might have heard something about a major change in how real estate agents are paid. If you are in the market for a house, you may be curious about how this change affects you.
The answer is relatively simple: buyers will now negotiate a commission with their agents instead of sellers paying a commission to both agents. This change results from the settlement of a lawsuit that wants buyers to pay less overall for houses. Working with a buyer’s agent is the best way to make sure that your rights and interests are protected in what will likely be the biggest financial investment that you make in your life.
From our offices in Lithia, Eaton Realty works with both buyers and sellers in West Central Florida real estate deals. When representing buyers, our goal is not just to gather listings but to be a true advocate for our clients at each step of the process. If you are considering buying a house in Hillsborough County, reach out to our Tampa real estate agents to learn more about these new rules - and how we can help you buy the house of your dreams.
Why Has Agent Compensation Changed?
Earlier this year, the National Association of Realtors (NAR) reached a settlement in a case where groups of home sellers sued the NAR in 2019 for its standard commission structure. These home sellers alleged that this commission structure violated antitrust laws.
Traditionally, when a seller listed their home with an agent, they did so with the understanding that they would be paying a commission. This commission was typically 5 to 6% of the sale price, split between the seller’s agent and the buyer’s agent - and paid by the seller out of the sale proceeds. If a seller wanted to list the house without agreeing to compensate a buyer’s agent (typically 2.5% to 3%), they couldn’t do so if their agent was a NAR member.
Upset by what they viewed as a type of price-fixing, these sellers sued NAR over its mandatory payment rule. Under this rule, any seller listing a home for sale on the multi-listing service (MLS) must disclose compensation to the buyer-broker. As a result, the buyer broker’s compensation was set before the buyer was identified or the property was even shown. Critics of the system believe that this practice unfairly inflated housing prices.
A jury in the antitrust case found that the NAR mandatory payment rule violated antitrust laws and awarded the sellers $1.8 billion in damages. Ultimately, NAR reached a settlement in the class action lawsuit. As part of the settlement, NAR agreed to pay $418 million to the plaintiffs. In addition, seller’s agents will no longer be required to offer commissions to buyer’s agents.
The upshot of this settlement is that the way that people buy and sell houses will change dramatically. Instead of a standard 5 to 6% commission split between the agents, commissions, specifically buyers-agent compensation, will be negotiable. Because sellers will no longer be required to pay buyer’s agents, buyers will likely be required to pay their brokers directly.
How Buyers’ Agents Get Paid
Starting on August 17, 2024, sellers will no longer be required to pay a buyer’s commission. This will likely result in sellers choosing to list their homes with a 0% commission for the buyer’s agent. In these cases, buyers will be on the hook to pay their agents directly.
The settlement additionally requires a written compensation agreement between the buyer and the buyer’s agent. If you choose to work with an agent as a buyer, then you will sign a written agreement with your agent before touring any homes. Before you sign the agreement, you will have an opportunity to negotiate the terms with your agent. You shouldn’t sign until you understand what you will be paying your agent and what services you will receive in return.
This agreement must include four separate items related to compensation:
- A disclosure of the amount or rate of compensation your agent will receive, and how this amount will be determined.
- The compensation must be specific rather than open-ended. For example, the compensation could be listed as a specific dollar amount, a flat fee, a percentage of the sale price, or an hourly rate. It cannot state that the compensation will be whatever the seller offers to the buyer.
- A term that states that the agent cannot receive compensation for their services from any source that exceeds the amount or rate in the agreement.
- A conspicuous (not hidden) statement that broker fees and commissions are negotiable and not set by law.
Importantly, you must have a written agreement before you tour a home - whether you do so in-person or virtually. However, you don’t need a written agreement if you are just talking to an agent at an open house or inquiring about their services.
A seller can still offer compensation to buyer’s agents, but the compensation offer cannot be advertised on the MLS. This rule is based on a separate allegation of “steering.” This involves agents searching the MLS based on the percentage of commission they will receive, which could result in agents not showing buyers homes that fit their criteria because of low commission rates. Because the commission rate is no longer listed on the MLS, buyer’s agents cannot “steer” clients towards houses with higher rates.
While the rules regarding compensation have changed, it is important to understand that your Realtor has the same ethical obligation to work in your best interest. Compensation rates remain fully negotiable. As a buyer, you can also interview agents and decide for yourself who you would like to represent you in the process.
The Benefits of Working with a Buyer’s Agent
A buyer’s agent is a real estate professional representing your interests when purchasing a house. The seller will typically have their own agent - the listing agent - who represents their interests.
In the wake of the changes to buyer’s agent compensation, some buyers may be tempted to skip hiring an agent and choose to represent themselves or even rely on the seller’s agent to do the work associated with the sale. But buying a home may be the biggest financial investment that you make in your life - and you should have a professional to make sure you’ve done things properly.
A buyer’s agent guides buyers through the process of buying a house, from the initial search to closing. A buyer’s agent won’t simply search online listings for you. They will:
- Find homes for sale according to the type of home you can afford based on the current market, your desired neighborhood, and your needs and wants. Because agents have access to the MLS, they have more information available than real estate apps and websites.
- Advise you on local schools, neighborhoods, and other information. Even if you live nearby, you might not have the same insight into things like zoning laws, restrictions on short-term rentals, and taxes. Your agent can provide insight into the market and area based on their experience working in West Central Florida.
- Explain real estate documentation like disclosures and inspection reports. These documents often aren’t self-explanatory and can be difficult to decipher if you aren’t used to reading them. Your agent can break down what they mean and how they will affect the potential transaction.
- Help you make an offer, including deciding on a price and determining what contingencies to include. A buyer’s agent can explain various terms in a real estate contract and help you make the best decision based on the property and current market conditions.
- Negotiate the terms of the sale with the seller. Negotiation can include making the initial offer plus any counteroffers. They may also advise you on terms and price and help you figure out if you should walk away from a deal.
- Refer you to other professionals. Buyer’s agents have relationships with other people involved in real estate, such as home inspectors, lenders, and real estate attorneys. They can provide you with recommendations for other professionals that they know to be trustworthy.
Remember: buying a house is a major financial decision. It is also a complicated legal process that involves far more than simply finding listings online. Your buyer’s agent will advocate for you throughout the process, from finding homes to tour to negotiating a deal to closing. While you aren’t required to hire an agent to help you through the process, it is recommended for almost every buyer.
While some buyers may worry about the cost of hiring an agent, it is important to remember that under the old rules, the commission was essentially built into the listing price. A seller would set the price based on what they wanted to make on the sale and account for the commission in that way. For example, if a seller had a contract with a 5% commission to be split between the buyer and seller’s agents, they may have set the price 5% higher. A $500,000 house might be listed for $525,000 - which is a cost that would ultimately be passed onto the buyer without any ability to negotiate how much the agents are paid.
Under the new rules, buyers can negotiate the amount they pay their agent directly - which might be less than 3% in hot markets. Sellers may also reduce listing prices because they no longer have to pay both agents. In most situations, buyers won’t be paying more than they would have under the old rules - and they might even pay less overall by negotiating their own contract with their agent.
What if I Can’t Afford to Pay a Buyer’s Agent Fee?
Since the buyer's agent fees were previously part of the home's purchase price, they could be included in the mortgage amount and financed by the buyer. Now that buyers are responsible for paying their agent’s fees, they may realize they don’t have the funds for a down payment plus money to pay for their agent. Fortunately, buyer's agent fees can be negotiated just like any other closing cost when making an offer and negotiating a deal. For example, you could request the seller to increase the price of the house but pay the buyer's agent fees. This way, the fees are still easily included in the mortgage and you won’t have to bring more cash to closing. Your agent will guide you through the negotiation process to find a deal that makes the most sense for your situation.
Work with Eaton Realty to Buy a Home in Hillsborough County
Before the NAR settlement, hiring an agent was a no-brainer for buyers because the seller ultimately paid their commission. While the new rules have changed the calculus a bit, working with a buyer’s agent when purchasing real estate is still beneficial. Your agent won’t just collect listings for you - they will truly advocate for you through each step of the process.
At Eaton Realty, we represent buyers and sellers in real estate transactions in Hillsborough County, Florida. We understand that this new landscape may be confusing for buyers and are here to explain the system and advocate for your best interests. Our Tampa real estate agents go above and beyond to serve as buyers’ agents, helping our clients understand their rights, the market, and everything they need to know about buying a house in West Central Florida. To learn more, fill out our online contact form or call our office at 813-672-8022.
