agency
buyer broker compensation
Buyer broker compensation is the fee paid to the brokerage representing a buyer. It may be paid by the buyer directly, by the seller or listing broker as a concession, or by a combination, but the amount and source must be negotiated. Following the 2024 NAR settlement, offers of compensation are no longer made through MLS, and buyers typically sign written agreements stating the fee before touring.
- Exam tip
- Expect questions on post-settlement practice: compensation is always negotiable, must be stated in a written buyer agreement, and cannot be offered through MLS fields.
- Example
- A buyer signs an agreement to pay her broker 2.5%. On a $400,000 purchase, the seller agrees to cover $6,000, and the buyer pays the remaining $4,000.
Related terms & state variants
Sources
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Last verified: 2026-10-23