The 2024–2025 NAR Real Estate Commission Changes Explained

What Buyers, Sellers, and Agents Need to Know

The 2024 settlement involving the National Association of Realtors® (NAR) created one of the biggest changes to real estate practices in decades.

Many headlines suggested that “commissions were eliminated” or that “buyers now pay their agent.” Neither is exactly true.

In reality, the settlement changed how compensation is disclosed, negotiated, and documented during a real estate transaction.

This guide explains the new rules step-by-step so buyers and sellers can understand how commissions now work in today’s market.

Buyers Must Now Sign a Buyer Agency Agreement Before Touring Homes

One of the most significant changes is that agents working with buyers must now have a written agreement in place before showing property.

This requirement ensures that buyers understand how their agent is compensated and what services they are receiving.

There are two common types of buyer agency agreements used in Pennsylvania.

Exclusive Buyer Agency Contract

An Exclusive Buyer Agency Contract means the buyer agrees to work with one brokerage for a specified period of time.

Key points:

• The brokerage represents the buyer’s interests
• The contract defines the buyer agent’s compensation
• The buyer agrees not to work with other agents during the contract term
• The agent owes fiduciary duties including loyalty, confidentiality, and advocacy

This is the most common type of buyer representation agreement.

Non-Exclusive Buyer Agency Contract

A Non-Exclusive Buyer Agency Contract allows the buyer to work with multiple agents.

Key points:

• The agreement applies only to properties shown by that agent
• The buyer may work with other agents simultaneously
• Compensation is still defined in advance

These agreements are sometimes used for initial property tours or limited representation situations.

Commission Can No Longer Be Displayed in the MLS

Prior to the settlement, listing agents could advertise buyer agent compensation directly in the MLS.

That practice is now prohibited.

The new rules state:

• Listing brokers cannot publish offers of compensation in the MLS
• Compensation may still be offered — but must be communicated outside of the MLS

This change was one of the core components of the settlement aimed at increasing transparency and competition.

How Buyer Agents Now Learn What Compensation Is Offered

Because compensation can no longer appear in the MLS, agents now use a separate agreement called a:

Cooperating Broker Compensation Agreement (CBC)

The CBC form documents the amount a listing broker agrees to pay a cooperating broker representing a buyer. 

The form specifies:

• The property address
• Listing brokerage
• Cooperating brokerage
• The compensation offered (percentage or dollar amount)

The listing broker agrees to pay that compensation at settlement if the cooperating broker is the procuring cause of the transaction. 

How Revolve Real Estate Handles This

At Revolve Real Estate, we wanted to make this process as transparent and simple as possible for cooperating agents.

For every listing, we publish the compensation details in one centralized location:

revolvepa.com/compensation

This allows buyer agents to easily access compensation information without needing to call, email, or request it individually.

Sellers Can Offer 0% Buyer Agent Compensation

Under the new rules, sellers now have the option to offer:

• a full buyer agent commission

• a partial commission

• 0% buyer agent compensation

In other words, a seller could list a property and choose to pay only their listing brokerage.

However, commission has always been negotiable, and that remains true today.

Even when a seller offers 0% buyer agent compensation, buyers may still request that the seller cover their agent’s fee within the purchase agreement.

Why Offering 0% Buyer Agent Compensation Can Hurt a Seller

While sellers technically can offer zero buyer agent compensation, doing so may actually reduce buyer interest and negotiating strength.

Buyers Can Still Ask for Commission — And Often Do

If a listing offers 0% compensation, buyer agents will often request compensation within the purchase offer itself.

Example:

Seller lists home with 0% BAC

Buyer submits offer requesting:

• purchase price: $400,000

• buyer agent compensation: 3%

Because the commission becomes part of the negotiation instead of a pre-agreed offer, sellers may end up facing higher compensation requests than they might have initially offered.

Many Buyers Cannot Afford an Additional 3% in Cash

Purchasing a home already requires substantial upfront costs.

Typical buyer expenses include:

• down payment

• lender closing costs

• inspections

• appraisal

• moving expenses

• initial repairs

If a buyer must also pay 2–3% agent compensation out of pocket, that can add thousands of dollars to their required cash.

Example:

Home price: $350,000
3% agent compensation = $10,500

Many buyers simply do not have an extra $10,500 available.

This means they may skip the property entirely.

Buyers Often Cannot Finance the Fee

When buyer agent compensation is negotiated within the purchase price, buyers can often effectively finance that cost through their mortgage.

Example:

Home price: $400,000
Offer price: $410,000
Seller concession covering commission: $10,000

The buyer finances the higher purchase price over the life of the mortgage rather than paying it in cash.

When a listing refuses compensation entirely, buyers may not be able to structure the transaction this way.

This dramatically limits the buyer pool.

Fewer Buyers Can Mean Lower Offers

The strongest outcomes for sellers occur when multiple buyers compete for a property.

Reducing the buyer pool can result in:

• fewer showings

• fewer offers

• weaker negotiation leverage

Ironically, trying to avoid paying a buyer agent commission can sometimes lead to a lower overall sale price.

What Happens If the Offered Compensation Is Less Than the Buyer Agreement?

The buyer agency agreement defines the maximum compensation the buyer agent will receive.

If the seller offers less than that amount, the buyer is responsible for the difference.

Example:

Buyer agency agreement: 3%

Seller offering via CBC: 2%

Result:

Seller pays 2%
Buyer pays remaining 1%

Buyer agency agreements state that the buyer is responsible for paying any portion of the fee not covered by seller or broker compensation.

Buyer Agents Can Accept Less — But Not More

Under the settlement rules, buyer agents cannot receive more compensation than what is stated in their agreement with the buyer.

However, they can agree to accept less.

Example:

Buyer agreement: 3%
Seller offering: 2%

The buyer agent may choose to accept the 2% and waive the difference.

But they cannot receive more than 3% from any combination of sources.

Why Commission Cannot Simply Be Added to the Offer

Some agents mistakenly believe they can simply add buyer agent compensation to the purchase offer.

However, the Pennsylvania Agreement of Sale contains a section where a seller may pay a Buyer Broker Fee, which is in addition to any broker-to-broker compensation agreement. 

Example:

CBC compensation: 2%

Agreement of Sale Buyer Broker Fee: 3%

Total seller obligation = 5%

For this reason, buyer agents must be careful not to duplicate compensation that has already been offered via a CBC.

Some Brokerages Are "Refusing to Acknowledge CBC Agreements"

The CBC form was created specifically to document broker-to-broker compensation outside of the MLS, which is now required.

Ignoring properly executed CBC agreements may lead to:

• broker disputes

• arbitration through local Realtor associations

• potential ethical violations

Stating that a brokerage "doesn't believe in" or "doesn't use" a CBC form, is irrelevant. The CBC form directly reflects the already signed Listing Contract. Moreover, the Agreement of Sale specifically states:

SELLER CONCESSIONS (9-25)

(A) Buyer Broker Fee

In addition to any cooperating compensation negotiated between the brokers using the Cooperating Broker Compensation Agreement (PAR Form CBC) or via some other agreement, if any, Seller will pay the following fee to Broker for Buyer on behalf of Buyer at settlement.

Now, if the Listing Agreement (and therefore the CBC because it directly reflects the listing agreement) showcased 0% buyer agency compensation offered, it would make sense to negotiate it into the Agreement of Sale. Buyers and their agents can do anything they want here... they could ask for an addtional $10,000 in compensation in the agreement of sale in addition to what is offered on the CBC, but it would clearly weaken the offer and expose the seller to paying for something they may not realize that they are agreeing to. Buyers should keep this in mind when selecting their agent and during commission negotiations. If your agent does not understand NAR rules or the Agreement of Sale verbiage, they may not be a great fit.

5 Common Misconceptions About the New Commission Rules

Since the settlement, several myths have circulated about how real estate commissions now work.

Here are the most common misunderstandings.

“Commissions Were Eliminated”

They were not.

Commissions still exist and remain fully negotiable between clients and agents.

The changes simply affect how compensation is disclosed and negotiated.

“Buyers Now Have to Pay Their Agent”

Buyers may pay their agent, but sellers can still cover that compensation.

In many transactions, sellers still choose to offer buyer agent compensation or negotiate it during the offer process.

“Sellers Can’t Pay Buyer Agents Anymore”

They absolutely can.

The only restriction is that compensation cannot be advertised through the MLS.

“Offering 0% BAC Saves Sellers Money”

Sometimes it does.

But often it simply moves the negotiation into the purchase contract or reduces the buyer pool.

“Agents Can Charge Whatever They Want”

Not exactly.

Buyer agents cannot collect more compensation than what they agreed to with their client in the buyer agency contract.

This actually creates more transparency and structure, not less.

How the New Commission Rules Affect Buyers in Pennsylvania

For buyers in Pennsylvania, the biggest practical change is that you will now formally hire your real estate agent before touring homes.

This means buyers should expect to review and sign a Buyer Agency Agreement before their agent begins scheduling showings.

While this may feel like a new step in the process, it actually provides several important benefits.

1. Buyers Now Have Clear Representation

A buyer agency agreement clearly establishes:

• who represents the buyer

• the duties owed to the buyer

• how the agent is compensated

• the length of the representation relationship

Once this agreement is signed, the agent is legally obligated to act in the buyer’s best interests, including negotiating price, repairs, and contract terms.

2. Buyers Have More Transparency Around Compensation

Under the new rules, buyers will clearly see:

• the commission their agent charges

• how that commission may be paid

• what happens if the seller offers less than that amount

For example, if a buyer agent agreement specifies 3% compensation, but the seller only offers 2%, the buyer may be responsible for the remaining 1%.

However, buyers can still request that the seller cover some or all of that cost within the purchase negotiation.

3. Buyers Should Plan for This Conversation Early

Because buyer agency agreements must be signed before touring homes, buyers should expect to discuss:

• representation structure

• compensation

• strategy for negotiating commission within offers

An experienced agent will walk buyers through these options so they fully understand how the transaction will be structured.

How Sellers Should Decide What Buyer Agent Compensation to Offer

With compensation no longer displayed in the MLS, many sellers are asking:

“Should we still offer buyer agent compensation?”

The answer depends on the seller’s goals and the strategy for the property.

Here are several factors sellers should consider.

1. Maximizing Buyer Exposure

The more buyers who can afford a property, the stronger the seller’s negotiating position.

Offering reasonable buyer agent compensation helps ensure:

• more showings

• more buyer interest

• stronger offers

2. Reducing Negotiation Friction

When compensation is offered upfront through broker agreements, negotiations tend to be cleaner.

If compensation is not offered initially, it often becomes a point of negotiation inside the purchase offer.

This can create:

• additional negotiation points

• confusion about compensation structure

• potential disputes over payment responsibility

3. Protecting the Final Sale Price

The strongest sales outcomes typically occur when multiple buyers compete for the property.

Reducing the buyer pool can reduce competition, which may ultimately impact the final sale price.

For this reason, many sellers still choose to offer buyer agent compensation as a way to maximize demand for their property.

How Real Estate Commission Works Now (Visual Breakdown)

To simplify the new process, here is how compensation typically flows in today’s real estate transactions.

Step 1

Buyer signs a Buyer Agency Agreement.

This document establishes the buyer agent’s compensation and representation relationship.

Step 2

Buyer agent identifies properties and schedules showings.

Before submitting an offer, the agent determines whether the listing broker is offering compensation.

Step 3

Compensation is confirmed.

This may occur through:

• a Cooperating Broker Compensation Agreement (CBC)

• broker-to-broker communication

• brokerage compensation websites (like RevolvePA.com/compensation)

Step 4

Offer is submitted.

The buyer and agent structure the offer based on the compensation already offered and any additional negotiation needs.

Step 5

Settlement occurs.

At closing:

• the listing brokerage receives the listing commission

• the cooperating brokerage receives the buyer agent compensation

As long as the compensation does not exceed what was agreed to in the buyer agency agreement.

agreement.

that decision affects buyer demand.”

Frequently Asked Questions About the New Real Estate Commission Rules

Do buyers now have to pay their real estate agent?

Not necessarily.

Buyers may be responsible for paying their agent depending on how compensation is structured, but this has technically always been the case. In many transactions, sellers still offer buyer agent compensation or buyers negotiate for the seller to cover it as part of the purchase agreement.

The main difference today is that compensation is now discussed more openly between the buyer and their agent before touring homes.

Why do I have to sign a buyer agency agreement before seeing houses?

Under the new rules, agents must have a written agreement with buyers before touring properties.

This agreement ensures that buyers understand:

• who represents them

• what services their agent provides

• how their agent will be compensated

It also protects the buyer by establishing a fiduciary relationship where the agent is legally required to act in the buyer’s best interests.

Can sellers refuse to pay buyer agent commission?

Yes.

Sellers can choose to offer any amount of buyer agent compensation, including 0%.

However, buyers may still request that the seller cover their agent’s commission within the purchase offer. Sellers who offer no buyer agent compensation may also see a smaller pool of potential buyers if those buyers cannot afford to pay their agent directly.

What happens if the seller offers less commission than my buyer agent charges?

If the compensation offered by the seller is lower than what is outlined in the buyer agency agreement, the buyer may be responsible for paying the difference.

However, buyer agents can also choose to accept less compensation depending on the circumstances of the transaction.

Can buyer agents receive more commission than what was agreed to?

No.

Buyer agents cannot receive more compensation than what is stated in their buyer agency agreement with their client, regardless of the source of the payment.

This rule ensures transparency and prevents hidden commission increases during the transaction.

How do buyer agents know what compensation is offered if it is not in the MLS?

Because compensation can no longer be displayed in the MLS, brokerages communicate compensation through other methods such as:

• broker-to-broker agreements

• brokerage websites

• direct communication between agents

• compensation agreements like the Cooperating Broker Compensation Agreement (CBC)

At Revolve Real Estate, we make this process easy by publishing compensation details for our listings at:

revolvepa.com/compensation

Are commissions fixed in real estate?

No.

Real estate commissions have always been fully negotiable.

They can vary depending on:

• the brokerage

• the services provided

• the market conditions

• the specific agreement between clients and agents

The new rules simply make those negotiations more transparent.

The Bottom Line

The 2024 commission changes did not eliminate real estate commissions.

Instead, they created a system that is:

• more transparent

• more negotiable

• more clearly documented

For buyers, the biggest change is signing a representation agreement before touring homes.

For sellers, the biggest decision is determining how compensation should be structured to maximize buyer interest and sale price.

As the industry adapts to these changes, working with an experienced brokerage that understands the new rules is more important than ever.

About Revolve Real Estate

At Revolve Real Estate, we stay ahead of industry changes so our clients and agents can navigate transactions with clarity and confidence.

Whether you are buying, selling, or simply trying to understand how these new rules affect the market, our team is here to help guide you through the process.

If you have questions about buyer agency agreements, compensation structures, or the NAR settlement changes, feel free to reach out.