If you bought or sold a home before the changes took effect in August 2024, you probably experienced a familiar pattern: the seller likely paid not only the listing agent, but also the buyer’s agent — *your* agent. Put simply, buyers rarely had to pay their agent’s commission out of pocket.
Because that arrangement became common, many people assumed it was required. It was not — and never was. It was simply the convention in most markets.
In August 2024, changes related to buyer representation and agent compensation took effect nationwide. Those changes have led to a lot of discussion — and, in some cases, confusion — about what changed, what did not, and what it means for buyers and sellers.
This post explains the basics. This post explains what has changed, what has not, and where some of the biggest misconceptions tend to show up. I also link to separate posts for buyers and sellers who want a more practical explanation of what these changes may mean in real life.
What Hasn’t Changed
One of the biggest misconceptions is that sellers were required to pay the buyer’s agent. They were not. That was never a law or universal rule. It was simply a common arrangement that became the norm in most markets.
Buyers can still choose to work with an agent, and sellers can still decide whether to compensate the agent representing the buyer. The main changes concern how compensation for the buyer’s agent is handled and disclosed.
What Has Changed
First, the MLS — the database agents use to find and share listings — no longer displays whether or how much the seller is offering to pay the buyer’s agent. For many years, that information was visible in the MLS. Now it is not.
Second, agents working with buyers are now required to have a written agreement with them before touring homes. Among other things, that agreement addresses how and how much the buyer’s agent will be compensated.
Misconceptions
One misconception is that sellers can no longer offer compensation to the buyer’s agent, and that buyers must always pay their agent out of pocket. Neither is true. Sellers can still offer to pay the buyer’s agent, but that offer is no longer displayed in the MLS. Now, compensation is addressed more directly: first in the agreement between the buyer and the buyer’s agent, and then, when needed, in negotiations with the seller.
More for Buyers and Sellers
This post explains the broad changes. If you are a buyer and want to understand what these changes may mean for you when hiring an agent, touring homes, writing offers, or negotiating costs, see my separate post for buyers. If you are a seller and want to understand how these changes may affect your pricing, marketing, negotiation strategy, and whether to offer compensation to the agent representing the buyer, see my separate post for sellers.