In 2025, the real estate industry has undergone significant changes, especially concerning who pays the buyer's agent commission. Traditionally, sellers covered both their listing agent's and the buyer's agent's fees, typically totaling 5–6% of the home's sale price. However, recent legal settlements and policy changes have altered this norm. HomeLight
So, are sellers still paying buyer's agent fees? Let's delve into the current landscape.
The Shift in Commission Structures
In August 2024, a landmark settlement by the National Association of Realtors (NAR) changed how commissions are handled. Key changes include: Contra Costa County Bar Association
- Removal of buyer's agent commissions from MLS listings: Sellers can no longer advertise offers of compensation to buyer's agents on the Multiple Listing Service (MLS). Yahoo Finance
- Mandatory buyer-broker agreements: Buyers must now sign a written agreement with their agent before touring homes, specifying the agent's compensation.
These changes aim to increase transparency and allow for more negotiation in real estate transactions.
Are Sellers Still Covering Buyer’s Agent Fees?
Despite the new rules, many sellers continue to pay buyer's agent commissions. According to a survey, 83% of agents reported that their buyers still expect sellers to cover 100% of the buyer's agent commission. HousingWire
This trend persists because:
- Market competitiveness: Offering to pay the buyer's agent fee can make a listing more attractive to potential buyers.
- Buyer affordability: Many buyers, especially first-time homeowners, may not have the funds to pay their agent's commission out-of-pocket. National Association of REALTORS®
Therefore, while not mandatory, covering the buyer's agent fee remains a strategic move for sellers aiming for a quicker sale.
Implications for FSBO Sellers in California
For those selling their homes without a listing agent (For Sale By Owner - FSBO) in California, these changes present both opportunities and challenges:
- Negotiation flexibility: FSBO sellers can choose whether to offer a commission to buyer's agents, potentially saving on costs.HomeLightYahoo Finance
- Increased responsibility: Without a listing agent, FSBO sellers must handle negotiations, disclosures, and compliance with state laws themselves.
It's crucial for FSBO sellers to be well-informed and prepared to manage these aspects of the sale process.
Navigating the New Landscape with ListLean
At ListLean, we empower FSBO sellers in California to navigate these changes confidently. Our platform offers:
- Flat-fee MLS listings: Gain exposure on major real estate platforms without paying hefty commissions.
- Compliance support: Access resources to ensure you meet all disclosure and legal requirements. Luxury Presence
- Negotiation tools: Utilize our tools to communicate effectively with buyers and their agents.
By choosing ListLean, you maintain control over your sale while benefiting from professional support.
Final Thoughts
While the obligation for sellers to pay buyer's agent fees has changed, many still choose to do so to facilitate smoother transactions. For FSBO sellers in California, understanding these dynamics is essential. With the right tools and knowledge, you can navigate this evolving landscape successfully.
Ready to take control of your home sale? Explore our pricing plans and see how ListLean can support your FSBO journey.