Should You Offer a Buyer's Agent Commission? The Post-NAR-Settlement Answer for FSBO Sellers

This is one of the first real decisions a FSBO seller has to make, and the rules around it changed more recently than most sellers realize. Here's what actually changed, what it means for you, and how to decide.

What changed in August 2024

On August 17, 2024, new rules took effect nationwide as part of a settlement between the National Association of Realtors and a group of home sellers. Two changes matter most for FSBO sellers:

• The MLS no longer displays buyer-agent compensation offers. The old field where a listing agent would advertise "buyer's agent gets 2.5%" directly on the listing is gone. That compensation is no longer broadcast automatically to every agent browsing the MLS.
• Buyers now sign agreements with their agents before touring homes. These agreements spell out how much the buyer's agent will be paid and by whom, before a single showing happens. Compensation is negotiated explicitly rather than assumed.

The practical effect: paying a buyer's agent commission went from being the near-universal default to being one negotiable piece of the transaction, decided deal by deal.

Do you have to offer it? No.

You are not legally required to offer buyer's agent compensation as a FSBO seller. That field disappearing from the MLS didn't create a new obligation — it removed an old assumption. Some sellers now offer $0 and state plainly that the buyer is responsible for their own agent's fee.

But "not required" isn't the same as "no downside." A meaningful share of buyers — particularly first-time buyers, relocating buyers, and buyers using FHA or VA financing — still work with an agent to find and evaluate homes. If those agents know upfront that a listing offers no compensation, some will deprioritize showing it to their clients, or the buyer will need to cover that fee out of pocket, which can affect what they're willing to offer you.

The real tradeoff: cost vs. buyer traffic

This comes down to simple math on a typical transaction. Buyer-side commissions have historically run in the 2.5–3% range, though they compressed slightly and now vary more by market since the settlement. On a $500,000 home, that's roughly $12,500–$15,000 — real money, and the exact commission a FSBO seller was already saving by not paying a listing agent.

Offering some or all of that commission narrows the gap between "sold FSBO" and "sold with an agent," but it can also widen your buyer pool and speed up your sale. Not offering it maximizes your savings but may mean fewer agent-represented buyers see or seriously consider your listing.

There's no universally correct answer — it depends on your market, your timeline, and how much of the FSBO savings you want to protect versus reinvest in buyer traffic.

Three positions, and when each makes sense

Offer a set commission (e.g. 2–2.5%). Makes sense in competitive markets where most buyers are agent-represented, or when speed matters more than maximizing savings. This is the closest to the old default and removes commission from the list of reasons an agent might steer a client away from your listing.

Stay open to discussing it. A middle ground: you don't commit anything upfront, but you signal you're willing to negotiate it as part of an offer. This preserves flexibility and lets you factor a requested commission into your evaluation of each offer, rather than committing to a number before you have offers in hand.

Offer nothing. Maximizes your savings and makes sense if you expect mostly unrepresented buyers, you're in a strong seller's market, or you're comfortable accepting a narrower buyer pool in exchange for keeping the full FSBO savings.

Set your position before you list, not during a negotiation

Whichever direction you lean, decide it before your listing goes live. Sellers who go in undecided end up negotiating commission for the first time in the middle of an offer, which is a worse position than deciding it calmly in advance with your comps and numbers in front of you.

CounteredAI lets you set your commission stance directly on your listing — offering a set percentage, staying open to discussion, or offering none — and every buyer sees exactly where you stand before they submit an offer. No surprises on either side.

Bottom line

The NAR settlement didn't ban buyer's agent commissions — it made them optional and explicit instead of automatic and hidden in the MLS. Run the math for your specific home and market, pick a position, and put it in writing before you list. That single decision affects both your buyer pool and your final net proceeds more than most sellers expect.