Why Sellers Should Offer a Buyer Agent Commission - Bozeman Real Estate Group
Why Sellers Should Offer a Buyer Agent Commission

Why Sellers Should Offer a Buyer Agent Commission

On May 09, 2024

Due to the recent NAR settlement, how real estate commissions are handled will change in August 2024. For decades listing commissions have averaged between 5-6%, split between buyer and seller agents. Now agents cannot advertise an offer of compensation to buyer agents on MLS. This agreement does not bar seller agents from paying a buyer agent a commission or advertising it on other platforms. Here are a few reasons why sellers should still offer a buyer agent commission when listing their home. 


Housing is already expensive. Especially in Bozeman. Many buyers will not be able to come up with the cash to pay for a buyer’s agent. This will limit the buyer pool of people looking at your home. Particularly if you are in the price range for first-time home buyers. By offering to cover the buyer’s agent commission your property automatically becomes more attractive to more people because it’s one less expense the buyers have to incur. This is even more advantageous in a competitive market like Bozeman.

At this point, there are no options to finance agent commissions. Buyers will have to come up with the extra expense and many will not be able to do this and it will take them out of the market.


Sellers are likely to have to accept a lower price if the buyer has to pay their agent. If a buyer knows they don’t have to pay for commission they may be more willing to offer a higher purchase price and have more room for negotiation.

Some people will forgo using a buyer agent to save money which, again could lead to offering a lower price to the seller. A buyer agent can coach their clients to make a strong offer which is usually a win for the seller. The extra money they are trying to save to pay for their agent can go towards a stronger offer or help during the negotiation process.


When you eliminate the additional financial burden on the buyers, it can lead to quicker sales and reduced time on the market for the sellers. By removing the commission costs from the negotiation process, it simplifies the process and makes it solely about the property's price.

Offering incentives to the buyer's agents can encourage more showings and offers. This shows that the seller is more motivated and cooperative, which can attract more qualified buyers and speed up the process. In a slow market, providing a buyer's commission can help your listing stand out.


If a buyer decides to represent themselves, they may encounter transaction issues. The process of handling paperwork, contingencies, inspection reports, and so on can be quite complicated, which is why it's easier to use an agent. If your agent is able to work with an experienced buyer's agent, it will be much smoother and less stressful to sell your property. The agent's job is to handle communication, negotiation, and problem-solving, so you don't have to worry about it. Providing compensation to both agents will help make the process smoother.

Sellers have always been able to choose how to compensate agents and have historically chosen to pay these commissions because they recognize it is the best way to get the highest price and best terms for the sale of their home. This has been industry practice so choosing not to offer a buyer agent commission could put your property at a disadvantage compared to those that do.

If you have been thinking of selling your home, click here to get more information. 


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