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

Why Sellers Should Offer a Buyer's Agent Commission

On May 23, 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 our market. 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 ours.

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.

Buyers may try to forgo using a buyer agent thinking they will save money which again could lead to low offers and wasted time. A buyer agent can coach their clients to make strong offers resulting in wins for the seller and buyer. The extra money they are trying to save to pay for their agent can go towards a better offer or help during the negotiation process.


When you remove the extra financial burden on buyers, sellers often get a quicker sale and reduced days on market. The negotiation process is simplified when you take the confusions of commission costs off the table. The focus can be just on the property’s price.

Incentivizing buyers agents encourages more showings, and offers. It shows a seller is more cooperative and can attract more qualified buyers which can all speed up the process. In a slow market, offering a buyer's commission can help your listing stand out.


When a buyer chooses to represent themselves, you are more likely to have transaction issues. The paperwork process, contingencies, inspection reports, appraisals, and title work are complicated. Using an agent makes the process easier. There will be far fewer headaches in the selling process if your agent can work with an experienced buyer's agent to keep everything moving until closing day. Strong communication, negotiation, and problem-solving skills are necessary when selling or buying a home. This is the job of the agents so you don’t have to stress over it. Offering compensation to both agents will make this process smoother, and result in fewer, costly failed sales.

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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