Buyer Broker Compensation Calculator

Under the 2024 NAR settlement, buyers directly negotiate their agent's pay — compare concessions vs cash.

Purchase price

Buyer agent fee %

Seller concession toward comm %

Loan %

Buyer out-of-pocket

$2,750

Total buyer-agent commission

$13,750

Seller coverage

$11,000

How the math works

Commission = price × fee. Seller coverage = price × concession. Out-of-pocket = shortfall.

$550k × 2.5% = $13,750. Seller covers $550k × 2% = $11,000. Buyer writes $2,750 check.

How to Use

Enter purchase price.
Enter negotiated buyer agent fee %.
Enter seller concession toward buyer commission %.
Enter buyer loan %.
Read out-of-pocket cost and financed portion.

Frequently Asked Questions

What changed August 2024?

The NAR settlement ended the MLS-published buyer-broker offer of compensation. Buyers now sign a written buyer-representation agreement with their agent spelling out the fee before touring, and sellers are no longer required to offer compensation through the MLS. Buyer commission becomes a negotiated line between buyer and agent — often covered by seller concession, sometimes paid directly by buyer.

Can buyers finance the commission?

Indirectly. If seller offers a concession that covers the commission, the concession sits in the loan as a credit and is effectively financed. If buyer pays commission out of pocket at closing, it cannot be financed under Fannie/Freddie/FHA guidelines. Result: buyers without cash reserves strongly prefer to negotiate the concession rather than write a check.

Typical rates post-settlement?

2.5-3% remains common in most markets but more visible pressure. Some markets: flat fee $3-6k. Some transactions: 1-2% for high-price homes. Veteran buyer reps: holding 2.5-3%. New agents and discount brokers: 1-2%. Variance widened — buyer shops commission now the way they'd shop a mortgage rate.

Does the seller still pay?

Often yes, via concession — but it's no longer baked into listing agreement automatically. Listing agent may offer 0%, 2%, or 3% at the seller's discretion. Buyer's agent must disclose the offered amount to buyer before writing an offer and negotiate the gap if any. In hot markets, sellers cut concessions; in cold markets, sellers still cover full buyer commission to attract offers.