The NAR settlement changed the rules in August 2024. Here is exactly what that means for Massachusetts buyers and sellers — and what you can negotiate.
In August 2024, the National Association of Realtors implemented new rules following a landmark antitrust settlement. The core change: sellers are no longer required to offer compensation to a buyer's agent through the MLS listing.
Before the settlement, a seller would typically offer 2.5–3% to any buyer's agent who brought them an accepted offer. This compensation appeared in the MLS and was essentially automatic. Now, buyer's agent compensation must be negotiated separately.
This does not mean buyers are always stuck paying their agent out of pocket. Most Massachusetts sellers continue to offer buyer's agent compensation as a seller concession to attract more competitive offers — but it is now a negotiated term, not a standard one.
| Home Price | Listing Agent (2.5%) | Buyer's Agent (2.5%) | Total (5%) |
|---|---|---|---|
| $400,000 | $10,000 | $10,000 | $20,000 |
| $600,000 | $15,000 | $15,000 | $30,000 |
| $800,000 | $20,000 | $20,000 | $40,000 |
| $1,200,000 | $30,000 | $30,000 | $60,000 |
As of August 2024, Massachusetts buyers must sign a buyer agency agreement before an agent can show them any homes. This is now state law, not just industry practice.
The agreement covers: the agent's compensation rate, the duration of the relationship, and the geographic area covered. You are not locked in forever — most agreements run 30–90 days and can often be terminated if you are unsatisfied.
Before you sign, read it carefully. Make sure the fee is clearly stated (flat fee or percentage), the duration is reasonable, and there is a clear exit clause if the relationship is not working.
In Massachusetts, total real estate commissions average 5–5.5% of the sale price, typically split between the listing agent and buyer's agent. For a $600,000 home, that is roughly $30,000–$33,000.
After August 2024, buyers must sign a written buyer agency agreement before touring homes. The buyer's agent fee can be negotiated, and sellers may offer to cover it as a concession — but it is no longer automatic.
Yes. Agent commissions have always been negotiable in Massachusetts. The NAR settlement made this more explicit. Listing agents typically charge 2.5–3%, and buyer's agent fees are now separately negotiated.
As of August 2024, buyers are required to sign a written buyer agency agreement before an agent can show them homes. This agreement specifies the buyer's agent's compensation and the duration of the relationship.
Our agents understand the post-settlement landscape and will explain all fee structures before you sign anything.
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