How buyer agent commission works in Massachusetts
What the 2024 rule changes mean for you, who actually pays, and what to look for in a buyer agreement.
Since August 17, 2024, you sign a written agreement with your buyer agent before touring homes, and it states exactly how they are paid. You are responsible for that amount, but you can ask the seller to cover some or all of it in your offer. Nothing about the amount is standard or fixed by law. It is negotiable.
What changed in 2024
After the Sitzer/Burnett verdict in October 2023 and the settlement that followed, the National Association of REALTORS changed two rules effective August 17, 2024:
- No compensation offers on the MLS. Listings no longer show what, if anything, the seller will pay a buyer's agent.
- Written agreements before touring. An agent who is a REALTOR must have a signed agreement with you before you tour a home together, in person or by live video. It must state the agent's pay as a specific amount or rate.
Who pays now
Your buyer agreement makes you responsible for your agent's pay. That does not mean you will always pay it out of pocket. You can:
- Ask the seller to pay your agent directly as a term of your offer.
- Ask for a seller credit at closing that covers it, within your loan's limits on seller contributions.
- Pay it yourself, or any combination.
Some sellers decide in advance to offer something toward a buyer agent. Your agent can ask the listing agent. Either way, the amount your agent receives is capped by your agreement.
What to look for in a buyer agreement
- The pay. A specific figure: a percentage, a flat fee, or another fixed amount.
- The term. How long it lasts. Shorter terms are fine to ask for.
- The services. What the agent will do: search, tours, comparable sales, offer strategy, negotiation, and coordination through closing.
- How to end it. The conditions for cancelling, and whether any fee is owed on a home you found during the term.
- Exclusive or not. Whether you can work with other agents at the same time.
Massachusetts specifics
Massachusetts has its own disclosure on top of the national rules. At the first personal meeting about a specific property, the agent must give you the Mandatory Licensee-Consumer Relationship Disclosure. It tells you whether the agent represents you, the seller, or neither, and explains dual agency and designated agency. Dual agency, where one agent or company represents both sides, requires your informed written consent.
Do you need a buyer agent?
No. You can buy without one. What a buyer agent should give you is pricing judgment, a negotiator on your side, and someone managing the deadlines between offer and closing. Ask any agent you interview to explain exactly what you get for the fee. If the answer is vague, keep interviewing.
Sources
- National Association of REALTORS: Consumer guides to written buyer agreements
- 254 CMR 3.00(13): Massachusetts Mandatory Licensee-Consumer Relationship Disclosure
Questions this page answers
Who pays the buyer's agent in Massachusetts?
The buyer is responsible under the written buyer agreement. In practice, the buyer can ask the seller to pay some or all of it, either directly or as a credit, as part of the offer. Many sellers still agree to it. It is negotiated deal by deal.
Is there a standard buyer agent commission in Massachusetts?
No. Commissions are not set by law or by any association. The amount is whatever you and your agent agree on in writing, and it must be a specific figure, such as a percentage or flat fee, not a range.
What changed on August 17, 2024?
Under the National Association of REALTORS settlement, offers of compensation to buyer agents can no longer appear on the MLS, and agents who are REALTORS must have a written agreement with a buyer before touring homes together.
Can I negotiate my buyer agreement?
Yes. You can negotiate the pay, the length of the agreement, the services, and how it can be ended. Do not sign one with terms you do not understand or agree with.
Do I need a buyer agreement to go to an open house?
No. Visiting an open house on your own, or asking an agent about their services, does not require a written agreement.
What disclosure will I get from an agent in Massachusetts?
Massachusetts requires agents to give you a Mandatory Licensee-Consumer Relationship Disclosure at the first personal meeting about a specific property. It explains whether the agent represents you, the seller, or neither.