Do Sellers Pay the Buyer’s Agent Commission? What Changed in 2024

If you’re buying or selling a home, you’ve likely heard that real estate commissions have recently changed. This has led to a lot of confusion, especially around who pays the buyer’s agent. The reality is simpler than it sounds: while the rules have shifted, how commissions are handled is now more flexible and depends on how each individual deal is structured.

What Changed (The “New Law”)

It’s not actually a law, it’s the result of the 2024 National Association of Realtors (NAR) settlement.

The biggest changes:

• Sellers are no longer required to pay the buyer’s agent commission

• Buyers must now sign an agreement with their agent outlining how they’ll be paid

• Commissions can no longer be advertised in the MLS

So Who Pays the Buyer’s Agent Now?

The new reality:

• The buyer is technically responsible for their agent’s compensation

• However, everything is negotiable

What Actually Happens in Real Life

Even though the rules have changed:

• Sellers can still choose to pay the buyer’s agent

• Many sellers still offer compensation to attract more buyers

• Compensation is now negotiated within the contract, rather than being pre-set in the MLS

In many transactions, the structure may still look similar to before, just with more transparency and flexibility.

Simple Breakdown

Previous System:

• Seller typically paid both agents (often around 5–6% total)

Current System:

• Buyer hires their agent and agrees on compensation

• Seller may or may not contribute toward that compensation

• All terms are fully negotiable on a case-by-case basis

Bottom Line

• Sellers are not required to pay buyer’s agent commissions

• It is still very common for sellers to offer compensation

• All commission structures are now fully negotiable

This shift has created a more transparent and flexible system, allowing buyers and sellers to structure deals in a way that works best for their specific situation.

John Musso

5025 Bluebonnet Boulevard, Baton Rouge, LA 70809

(225) 939-8648

MOVE WITH MUSSO

An appraisal in Baton Rouge looks at what similar homes nearby have sold for, plus your home’s condition, features, and updates. Anything that makes your home look poorly maintained or less desirable than similar properties can drag value down.

Common appraisal killers include:

• Deferred maintenance
  Obvious issues like peeling paint, rotten wood, roof leaks, damaged siding, old carpet with stains, or visible cracks can signal bigger problems. Appraisers don’t do full inspections, but they notice what a typical buyer will worry about.

• Safety and major system concerns
  Electrical issues, clear plumbing problems, roof in poor visible condition, or signs of foundation movement can all prompt a lower value or extra lender conditions. In Louisiana’s climate, moisture issues and visible mold are especially concerning.

• Unpermitted or low‑quality additions
  Enclosed garages, added rooms, or patio covers done without permits or with poor workmanship may not be fully counted in value. They can even hurt the overall impression of the house.

• Curb appeal and exterior condition
  Overgrown yards, broken fences, clutter on porches, and dirty exteriors make the home feel neglected. In a subdivision where neighbors keep things neat, this really stands out.

Before an appraisal, sellers in Baton Rouge should focus on basic repairs, a clean and decluttered interior, tidy landscaping, and addressing any obvious roof or system issues that could scare a lender.

John Musso

5025 Bluebonnet Boulevard, Baton Rouge, LA 70809

(225) 939-8648

MOVE WITH MUSSO

Closing costs in Louisiana are typically in the low single‑digit percentage range of the purchase price, often around 2.5%-5.5% of the homes purchase price for many buyers and 6%-10% for many sellers, depending on the loan type and price point. Actual numbers vary with lender fees, title company charges, taxes, and insurance, so they need to be locally verified for each transaction.

For example, on a $300,000 home in the Baton Rouge area, total closing costs for a buyer might often land somewhere around the 12 thousand dollar range, not including the down payment. Sellers would land somewhere around the 24 thousand dollar range.

Buyers usually see costs like:

• Loan origination and lender fees.

• Appraisal, credit report, and survey fees.

• Title search, title insurance, and attorney/title company fees.

• Prepaid property taxes, homeowners insurance, and interest.

Sellers usually pay:

• Real estate commission (if agreed in the listing).

• Their portion of title and attorney fees (depending on how it’s split).

• Any agreed credits toward buyer costs.

Because amounts shift with lender, title company, and parish requirements, Baton Rouge buyers and sellers should always ask for a detailed closing estimate from their lender and title company early in the process and confirm exact figures before closing.

John Musso

5025 Bluebonnet Boulevard, Baton Rouge, LA 70809

(225) 939-8648

MOVE WITH MUSSO