If you have been following real estate news over the past couple of years, you have probably heard about changes to how real estate agents are compensated — particularly buyer's agents. The National Association of Realtors (NAR) settlement, which took effect in August 2024, introduced significant reforms to how buyer agent commissions work, how they are disclosed, and who pays them. If you are buying a home in 2026, understanding these changes is essential. Here is a straightforward breakdown of what changed, what it means for you, and why having a skilled buyer's agent still matters.

What Changed with the NAR Settlement?

Before August 2024, the standard practice in most real estate markets was for the seller to offer a compensation amount to the buyer's agent through the Multiple Listing Service (MLS). This meant that buyers generally did not pay their agent's commission directly — it was built into the transaction, typically split between the listing broker and the buyer's broker. While this system was convenient, it lacked transparency about what buyers were actually paying for and how much.

The NAR settlement changed two key things:

No more MLS compensation offers. Sellers and their listing agents can no longer advertise buyer agent compensation through the MLS. This removed the industry-wide default that previously standardized how commissions were communicated.
Written buyer agreements are now required. Before a buyer's agent can show you homes — including attending open houses or scheduling private showings — you must have a written agreement that clearly states how your agent will be compensated. This ensures full transparency about costs before you commit to working together.

These are meaningful changes. They bring clarity to a process that was previously opaque, and they put the buyer in a more informed position when it comes to representation costs.

Who Pays the Buyer's Agent Now?

This is the question I hear most often, and the answer is: it depends on how the transaction is structured. There are several ways buyer's agent compensation can be handled in 2026:

1. The Seller Offers Concessions

Many sellers still choose to offer concessions toward the buyer's agent compensation as part of the deal. This is common, especially in competitive markets where sellers want to attract the broadest pool of qualified buyers. If a seller is offering concessions, those funds can be applied to cover some or all of the buyer's agent fee.

2. The Buyer Pays Directly

In some situations, the buyer may pay their agent's compensation out of pocket. This can happen when a seller is not offering concessions, or when the buyer's agent fee exceeds whatever the seller has agreed to cover. Your written buyer agreement will spell out exactly what your obligation is in this scenario.

3. Negotiated as Part of the Purchase Contract

In many transactions, the buyer's agent compensation is negotiated as part of the overall purchase offer. As your agent, I can structure the offer to request that the seller cover the buyer's agent fee — or negotiate a shared arrangement. This is a common approach, and it is one of the reasons having an experienced agent matters more than ever.

4. A Combination of the Above

Most transactions in practice involve some combination of these approaches. The key point is that there is no single "default" anymore — everything is negotiable, and the terms are spelled out clearly in writing before you start shopping for homes.

What Should Buyers Know About Representation Costs?

Here are the practical essentials for anyone buying a home in Mid-Michigan in 2026:

Compensation is always negotiable. There is no fixed commission rate. Your buyer agreement will specify the compensation structure — whether it is a percentage of the purchase price, a flat fee, or another arrangement. I will walk you through every option before we sign anything.
The total cost is typically modest relative to the transaction. Buyer's agent compensation in Michigan generally ranges from 2% to 3% of the purchase price, though this varies by market and transaction. On a $300,000 home, that is roughly $6,000 to $9,000 — an amount that is often covered by seller concessions or negotiated into the purchase price.
Your agreement will have a clear term. Buyer agreements specify a time period — often 90 days to six months — so you are never locked into an indefinite arrangement. If the relationship is not working, the agreement has a defined end point.
You are not required to pay if the seller covers it. Many transactions still result in the seller paying the buyer's agent compensation through concessions. In those cases, you have professional representation at no direct out-of-pocket cost to you.

Why Having a Buyer's Agent Still Matters

Some buyers hear about these changes and wonder whether they can save money by going without an agent — or working directly with the listing agent. Here is my honest perspective after 20+ years in real estate: buyer's agent compensation is negotiable, but buyer's agent value is not.

Here is what a skilled buyer's agent brings to the table:

Local market expertise. Understanding neighborhood-level pricing, school district boundaries, zoning, pending developments, and market trends that do not show up in online listings. My local market knowledge guide explains why this matters.
Negotiation skill. A good agent negotiates not just price, but contingencies, repair credits, closing timelines, and seller concessions that can save you thousands. I break down my approach in my negotiation tips article.
Transaction management. From offer to closing, there are dozens of deadlines, inspections, appraisals, and legal documents to manage. Missing one can cost you the deal or expose you to unnecessary risk. My closing guide covers the full process.
Objective guidance. When you work with the listing agent, that agent's primary fiduciary duty is to the seller. A buyer's agent works exclusively for you — protecting your interests, pointing out red flags, and ensuring you make an informed decision.
Access to professional networks. Lenders, inspectors, appraisers, title companies, contractors — I connect you with trusted professionals who will treat your transaction with the same care I do.

The bottom line: the way agents are compensated has changed, but the reason agents exist has not. Real estate transactions are complex, high-stakes, and deeply personal. Having a knowledgeable advocate in your corner — someone who works for you, not the seller — is worth every penny.

A Practical Example

Let me illustrate with a real-world scenario. A buyer I recently worked with was purchasing a home listed at $285,000 in Genesee County. The seller was not offering buyer agent concessions upfront. Through my buyer agreement, the compensation was clearly defined. I negotiated the purchase offer to include a request for the seller to cover the buyer's agent fee as part of the deal — and the seller accepted. My buyer got full professional representation, and the compensation was handled through the transaction. No surprises, no out-of-pocket costs, and a smooth path to closing.

That is how this process works in practice. Transparency upfront, skilled negotiation during the transaction, and clear communication every step of the way.

Let's Talk About Your Buying Process

If you are planning to buy a home in Mid-Michigan, I would love to walk you through exactly how representation works under the current guidelines — before you sign anything or start touring homes. No pressure, no obligation, just clear information so you can make the best decision for your situation.

Schedule a consultation, call me at 810-513-3335, or email joyce@midmichiganliving.com. I am here to help you buy with confidence — and full transparency.

Understanding Buyer's Agent Compensation in 2026