If you have been in real estate for more than a year, you already know that the way we talk about commissions and buyer representation has fundamentally changed. The NAR settlement that took effect in 2024 is now fully embedded in how we do business. Buyer-broker agreements are mandatory before showing a home in Florida and many other states. Commissions are no longer advertised on the MLS. And buyers are asking questions they never asked before.
I have been a REALTOR for over 30 years. I have run my own brokerage. I have navigated every market cycle from the savings and loan crisis to the housing bubble to the pandemic. And I can tell you this: the agents who thrive in this new environment are the ones who have learned to lead with confidence, transparency, and a clear articulation of their value.
The agents who are struggling? They are the ones hoping the conversation will not come up, relying on scripts their broker gave them without making them their own, and treating the buyer-broker agreement like a legal hurdle instead of a tool to build trust.
This guide gives you the exact scripts, frameworks, and negotiation strategies you need to handle every commission and buyer-agency conversation with confidence. Practice them. Make them your own. And watch how the dynamic shifts when you stop defending your fee and start demonstrating your value.
Why the Old Way of Talking About Commissions No Longer Works
Before the NAR settlement, most agents never had a direct conversation with buyers about compensation. The seller offered a commission on the MLS, the buyer's agent got paid at closing, and the buyer never had to think about it. It was convenient, but it was also opaque. And that opacity created trust problems.
Today, the MLS no longer displays buyer-agent compensation. Sellers can still offer to pay the buyer's agent (and most still do, especially in the sub-$500,000 market where average buyer-agent commissions hover around 2.52%), but the conversation has to happen up front. You and the buyer agree on your compensation in the buyer-broker agreement. Then you negotiate how that gets paid from the seller's side, from the buyer directly, or from a combination of both.
This is actually a better system for everyone. When you have the compensation conversation before you start working with a buyer, you eliminate the awkwardness of discussing fees after they have already fallen in love with a home. You set expectations. You build trust. And you signal that you are a professional who values transparency.
But it requires a new skill set. Here is exactly how to handle it.
How Do You Bring Up the Buyer-Broker Agreement Without Making It Awkward?
The most common question I get in my coaching calls is: "How do I get a buyer to sign a buyer-broker agreement without scaring them off?" The answer is: you frame it as a professional standard, not a trap.
The key is to introduce the agreement early, before the buyer has any emotional investment in a specific property. Here is the exact script I use and teach:
The Buyer-Broker Agreement Introduction Script
"Before we start looking at homes, I want to walk you through something that is now a standard part of how real estate works. As of this year, Florida requires a written buyer-broker agreement before an agent can show you properties. This is not something I created. It is the new professional standard, and it protects both of us.
"Think of it like a doctor asking you to fill out forms before an appointment. The paperwork is not the point. The point is that we are on the same page about how we will work together, what you can expect from me, and how I get paid. I want you to feel confident that I am working in your best interest every step of the way. So let us walk through this together."
Notice what this script does. It normalizes the agreement. It takes the blame off you by referencing the legal requirement. It reframes the paperwork as a protection for the buyer. And it invites the buyer into a collaborative conversation rather than a transaction.
Practice this introduction until it feels natural. Your tone matters more than your words. If you sound apologetic or nervous, the buyer will feel suspicious. If you sound confident and matter-of-fact, the buyer will see it as the professional standard it is.
How to Negotiate Your Commission When a Buyer Questions Your Fee
This is where the real negotiation happens. A buyer reads your commission on the buyer-broker agreement and asks: "Why do I have to pay 2.5%? Can you lower it?"
Do not get defensive. A buyer who questions your fee is not a problem. They are doing exactly what any smart consumer should do. Your job is to answer the question with confidence and clarity. Here is the framework I use:
The Commission Conversation Framework
- 1. Validate "That is a fair question. You should understand exactly what you are paying for." Validation disarms defensiveness. It tells the buyer that their question is reasonable and that you are not hiding anything.
- 2. Educate "Let me walk you through what goes into that fee. It covers everything from finding and vetting properties, scheduling and attending showings, analyzing comps to help you determine the right offer price, negotiating the contract and inspection repairs, coordinating with the lender and title company, and guiding you through to closing. On average, my clients spend about 60 hours with me from first meeting to closing day."
- 3. Clarify "Here is the thing. In most cases, the seller's side covers this fee as part of the transaction. So even though we are agreeing on it here, it typically gets paid from the proceeds of the sale rather than coming out of your pocket. Let me show you how that works."
- 4. Contract "This agreement also protects you. It ensures I am legally obligated to represent your best interests in every negotiation. Without it, I would legally have to treat you the same as any other customer. With it, I am your advocate, bound by fiduciary duty."
What Do You Say When a Buyer Asks: "Can I Just Work with the Listing Agent?"
You will hear this more often now that buyers have to sign agreements and think about compensation before touring. Here is how I handle it:
"You can absolutely work with the listing agent. But here is what you need to know. The listing agent's legal responsibility is to the seller, not to you. They are required to get the highest price and the best terms for the seller. If you tell them your budget, your timeline, or what you love about the home, they are obligated to share that with the seller.
"I cannot tell you how many times I have seen buyers think they were saving money by going direct, only to end up paying more than they needed to because they did not have their own representation in the negotiation. Having your own agent costs you nothing in most cases, and it saves you money and stress in every case where the market gets competitive."
How to Negotiate with Sellers When They Push Back on Buyer-Agent Compensation
Now let us talk about the other side of the negotiation. You have a buyer under agreement. You submit an offer that includes a request for the seller to pay your commission. The seller's agent comes back and says the seller does not want to pay buyer-agent fees anymore.
Here is the reality. According to market data from 2026, the vast majority of sellers still offer buyer-agent compensation because they know it keeps their home competitive. Homes that do not offer buyer-agent compensation sit on the market 18 to 25 days longer on average. But you will still encounter sellers who want to try the new system without offering anything.
When that happens, you have options:
Negotiating Buyer Compensation from the Seller Side
- Option 1: Negotiate it into the offer. Your buyer can include the compensation request as part of their offer. If the home has been on the market for more than a few weeks, the seller is often willing to concede on this point to keep the deal together.
- Option 2: Adjust the offer price. If the seller will not pay buyer-agent comp directly, ask if they would accept a slightly lower offer price that accounts for it. The economics work out the same either way, and this gives the seller a way to say yes without feeling like they are paying a fee.
- Option 3: Have the buyer pay directly. If the seller will not negotiate, your buyer has already agreed to your fee in the buyer-broker agreement. They may need to bring additional cash to closing or finance the fee into their mortgage. This is why having the conversation upfront is so important. Nobody is surprised.
How to Demonstrate Your Value So the Conversation Never Feels Awkward
The best negotiation strategy is to make the fee conversation feel inevitable, not confrontational. When a buyer understands the full scope of what you do before they ever see the fee on paper, the number feels reasonable rather than shocking.
Here is what I recommend every agent do before they bring the buyer-broker agreement out:
- Spend 15 minutes on the consultation. Walk the buyer through your full process. Show them what a typical transaction timeline looks like. Explain how you handle multiple offers, inspection negotiations, and appraisal challenges. The more they understand about the process, the more they value your expertise.
- Share your stats. How many transactions have you closed this year? What is your average list-to-sale price ratio? How many buyers have you helped in their target neighborhood? Data builds credibility.
- Share testimonials. Have a few recent client reviews ready to share. Hearing how other buyers benefited from your representation is more powerful than anything you can say about yourself.
- Be specific about what you do. Do not say "I help buyers find homes." Say "I will research every property that matches your criteria, schedule showings within 24 hours, provide a detailed comparables analysis for every home you are serious about, and negotiate every inspection issue line by line." Specificity builds trust.
A Note on the Numbers: What Real Commissions Look Like in 2026
Let me share some actual market data so you know what is realistic when you sit down at the negotiation table. As of mid-2026, national average buyer-agent commissions have stabilized around 2.4 to 2.5%. Total commissions (buyer side plus seller side) are running about 0.4 to 0.7% lower than pre-settlement levels. That is not a dramatic drop, and it confirms what I have been telling agents in coaching sessions: the market has adjusted, fees have not collapsed, and agents who know how to articulate their value are still earning strong commissions.
The key takeaway is this: the agents who are losing money on commissions are not being undercut by the market. They are being undercut by their own discomfort with the conversation. They are discounting before being asked. They are waiving fees to avoid awkward conversations. And they are training buyers to expect discounts.
Do not be that agent. Hold your value. Have the conversation with confidence. And if you need help refining your scripts and practicing your delivery, that is exactly what I help agents with every day.
The Script That Ties It All Together: Your Commission Conversation Cheat Sheet
The Complete Commission Conversation Script
You: "Before we start looking at homes, I want to walk you through my buyer services agreement. This is a standard document that outlines how we will work together."
Buyer: "What about the fee?"
You: "Great question. My fee is 2.5% of the purchase price. Here is what that covers: I will research every property that meets your criteria, schedule and accompany you on showings, prepare a detailed market analysis for every home you are serious about, negotiate the contract and any inspection issues, coordinate with the lender and title company, and stay with you every step of the way through closing. Most buyers I work with spend about 60 hours with me from start to finish."
Buyer: "Is that something we pay out of pocket?"
You: "In most cases, no. The fee is typically paid from the seller's proceeds as part of the transaction. I structure offers to request seller-paid compensation. If the seller agrees, it comes out of the sale, not your pocket. If they do not, we talk through the options before you ever make an offer. Either way, you will never be surprised."
Buyer: "OK, that makes sense."
You: "Good. Let us sign this so I can start working for you. And then let us go find you a home."
Your Negotiation Mindset: Lead with Service, Not Fear
I have been doing this long enough to know that the agents who succeed in this new environment are not the ones with the lowest fees. They are not the ones with the fanciest buyer-broker agreement presentation. They are the ones who genuinely believe in the value they provide and communicate that value with confidence.
If you approach the commission conversation with fear, your buyer will sense it. If you approach it with genuine service, your buyer will respect it. And if you handle it with transparency and grace, you will build the kind of trust that turns a one-time buyer into a lifetime client who refers everyone they know.
Practice these scripts. Adapt them to your voice. And if you want to work through them with someone who has been navigating real estate negotiations through every market cycle since the 1990s, let us talk. That is exactly what I do.
Ready to Master Your Negotiation Skills?
Book a free strategy call with Kim Donahue and get personalized coaching on handling buyer-broker agreements, commission conversations, and every negotiation in your real estate business.
Book Your Free Strategy CallFrequently Asked Questions
Do I really need a signed buyer-broker agreement before showing a home?
Yes. In Florida and many other states, a written buyer-broker agreement is now legally required before you can show a property to a buyer. Even in states without a specific mandate, the NAR settlement terms require it for any agent working under a NAR-affiliated MLS. This is not optional. It is the new professional standard. Treating it as a compliance requirement rather than a trust-building tool is the difference between agents who struggle with it and agents who use it to their advantage.
What if a buyer refuses to sign a buyer-broker agreement?
First, find out why. If they misunderstand the purpose of the agreement, explain it again with the script above. If they are worried about being locked in, offer a shorter term like 30 days or a property-specific agreement. If they still refuse, you have a choice to make. You can walk away and preserve your time for serious clients, or you can show them the home as a customer (without fiduciary representation) and use the experience to demonstrate your value. I always recommend the first option -- your time is too valuable to invest in buyers who are not ready to commit.
Should I ever lower my commission to win a client?
Rarely. When you discount your commission, you are telling the buyer that your services are not worth what you normally charge. You are training them to expect discounts. Instead of lowering your fee, offer to unbundle services. If they do not need you to drive them to every showing, perhaps you agree on a reduced scope of work with a corresponding fee. But do not discount just because a buyer asks. Negotiate scope, not rate.
How do I handle it when a listing agent pressures me to disclose my buyer's compensation terms?
This comes up frequently now that commissions are not on the MLS. Some listing agents will ask about your buyer's compensation arrangement before deciding whether to present your offer. You are not obligated to disclose this information, and I recommend you do not. Instead, focus on the strength of your offer. If the listing agent insists, remind them that compensation is a matter between you and your client, just as it is between them and their seller. Keep the focus on the terms of the offer, not the fee structure.
Written by Kim Donahue
Kim Donahue is a REALTOR(R) with Medway Realty and a coach with 30+ years of experience across real estate, mortgage, and business ownership. She specializes in helping agents leverage AI, marketing, and modern strategies to build stronger businesses.
Learn more about Kim