Disclaimer: The contents of this article are industry best practices which were sourced from StreetEasy data and interviews with our Agent Advisory Board, unless noted otherwise. Any scripts provided are only meant to act as examples and are not required. Nothing in this presentation is intended to be legal advice. For specific questions about any duties or obligations arising out of a real estate transaction, check your local and state licensing laws and regulations, contact your broker, or an attorney.

Since the NAR settlement, consumers have become more aware of how buyer agent commissions work. With this increased awareness, you may find that buyer clients have more questions or concerns about your fees. As an agent, it’s essential to make sure clients understand how you’re paid, your services, and the value you offer. Here are five tips to help guide that discussion.

1. Establish rapport and confidence

Building a rapport can make the buyer feel comfortable and confident talking to you about commissions. At the beginning of the conversation, consider finding common ground and getting to know them on a personal level, and use this time to let them air their questions and concerns about your fee structure. You may find that addressing their considerations upfront leads to a stronger relationship in the long run.

2. Clearly explain how your fee structure works

Some buyers may not understand the different ways buyer’s agents can get paid, and mistakenly assume sellers always cover your commission. Introducing a buyer’s agreement can be a good opportunity to go over exactly how much your commission is — whether it’s a percentage of the sale, a flat fee, or a retainer — and who pays it. It’s also a good idea to point out any other terms, such as exclusivity.

Your client may have questions, like whether they’ll have to pay your fee if the seller chooses not to. Be prepared to answer all questions clearly and transparently to avoid any misunderstandings.

3. Remind them your fees are negotiable

Despite the rising consumer awareness about agent commissions, buyers may not know that your fees are negotiable. Many agents note this in their buyer’s agreement, but it doesn’t hurt to point it out anyway. That said, it’s up to you whether you want to lower your rate for a valuable deal, or to gain extra experience. And don’t forget that the relationship should make sense for you as well as the client. You can even negotiate your commission to be part of your client’s offer.

Instead of pointing out that part of your fee goes toward your brokerage, marketing, and other business-related expenses, consider reminding the buyer that using an agent can save them time, money, and stress.

4. Highlight the value you bring

Discussing your commission is also a great opportunity to communicate your value as a buyer’s agent. You may want to share your various responsibilities and the expertise you bring to the table, such as:

  • Finding listings that match clients’ exact criteria
  • Experience helping other buyers purchase similar homes in the same neighborhoods or buildings
  • Tapping your extensive network to connect the buyer with mortgage lenders, attorneys, and other real estate professionals they may need
  • Representing their best interests during negotiations with the seller
  • Guiding them step-by-step through NYC’s often complex home-buying process
  • Putting together a competitive offer, and for co-ops, assembling a compelling board package
  • Personal strengths like responsiveness, attention to detail, or negotiation skills

If you’re looking for clients who need your exact expertise, consider joining the StreetEasy® Experts program. Leveraging your knowledge of specific neighborhoods and buildings, we’ll connect you with qualified buyers looking for your particular experience and skill set.

5. Ask follow-up questions

Even after having an in-depth conversation about commissions, you don’t want the buyer to walk away with lingering questions. To avoid this, consider asking follow-up questions at the end of the discussion to make sure everyone is on the same page. You may also want to send them some local market data, comparable reports, or neighborhood guides to further showcase your value and expertise. Let them know you’re available at any point if they have additional questions or concerns. 

Discussing buyer agent commissions with your clients is essential if you want to lay a foundation of clear, upfront communication. By prioritizing honesty and clarity, you’re demonstrating why they can trust you to protect their best interests — and why you’re worth every penny of your fee.

For more help navigating the latest industry standards, visit our resource hub for agents. Additionally, help your buyer clients better understand the NAR settlement’s impact on them by sharing the below video from StreetEasy Home School.

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StreetEasy is an assumed name of Zillow, Inc. which has a real estate brokerage license in all 50 states and D.C. See real estate licenses. StreetEasy Concierge team members are real estate licensees, however they are not your agents or providing real estate brokerage services on your behalf. StreetEasy does not intend to interfere with any agency agreement you may have with a real estate professional or solicit your business if you are already under contract to purchase or sell property.