Who pays the buyer's agent in Michigan now?
Michael Allen, Associate Broker
· 2 min read
Short answer
It can be the seller, the buyer, or a mix, and it's all negotiable. Since August 2024, buyers sign a written agreement with their agent before touring homes, and that agreement spells out what the agent will be paid. Sellers can still offer to cover some or all of it, and buyers can ask for that in their offer. Offers of pay just aren't advertised on the MLS anymore.
This one confuses a lot of buyers, and honestly some agents too. Here's what changed and what it means when you're actually out looking.
What changed in 2024
As part of the NAR settlement, two practice changes took effect on August 17, 2024:
- Written agreement before touring. If you're working with an agent, you sign an agreement before you tour a home with them. It has to say what they'll be paid, in a clear amount or rate, and it can't be open ended.
- No compensation offers on the MLS. Listings no longer advertise what the seller will pay a buyer's agent.
The National Association of REALTORS® summary lays it out if you want the official version.
So who actually pays?
In practice, a lot of Metro Detroit sellers still agree to pay some or all of the buyer's agent fee. It helps them attract more buyers. But it's no longer assumed, so there are a few ways it can go:
- The seller pays it, either because they offered it up front or because you asked for it in your offer.
- You ask for a seller concession toward your costs, which can cover it.
- You pay it, or part of it, at closing.
Whatever happens, you should know before you write an offer. A good agent will tell you whether the seller is open to it and how asking might affect your offer.
What to look for in the agreement
- The pay. A specific amount or percentage. Everything is negotiable.
- How long it lasts. Some are for one home or one day of touring, others for a few months.
- What area or homes it covers.
- How to end it if things aren't working out.
If anything in it doesn't make sense, ask. You should never feel rushed to sign it on someone's car hood before a showing.
How we handle it
We go over the agreement before we ever get in the car, explain exactly how we're paid, and talk about what the seller is likely to cover on the homes you're looking at. If you just want to see one house first and decide later, we can do a short touring agreement for that.
Want to start looking? Search homes for sale across Metro Detroit, save the ones you like, and give me a call when you want to see something in person. And if you're figuring out the budget side, here's what to expect for buyer closing costs.
Quick questions
Do I have to sign a buyer agreement to see a house in Michigan?
If you tour with an agent, yes. Since August 17, 2024, agents need a written agreement with you before touring. It can be limited to one home or a short time period.
Can the seller still pay my agent?
Yes. Sellers can offer to pay a buyer's agent, and buyers can ask for it or for a concession in their offer. It just isn't advertised on the MLS.
Are real estate commissions negotiable?
Always. The amount in your buyer agreement is negotiated between you and your agent.
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