Everything You Need To Know About Buyer Agent Commission Before You Sign

If you're planning to buy a home in Pennsylvania, you've probably heard something about buyer agent commission changes or the recent NAR settlement. But between the confusing headlines and real estate industry jargon, it's hard to know what actually changed and what it means for your wallet.

As a Grove City real estate agent who has been working with buyers through these changes since they took effect on August 17, 2024, I want to provide you with the straight truth about buyer agent commissions and what they mean for your home buying experience.

Yes, that was almost a year ago now, but it's home-buying season in Pennsylvania, so it's worth getting a little refresher course before you step into the home-buying adventure yourself.

The bottom line? Most of what you've heard about real estate agent fees is probably more dramatic than reality. But there are some critical changes that every Pennsylvania buyer should understand about agent commission before they start house hunting.

Let me break down exactly what changed about buyer's agent fee structures, what stayed the same, and how to navigate these new real estate agent commission rules to your advantage.

What Actually Changed with Buyer Agent Commission

If you're looking for answers related to anything Realtor, it's always best to start at the source... NAR. Here's what the National Association of Realtors' settlement actually requires for real estate agent fees, in plain English:

Change #1: No More Agent Commission Information on MLS

Before August 2024, when real estate agents listed a home for sale, they could advertise how much they'd pay the buyer's agent on the Multiple Listing Service (MLS). Now that buyer agent compensation information can't be displayed publicly on MLS platforms.

What this means for you: Nothing changes about who pays real estate agent commissions or how much agent fees are. It just means that information isn't automatically visible to every real estate agent browsing listings.

Change #2: Mandatory Written Buyer Agreements

The biggest change you'll notice is that real estate agents must now have a written agreement with buyers before showing homes. Previously, many agents worked with buyers on handshake agreements.

What this means for you: Before I can take you to see houses, we'll need to sign a buyer agency agreement that spells out exactly what services I'll provide as your real estate agent and how buyer agent commission will be handled.

Change #3: Real Estate Agent Commission Transparency Requirements

The written agreement must include specific disclosure about buyer agent compensation, including a statement that "real estate agent fees and commissions are fully negotiable and not set by law."

What this means for you: You'll have clear, upfront information about all real estate fees before we start working together.

What Didn't Change About Buyer Agent Commission (Despite What You Might Have Heard)

Let me clear up some misconceptions I frequently hear from Pennsylvania buyers about real estate agent fees, based on my experience as a realtor in Grove City and the surrounding areas.

Here are some of the most common myths and the truth about them:

Myth: "Buyers Now Have to Pay Their Own Agent"

Reality: Most home sellers are still choosing to pay the buyer's agent commission. According to recent data from Redfin, the average buyer's agent fee was 2.4% for homes sold in Q1 2025, and most of those real estate agent commissions were still paid by the seller.

Myth: "Agent Fees Are Going Way Down"

Reality: Real estate agent commission rates haven't changed dramatically. The data shows buyer's agent commission has remained relatively stable since the NAR settlement changes took effect.

Myth: "You Can't Negotiate Agent Commission"

Reality: Real estate agent fees were always negotiable. The recent NAR settlement simply requires agents to inform you of this explicitly.

How Buyer Agent Commission Actually Works in Practice

Here's what happens when you want to buy a home in Grove City or anywhere in Pennsylvania:

Step 1: We Sign a Buyer Agency Agreement

Before we look at any homes, we'll discuss and sign a written agreement. This will specify:

• What services I'll provide as your buyer's agent

• How much the buyer agent commission will be

• Who's expected to pay the buyer's agent fee

• What happens if a seller won't pay buyer agent compensation

Step 2: We Discuss Agent Commission Strategy

Since buyer agent commission offers are no longer listed on the MLS, I'll reach out to the listing agent to determine if home sellers are offering to pay the buyer's agent. This happens behind the scenes—you won't need to worry about it.

Step 3: We Structure Your Offers Accordingly

If a seller isn't offering to pay buyer agent fees, we have options:

• Ask the seller to pay the buyer's agent fee as part of your offer

• Request seller concessions to cover closing costs and agent fees

• You pay the buyer agent commission directly (less common)

• Find homes where sellers are covering buyer agent compensation

Since the NAR settlement, both buyers and home sellers have greater transparency regarding real estate agent commissions, which enables them to make more informed decisions.

What Pennsylvania Home Buyers Need to Know About Agent Fees Right Now

Based on my experience as a Grove City real estate agent working with buyers since these changes took effect, here's what's actually happening in our local real estate market:

Most Home Sellers Are Still Paying Buyer Agent Commission

According to real estate agents across the country, most home sellers are choosing to pay buyer's agent fees, though some are offering 2% instead of the traditional 2.5-3% of the home's sale price.

In Grove City specifically, I'm seeing about 85% of sellers still offer to pay buyer agent compensation. The ones who don't are usually testing the market or working with a discount agent.

Buyer Agreements Aren't Scary

The required buyer agency agreement actually protects more buyers than the old handshake system. You'll know exactly what services you're getting from your real estate agent and what agent commission costs before we start working together.

Many states already require written buyer agreements, so this isn't new everywhere in the real estate industry.

First-Time Buyers Have More Negotiating Power

Since everything is more transparent now with real estate agent fees, you can negotiate agent commission rates more easily. If you're buying a house at a higher price, you might consider negotiating a lower percentage. If you're buying a less expensive home, you might agree to a flat fee structure.

Common Questions from Pennsylvania Buyers About Agent Fees

Should I work without my own agent to avoid the buyer's agent commission?

That's your choice, but consider what you're giving up. A good buyer's agent handles negotiations, manages real estate transaction details, coordinates inspections, and oversees closing logistics. For most homebuyers, especially first-time buyers, professional representation is worth the agent fees.

What if I find a home where the seller won't pay the buyer's agent?

We have options. We can ask the seller to pay the buyer agent commission as part of your offer, request seller concessions, or you can pay the buyer's agent fee directly. In a competitive market, home sellers who refuse to pay buyer agent compensation may find their homes sit longer on the market.

Are real estate agent fees negotiable now?

They always were negotiable in the real estate industry. The NAR settlement simply requires real estate agents to inform both buyers and sellers of this explicitly. You can negotiate rates, payment structure, and services included.

What should I expect to pay if I have to pay my own agent directly?

In Pennsylvania, buyer agent commission typically ranges from 2-3% of the home's sale price, or some agents work on flat fee structures. For a $300,000 home, that would be $6,000 to $9,000. However, remember that most sellers are still offering to pay this buyer's agent fee.

How do real estate agent commissions compare to the national average?

According to recent data, buyer's agent commission rates in Pennsylvania are consistent with the national average of 2.4%. Some areas may have slightly higher or lower agent fees, depending on local market conditions and competition among real estate agents.

My Advice for Pennsylvania Home Buyers on Agent Commission

After helping dozens of Grove City buyers navigate these changes, here's what I recommend about buyer agent commission:

Don't Let Agent Fee Concerns Stop You from Getting Help

The cost of making a mistake on a $300,000 real estate transaction far exceeds the cost of professional representation. I've helped homebuyers save money through proper negotiations, contract protection, and market knowledge that more than covers the buyer agent commission.

Be Upfront About Your Expectations on Real Estate Agent Fees

When interviewing buyer's agents, ask about their agent commission structure, the services they provide, and how they handle situations where sellers refuse to pay buyer agent fees. Also, ask if they work with a real estate attorney or title company for closing support.

Focus on Value, Not Just Agent Commission Cost

A great real estate agent who saves you $10,000 in purchase price or helps you avoid expensive mistakes is worth their buyer's agent fee. Don't choose representation based solely on who charges the lowest agent commission.

Understand Your Agreement Before Signing

The new buyer agency agreements are more detailed than those used by many real estate agents before. Read through it and ask questions about anything you don't understand regarding buyer agent compensation, closing costs, down payment requirements, or other real estate fees.

The Bottom Line on Buyer Agent Commission for Pennsylvania Buyers

Despite all the headlines about "major changes" to real estate agent commissions, the practical impact on most homebuyers has been minimal. You'll sign more paperwork upfront, but you'll also have more transparency about agent fees and services.

The most significant change is that you'll know exactly what you're getting from your real estate agent and what buyer agent commission costs before we start working together. That's actually a good thing for both buyers and sellers.

Recent data shows that "the increased commission transparency gives both buyers and home sellers more control and clarity about agent commissions and costs, which is a win for the entire real estate industry.

As a Grove City real estate agent, I've found these changes actually improve the buyer experience. There is less confusion about real estate agent fees, more transparency regarding buyer agent compensation, and better protection for everyone involved in the real estate transaction.

If you're considering buying a home in Grove City or anywhere in Pennsylvania, don't let concerns about buyer agent commissions keep you on the sidelines. The fundamentals of finding and buying the right home haven't changed, and having your own agent for professional guidance is still valuable for navigating closing costs, down payment requirements, and market value negotiations.

Ready to Navigate the New Rules?

If you have questions about how buyer agent commission affects your home buying plans, I'm here to help. As one of the Grove City real estate agents who's been working with buyers through these changes since day one, I can walk you through exactly what to expect regarding real estate agent fees.

The new rules are designed to provide buyers with greater transparency and control over the real estate transaction process. Let me show you how to use them to your advantage and save money where possible.

Call or text me at (724)-992-4128, or reach out through my website. I'll explain exactly how buyer agent commission works in practice and help you understand what to expect when you're ready to buy.