How Buyer Agent Compensation Works Now: Northern Virginia After the NAR Settlement

Buyer agent compensation in Northern Virginia now starts with a signed, written agreement between you and your agent that states the fee, how it’s paid and when. Sellers can still pay that fee, in full or in part, but it’s negotiated in your offer rather than advertised in the MLS. If the seller doesn’t cover it, the buyer is responsible for whatever the agreement says, so it pays to understand the moving parts before you tour.

What actually changed, and when

Two sets of rules landed close together in 2024, and they overlap in useful ways.

Date	Change	What it means for you
July 1, 2024	Virginia law requires a written brokerage agreement before providing brokerage services	Your agreement must state the fee amount, how and when it’s paid, the services, and an end date (90 days if none is stated)
August 17, 2024	NAR settlement practice changes take effect	Written agreement before touring; no offers of buyer broker compensation in the MLS
November 2024	Federal court gives final approval to the settlement	The practice changes are now the long-term framework

Virginia’s requirement is in Va. Code § 54.1-2137. NAR summarizes the national side in its written buyer agreements explainer, including the rule that compensation has to be objectively ascertainable, not something like whatever the seller offers.

What’s inside a buyer agreement

Forms vary by brokerage, but in Northern Virginia you’ll see the same core pieces:

• Compensation: a flat fee, a percentage of the price, or a combination, stated clearly.
• Who pays and how: usually that the agent will first seek payment from the seller or listing broker, with the buyer responsible for any shortfall.
• A cap: the agent can’t collect more than the agreed amount from all sources combined.
• Term: start and end dates. Shorter terms are fine; ask for one if you’re unsure.
• Scope: whether it covers one property, a geographic area or the whole search, and whether it’s exclusive.
• Services: what the agent will actually do for you.
• Dual representation disclosures, if you consent to it.

Read the termination language. A clear agreement should tell you how either side can end it and what happens if you buy a home you saw during the term.

Who pays: the four common paths

1. The seller agrees to pay your agent’s fee as a term in your purchase offer. This is common and keeps your cash to close lower.
2. The listing broker shares part of its commission under its agreement with the seller, communicated outside the MLS.
3. The seller gives a concession toward your costs, which can be used for allowable closing costs. Your lender decides how a broker fee fits within program rules.
4. You pay directly at closing, from your own funds, for any part not covered.

In practice, many deals use a mix. The point is that it’s your negotiation now, and a seller weighing several offers will look at the net, not just the price.

A note for VA, FHA and conventional borrowers

Loan programs limit seller concessions and have their own rules on what a buyer can pay. VA issued a temporary policy in 2024 allowing veterans to pay their own broker fees in certain cases. Ask your lender early how a seller-paid fee, a concession or a buyer-paid fee would be treated on your specific loan.

For sellers: what to decide before you list

• Whether to offer buyer agent compensation, and how to communicate it. Your listing agent can share it directly with agents who ask, just not through the MLS.
• How to compare offers that ask you to pay different amounts. A sales net sheet makes it simple; try our sales net sheet.
• What your listing agreement says about splitting the commission with a buyer’s broker.
• Questions to ask your listing agent about strategy; I keep a list in questions to ask a listing agent.

A worked example

Illustrative numbers only. Every fee is negotiable and none of these are standard rates.

A buyer signs an agreement for a buyer broker fee of 2.5% on a $750,000 Fairfax County townhouse, or $18,750. The listing broker has told agents the seller will contribute 2%, or $15,000. The buyer’s offer asks the seller to pay the $15,000, leaving a $3,750 gap.

Options for the gap: ask the seller to cover it in the offer, ask the seller for a concession and let the lender confirm it can be applied, pay it in cash at closing, or renegotiate with your agent before writing. Each path changes your cash to close, so run it through our closing cost estimator alongside the down payment.

Common mistakes

• Signing the first agreement put in front of you without reading the term, scope and fee.
• Assuming the seller will always pay. Many do, but it’s a negotiation, not a rule.
• Forgetting that loan rules can limit how much a seller can contribute.
• Writing an offer without deciding how you’ll handle a fee gap.
• For sellers, refusing to discuss buyer agent compensation at all, then wondering why showings slow down. Your call, but know the trade-off.

For the rest of the buying side, my buyer resources cover financing, offers and closing. This post is general information; for questions about a specific contract, talk with a Virginia real estate attorney.

Frequently asked questions

Do I have to sign a buyer agreement to see a house in Virginia?

An agent needs a written agreement with you before providing brokerage services, including touring. Open houses you attend on your own don’t require one. The agreement can be limited to one property or a short term.

Does the seller still pay the buyer’s agent after the NAR settlement?

Often, yes, but now it’s negotiated. You can ask the seller to pay your agent’s fee in your offer, and the seller can accept, counter or decline.

Is buyer agent commission negotiable?

Yes. Commissions aren’t set by law, and the agreement must say so. You can negotiate the rate, structure, term and scope.

Can buyer agent compensation be listed on the MLS?

No. Since August 17, 2024, offers of compensation to buyer brokers can’t be made through the MLS, though they can be shared in other ways.

Sources

• Va. Code § 54.1-2137, brokerage agreements
• NAR: Written buyer agreements 101
• NAR: What the settlement means for buyers and sellers