How Realtor Commission Actually Works Now
The rules changed in August 2024 and most explanations online are still wrong. Here is the plain version for a Las Vegas transaction.
What Actually Changed
Two practice changes, effective August 17, 2024.
There has never been a standard commission rate. It has always been negotiable, and saying otherwise would be a legal problem. What changed is where and how the conversation happens.
Offers of compensation left the MLS
A seller can no longer advertise buyer agent compensation through the multiple listing service. If it is offered, it gets negotiated in the transaction instead.
Written buyer agreements became mandatory
An agent must have a signed written agreement with a buyer before touring a home. It has to state the compensation, and the agent cannot receive more than what it says.
What did not change: sellers can still contribute toward the buyer’s agent, and most still do. It just gets negotiated as part of the deal now rather than published in advance. Total commissions have drifted modestly lower, not disappeared.
What Is Inside a Buyer Agreement
Read all five of these lines before you sign anything.
All six of those are negotiable. If you are not sure yet, ask for a shorter term or a narrower scope to start. A good agent will not flinch at that. Anyone pressuring you into a long exclusive on the first showing is telling you something.
If You Are Selling
You have a real decision to make, and it is not automatic.
Your listing agreement covers what you pay your own agent. Separately, you decide whether to contribute toward the buyer’s agent, and how much. Both are negotiable and they are now priced separately rather than bundled.
Most sellers still contribute
Offering something toward the buyer side widens your buyer pool, particularly for buyers who are tight on cash to close.
It can be a concession instead
A closing cost credit negotiated in the contract accomplishes much of the same thing with more flexibility.
Offering nothing is allowed
It is your right. Just understand it may reduce showings, and buyers may ask you to cover it in their offer anyway.
Ask what you actually get
Photography, staging guidance, syndication, negotiation. Compare services, not just the rate, before you pick a listing agent.
Model the net, not the rate. Run the numbers with and without a buyer side contribution alongside your other seller closing costs before you decide.
If You Are Buying
You are now responsible for your agent’s fee, at least on paper.
Your written agreement obligates you to a fee. In practice, that fee is frequently covered in whole or in part by what the seller contributes at closing, which is negotiated inside the purchase contract along with everything else.
Negotiate the agreement itself
Rate, term, scope, and exclusivity are all on the table before you sign. Start with what you are comfortable committing to.
Ask about seller contribution per listing
It is no longer in the MLS, so your agent has to ask the listing side. That should happen before you write an offer.
Build the gap into your offer
If the seller is contributing less than your agreement calls for, that difference gets negotiated in the contract terms.
Remember new construction
Builders typically still compensate a buyer’s agent, and they have already budgeted for it. Register your agent on the first visit.
Commissions were always negotiable. The difference now is that everyone has to say the number out loud and put it in writing, which is honestly an improvement.
Want the Numbers for Your Situation?
Tell me whether you are buying or selling and I will walk you through exactly what the fees look like on your transaction, before you commit to anything.
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Common Questions
Tap any one to open it.
What is the standard Realtor commission in Las Vegas?
There is no standard rate, and there never legally was one. Every commission is negotiated between the client and the brokerage. Anyone who tells you a specific number is required is either mistaken or saying something they should not. Ask what a given agent charges and what you get for it, then compare.
Who pays the buyer’s agent now?
Contractually the buyer is responsible under their written agreement. In practice sellers still frequently contribute toward it, negotiated inside the purchase contract rather than advertised in the MLS. On a given deal it can be the seller, the buyer, or a split of both.
Do I have to sign a buyer agreement before looking at homes?
Yes, if you want an agent to tour homes with you. Since August 17, 2024, a written agreement stating compensation is required before a showing. The terms are negotiable, including how long it lasts and whether it is exclusive, so read it rather than treating it as a formality.
Can I negotiate the commission when I sell?
Absolutely, and you should have the conversation openly. Ask each agent what their fee covers, what marketing is included, and how they handle negotiation. The cheapest listing fee is not automatically the best net result, and the most expensive is not automatically the best service. Compare on both.
Did commissions actually go down after the settlement?
Modestly, not dramatically. The market has settled into a place where compensation is discussed explicitly and negotiated per transaction rather than published up front. Most sellers still contribute something toward the buyer side because it broadens their buyer pool.
What if the seller offers nothing toward my agent?
Then it becomes part of your offer negotiation. You can ask the seller for a concession to cover it, adjust your price accordingly, or pay the difference yourself. Your agent should tell you what the listing side is offering before you write, so there are no surprises at closing.
Let’s Talk Numbers, Openly
I would rather tell you exactly what my fee is and what it buys than have you guess. Call me and ask. No pressure, no long agreement to start.
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Lori Ballen
I’ve lived in Las Vegas since I was five years old and I have never been shy about what I charge or why. If you want a straight answer before you sign anything, email me at lori@loriballen.com.
702-604-7739