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Understanding Real Estate Commissions After the NAR Settlement

For Buyers in Central Virginia

Understanding Real Estate Commissions After the NAR Settlement

In August 2024, a major legal settlement reshaped how commissions are handled. Historically, sellers guaranteed buyer agent compensation upfront (commonly 2.5–3%). Post‑settlement, that amount is not assumed and isn’t automatically shown in the MLS. Buyer agents now must have a written agreement with their clients explaining compensation. Practically, this gives buyers more control and the chance to save money with the right structure.

My Approach: Transparent, Flat‑Fee Buyer Representation

I use a predictable structure that keeps you competitive and maximizes savings:

  • $4,000 flat fee + 1% of the purchase price
  • When we write your offer, I negotiate for the seller to pay as much buyer‑agent compensation as possible in the contract, typically 2.5-3% of the sales price.
  • Because my fee is capped, any surplus is rebated back to you at closing.

Example: On a $500,000 home with 3% negotiated, the contract sets aside $15,000. My fee is $9,000 ($4,000 + 1%), so you receive a $6,000 rebate at closing.

Client Savings Over $500,000returned to clients via reduced fees since 2021
 

Buyer FAQ: Flat‑Fee Representation Explained

Will I ever pay more out of pocket?

Nope! My fee is always $4,000 + 1%. In nearly every case, I negotiate 2.5–3% buyer‑agent compensation as part of your offer. If the negotiated amount exceeds my fee, the surplus is rebated to you at closing. If it’s lower, we’ll structure the offer to keep you competitive and minimize cash outlay.

How do rebates work?

Rebates appear as a credit on your closing statement, reducing cash to close or offsetting costs like inspections and moving. For many clients, the rebate is several thousand dollars.

Does this make my offer less competitive?

Nope! In fact, can make your offer more competitive. Since the settlement, negotiating buyer‑agent compensation in the offer is standard. We position the terms so they support your chances, not hurt them.

Why not use a traditional agent?

Traditional agents often take the full 2.5–3%. On a $400,000 home, that’s $10,000–$12,000. My model is $8,000, typically yielding a $2,000–$4,000 rebate to you without sacrificing service, protection, or negotiation strength.

What if the seller refuses to pay any buyer‑agent compensation?

Uncommon, but if it happens we’ll decide whether to adjust terms, request concessions, or pursue another property. You’ll always know my fee upfront and won’t be surprised at closing.

 

Example: $500,000 Home Purchase

  Traditional Agent (3% Commission) Mason’s Flat‑Fee ($4,000 + 1%)
Purchase Price $500,000 $500,000
Buyer‑Agent Compensation (negotiated in contract) $15,000 (3%) $15,000 (3%)
Buyer Agent Fee — $9,000 ($4,000 + 1%)
Surplus Rebate to Buyer — $6,000
Total Cost to Buyer $15,000 $9,000 net

Result: You keep an extra $6,000 at closing with my model without giving up service, protection, or negotiation leverage.

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Real Estate Done Right​

Looking to buy, sell, or invest in real estate? Whether you are serious about moving or just have questions, I would be happy to hear from you and share my expertise on the Lynchburg Market.

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Contact Details

Mason Kiffmeyer

Phone

(952) 715-7715

Email

[email protected]

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