While they used to be more popular and possibly more effective, since the changes of last year (effective August 2024), buyer agent bonuses are tricky.
Please see pg 6 of the Exclusive Right To Sell Contract:
Typically the seller would agree to pay your 3% and then an additional $500 (or whatever predetermined amount) to a buyer agent; but this would need to be in additional terms & conditions, or on a listing change form.
Bonus payments should come from the seller, not from the agent. Your seller should be the one that chooses to do this, not you on your own, and it cannot “come out of your commission.”
It’s also now trickier for a buyer’s agent to accept a bonus. Because their buyer’s agency agreement states what they are collecting. If they get more than whatever they put in their buyer agency form, they have to disclose it to their buyer.
If you’re representing the buyer, you should tell them exactly what compensation you’re receiving — including any bonus — and confirm whether it will affect their costs or rebate. Under NAR’s Code of Ethics, agents must disclose compensation from any source other than their client before the offer is made. If the Buyer’s agent is receiving more or less compensation than what their Exclusive Buyer Agency states, they will need to modify that with a change form as well AND get their buyer’s permission.
Please see pg 2 of the Exclusive Buyer Agency Contract:
If your seller chooses to offer a buyer-agent bonus, remember that it cannot be advertised anywhere in the MLS—not even in the private or agent remarks. Instead, it can be promoted off-MLS, such as on social media or in direct marketing. For example: “Seller offering a $500 bonus to Buyer’s Agent with an acceptable offer by 10/31/2025.”
Keep in mind, the Buyer’s Agent must get written permission from their buyer before accepting any additional compensation. The bonus should be paid at closing, reflected on the HUD/CD, and disbursed to the Buyer’s Agent’s brokerage, not directly to the agent.
In my opinion, offering or accepting buyer-agent bonuses is no longer a best practice. A buyer should choose a home because it’s the right fit for them — not because their agent is receiving additional incentives. These bonuses can also create potential issues for the seller. In a worst-case scenario, if a buyer later discovers a problem with the home, they could claim that both their agent and the seller unduly influenced their decision to purchase, especially if the agent received extra compensation on that transaction.
Recent Comments