The way real estate professionals discuss services and compensation has changed significantly since the industry’s practice changes took effect in August 2024. By 2026, written buyer agreements and more transparent conversations about compensation are an established part of many real estate transactions.
With greater flexibility comes greater responsibility. REALTORS® and their brokerages need clear, consistent practices for explaining services, discussing compensation, and negotiating agreements with consumers. Consistency is not simply a good business practice—it can also help reduce the risk of unequal treatment and fair housing concerns.
Give Every Consumer a Consistent Starting Point
Compensation between a consumer and real estate professional is negotiable and is not set by law. Written buyer agreements are intended to clearly establish the services being provided and the compensation agreed upon by the parties. Compensation must be stated in an objectively ascertainable way rather than left open-ended.
That flexibility makes it especially important for real estate professionals to have a process for presenting their services.
For example, if your brokerage offers different service packages, pricing structures, or representation options, establish a consistent way to explain those choices to consumers. Buyers should understand the available options and be given an opportunity to select the arrangement that best fits their needs, subject to applicable state law and brokerage policy.
The goal is not to make every transaction identical. Every consumer has different circumstances, and legitimate differences in services or pricing may be appropriate. The key is having a legitimate, documented reason for those differences—and applying your policies consistently.
Make Compensation Conversations Clear
A compensation discussion should be straightforward, professional, and easy for a consumer to understand.
Before entering into a written buyer agreement, explain:
- What services you will provide.
- What the consumer will pay, if anything.
- How your compensation is calculated.
- Whether compensation may come from another source.
- What happens if the seller or another party offers compensation.
- What services are included or excluded from the relationship.
- How the agreement can be changed or terminated under its terms and applicable law.
A buyer agreement should reflect the actual agreement reached between the consumer and the real estate professional. NAR guidance states that compensation must be clearly defined and that a buyer broker may not receive compensation from any source exceeding the amount or rate agreed to with the buyer.
Consumers should not have to guess what they are agreeing to—or discover important financial terms later in the transaction.
Remember: Offers of Compensation Still Exist, but the MLS Is Different
The removal of offers of compensation from MLSs did not eliminate the ability of sellers to offer compensation to a buyer’s broker.
A seller may choose to offer compensation, with the seller’s written authorization, and those offers may be communicated through permitted channels outside the MLS. A buyer may also request that the seller provide compensation to the buyer’s broker as part of an offer, subject to the applicable agreement and law.
This distinction is important.
Real estate professionals should avoid suggesting that sellers are required to offer buyer-broker compensation—or that buyers are required to accept a particular compensation arrangement. Instead, explain the available options and let the parties make informed decisions.
Consistency Helps Protect Fair Housing
Fair housing obligations apply throughout the transaction, including conversations about services, pricing, and compensation.
A consumer’s race, color, religion, sex, disability, familial status, national origin, or another protected characteristic should never influence whether an agent offers a particular service, price, concession, or level of attention.
The risk is not limited to intentional discrimination. Unconscious assumptions can affect how professionals communicate, negotiate, or make exceptions for different consumers.
For that reason, brokerages should consider establishing written guidelines for:
- Presenting service and representation options.
- Explaining buyer agreements.
- Discussing compensation.
- Handling requests for discounts or alternative pricing.
- Offering different levels of service.
- Documenting negotiated changes.
- Responding when a consumer requests treatment that could raise fair housing concerns.
Having a policy is only the first step. The policy needs to be followed.
Document the Business Reason for Differences
Not every consumer will receive identical terms. A buyer may negotiate a different fee because of the services requested, transaction complexity, timing, or another legitimate business consideration.
What matters is that the reason for the difference is legitimate, documented, and unrelated to a protected characteristic.
Good records can help demonstrate that pricing and service decisions were based on business considerations rather than personal characteristics or stereotypes.
Documentation should accurately reflect what was discussed, what was offered, what the consumer selected, and why material changes were made. Any amendments to an agreement should have a legitimate basis and should be made with the consumer’s informed consent. NAR specifically cautions against using agreements or amendments simply to work around compensation requirements.
Sellers Have Fair Housing Responsibilities, Too
Fair housing considerations do not stop with buyer representation.
Sellers have obligations under fair housing laws, and real estate professionals should not participate in discriminatory instructions or practices. If a seller attempts to make a decision about a buyer, buyer’s agent, services, or compensation based on a protected characteristic, the agent should address the issue promptly and involve the broker as appropriate.
The safest approach is to educate the client about the applicable requirements, document the conversation, and seek broker or legal guidance when necessary.
A real estate professional should never allow a discriminatory client instruction to become a discriminatory business practice.
Build the Process Before the Negotiation
Compensation negotiations are easier to handle when a brokerage has already established a framework for them.
Consider reviewing your current procedures and asking:
Do we present the same basic service options to similarly situated consumers?
Can our agents clearly explain how compensation works?
Are our written buyer agreements consistent with current brokerage, MLS, state, and federal requirements?
Do we document legitimate reasons for differences in pricing or services?
Do our agents understand that compensation offered outside the MLS is different from an MLS offer of compensation?
Do we have a process for handling potential fair housing concerns?
Are our policies being applied consistently across the team?
These questions can turn a potentially uncomfortable compensation conversation into a routine part of the client relationship.
Consistency Builds Trust
The modern real estate transaction gives consumers more opportunity to discuss and negotiate the services they receive and how those services are compensated. That flexibility can benefit both consumers and professionals—but it also requires discipline.
A strong practice is not necessarily one in which every consumer receives exactly the same terms. It is one in which consumers receive clear information, meaningful choices, and fair treatment, while the professional applies legitimate business policies consistently.
For REALTORS®, that means approaching every compensation conversation with transparency, professionalism, fair housing principles, and careful documentation.
When the process is consistent, consumers are better positioned to make informed decisions—and real estate professionals are better positioned to demonstrate that those decisions were made fairly and ethically.
Source: REALTOR® Magazine
“Consistency Is Crucial When Negotiating With Consumers”
National Association of REALTORS®
