How Buyer-Agent Compensation Works in Massachusetts
A plain-English guide to negotiable buyer-agent fees, written agreements, seller contributions, and what Massachusetts buyers may owe.
There is no standard fee
Massachusetts’ buyer-agency guidance says compensation is always negotiable and that there is no standard compensation. A brokerage may offer a percentage of the sale price, a flat fee, a retainer, or priced services. Ask what each option includes rather than comparing a number by itself.
For agents covered by NAR’s MLS rules, a written buyer agreement must state compensation in an objectively ascertainable way and must say that commissions and fees are fully negotiable and not set by law.
Four common ways the fee can be funded
The written agreement establishes what the buyer has agreed the brokerage may earn. The transaction then determines where the funds come from. Do not assume the seller will pay simply because that was common in past transactions.
- The buyer pays the agreed fee directly
- The seller authorizes the listing broker to pay some or all of it outside the MLS
- The buyer negotiates for the seller to pay the buyer brokerage
- The buyer requests a seller concession that may cover an allowed cost, subject to the contract and loan rules
Ask about any shortfall before touring
Use a simple example. If your agreement promises a specific fee and the seller or listing broker contributes less, does the agreement require you to pay the difference? If it contributes the full amount, can the brokerage receive more than the amount you agreed? NAR’s MLS rules prohibit an MLS participant from receiving more from any source than the amount in the buyer agreement.
Have the agent show how the answer appears in the actual agreement. Avoid open-ended language such as whatever amount the seller offers.
Seller help is negotiated, not guaranteed
A seller can choose whether to offer buyer-broker compensation or agree to a concession. That choice may be communicated outside the MLS or negotiated in the offer. A request affects the seller’s net proceeds, so evaluate it alongside price and the rest of the offer—not as free money.
If you are financing, ask the lender before relying on a concession or credit. Loan programs can limit how credits are used, and the structure must be reflected correctly in the offer, Purchase and Sale Agreement, loan documents, and closing statement.
Questions that prevent surprises
Discuss compensation before you sign and again before each offer. You should be able to describe the arrangement in one or two sentences.
- What exact amount or rate have I agreed to?
- Which services are included, and are any charged separately?
- When is a fee earned and when is it payable?
- How are seller or listing-broker contributions credited?
- Could I owe a shortfall or fee after the agreement ends?
- Will the lender allow the planned payment structure?