Who Pays the Buyer's Agent Commission in St. Louis Now?

The August 2024 NAR settlement changed how buyer agent compensation is communicated -- but the practical reality for most St. Louis sellers is less dramatic than the headlines suggested. Here is what actually changed, what did not, and what sellers need to know before they list.

What the NAR Settlement Actually Changed

Before the settlement, seller-offered buyer agent compensation was published in the MLS and was a standard part of how listings were marketed. After the settlement, two things changed:

1. Buyer agents must now have a signed written agreement with buyers before showing homes, specifying their compensation.
2. Offers of compensation can no longer be published in the MLS. Sellers can still offer buyer agent compensation -- they just cannot advertise it through the MLS system.

What did not change: sellers can still offer to pay buyer agent compensation as part of the transaction, and many do.

What This Means in Practice for St. Louis Sellers

In the St. Louis market, the practical effect has been limited. Most sellers continue to offer buyer agent compensation because it expands the buyer pool and reduces friction in the transaction. The conversation has shifted from an automatic MLS publication to a negotiated term, but the outcome in most transactions is similar.

Sellers who offer zero buyer agent compensation do see their buyer pool narrow. Buyers with signed buyer representation agreements are contractually obligated to pay their agent if the seller does not -- and many buyers, particularly first-time buyers, cannot absorb that additional cost on top of a down payment and closing costs. This reduces the number of qualified buyers who will submit offers.

What to Offer as a St. Louis Seller

The current market norm in St. Louis for buyer agent compensation, when offered by the seller, runs 2.5% to 3% of the sale price. On a $250,000 home, that is $6,250 to $7,500.

Factors that affect whether to offer, and how much:

• Price point: In lower price ranges ($150,000 to $200,000), offering buyer agent comp is almost essential to attract represented buyers, as buyers in this range rarely have capacity to pay their agent separately.
• Market conditions: In a strong seller's market with multiple offers, the leverage to offer less is higher. In a slower market, offering competitive compensation matters more.
• Property condition and days on market: A property that needs to maximize its buyer pool should not be the place to experiment with zero buyer agent comp.

The Total Commission Picture

Total commission in St. Louis post-settlement typically still runs 5% to 7%, structured as the listing agent's fee plus the buyer agent compensation. The way it is documented and communicated has changed; the overall cost to sellers in most transactions has not changed significantly.

Written Buyer Agreements and What They Mean for Sellers

Since August 2024, buyer agents must have a signed written representation agreement before showing a home. These agreements specify how the buyer agent will be compensated. Sellers interacting with represented buyers should understand that:

• The buyer's agent fee is specified in the buyer's agreement and is the buyer's contractual obligation.
• Sellers can offer to cover the buyer agent fee as a seller concession -- this is the new mechanism that replaced the MLS publication.
• Whether the seller covers the buyer agent fee or not is now a negotiating point that can be addressed in the offer, not a pre-set standard.

Unrepresented Buyers

Some buyers, particularly investors or experienced repeat buyers, will approach sellers without representation. In these cases, no buyer agent compensation is owed to anyone. However, unrepresented buyers may negotiate harder, are more likely to be sophisticated about pricing, and remove the intermediary that often facilitates a smoother transaction process. There are legitimate reasons to work with an unrepresented buyer -- and reasons to be cautious.

Dual Agency in Missouri

Missouri allows dual agency -- where one agent represents both the buyer and seller in the same transaction. Sellers should understand that in a dual agency situation, the agent cannot fully advocate for either party. This arrangement requires disclosure and written consent. The commission structure in dual agency transactions is negotiable.