Who Actually Pays the Buyer's Agent in LA Luxury Right Now — And Why Nobody Explained It to You

Here's what the market is actually doing right now: two years into the biggest change to how real estate commissions work in a generation, most buyers and sellers in Los Angeles still can't answer a simple question—who pays the agent who represents the buyer?

I get asked this in Bel Air living rooms and over coffee in Brentwood almost every week. And most agents won't tell you this, but the confusion isn't an accident. A vague answer keeps the negotiation on their terms, not yours.

So let me make it clear, because when you're transacting at eight figures, clarity is leverage.

The Rule Changed. The Math Didn't Disappear.

Following the National Association of Realtors settlement, two things are now true on every deal:

• Offers of buyer-agent compensation can no longer be advertised on the MLS (Multiple Listing Service).
• Before touring a home with an agent, buyers must sign a written Buyer Representation Agreement outlining how their agent will be compensated and who is expected to pay that compensation.

That's it. Those are the mechanical changes.

What did not change is the underlying economics.

A buyer's agent still earns a fee for representing their client, and someone still pays it. The settlement didn't eliminate commissions, cap them, or establish a standard rate. In reality, commissions have always been negotiable—and they still are.

The difference today is that compensation is negotiated openly, transaction by transaction, instead of being displayed on the MLS.

In Luxury, the Seller Usually Still Pays—Here's Why

One of the biggest misconceptions in today's market is that buyers now have to write a separate check to pay their own agent.

In most luxury transactions, that's simply not how deals are being structured.

Instead, sellers frequently agree to provide a buyer-agent concession as part of the purchase contract. Rather than advertising compensation upfront, it's negotiated directly during escrow.

Why would sellers continue doing this?

Because it expands the buyer pool.

Reducing a buyer's upfront costs makes the property accessible to more qualified purchasers, creating greater competition, stronger offers, and often better overall terms.

Interestingly, luxury commissions also tend to be leaner than many people assume.

Homes selling above $1 million average roughly 2.2% in buyer-agent compensation—meaningfully below the 2.5% or higher that's still common in lower-priced markets.

On a $6 million Beverly Hills transaction, that difference represents a substantial amount of money—and it's fully negotiable.

The Buyer Representation Agreement Is Now Your Most Underrated Negotiating Tool

The Buyer Representation Agreement isn't just another disclosure to sign.

It's one of the most important negotiating documents in your transaction.

The agreement defines:

• Your agent's compensation
• Who is expected to pay it
• Whether you could become responsible for any shortfall if the seller's concession doesn't fully cover the agreed amount

That final point is where strategy matters.

A strong agent structures the offer so the seller's concession covers the agreed compensation whenever possible, preserving your cash for your down payment, renovations, reserves, or future investments.

A passive agent simply hopes the numbers work out.

When I'm representing buyers purchasing a Trousdale contemporary or a gated Holmby Hills estate, the compensation strategy is resolved before we ever step through the front door.

That's not paperwork.

That's negotiating from strength instead of negotiating from surprise.

What This Means If You're Buying or Selling in 2026

If You're Buying

• Read your Buyer Representation Agreement carefully.
• Understand exactly how your agent will be compensated.
• Work with someone who knows how to negotiate seller concessions that minimize your out-of-pocket costs.

If You're Selling

Offering a buyer-agent concession isn't a default.

It's a strategic pricing decision.

Depending on your property's demand, competition, and market position, that concession can become a valuable tool for attracting stronger buyers and generating better offers.

I don't just list properties.

I position them.

That includes positioning every dollar of the compensation conversation so it serves your objectives—not someone else's.

Transparency Is Only Valuable If You Know How to Use It

The new rules have made real estate compensation more transparent.

That's a positive change.

But transparency only creates an advantage when you understand how to use it during negotiations.

Otherwise, it simply becomes another document you sign without fully appreciating how it affects your bottom line.

Let's Talk Strategy

If you're considering buying or selling luxury real estate in Los Angeles and want a clear explanation of how buyer-agent compensation will actually work on your transaction—before you sign anything—I'd be happy to walk you through it.

No pressure. No jargon. Just straightforward advice tailored to your situation.

Amir Jawaherian
The Agency
CA DRE# 01899893

Email: [email protected]
Phone: (818) 561-1600