Who pays the buyer’s agent now?
Short answer: it is negotiable on every sale, and it gets agreed at offer time. Sellers are not required to offer anything. Most Minnesota sellers still do, because it keeps their home competitive — but the number is theirs to choose, and the old automatic 2.7% is no longer automatic.
What the number usually looks like
Three figures worth knowing before you set yours.
| Reference point | Typical rate | What it means for you |
|---|---|---|
| Minnesota convention | ~2.7% | What buyer agents here have historically expected |
| National average | 2.0–2.2% | Where the rest of the country has settled |
| What we generally suggest | 2.0–2.4% | Competitive without overpaying |
| Your actual obligation | Whatever you choose | Including nothing, if you decide that |
On a $400,000 home, the difference between 2.7% and 2.0% is $2,800. That is a real decision, not a rounding error, and it is one most sellers were never told they were making.
The part that trips buyers up
This is the mechanic worth understanding, because it is where the confusion in the market actually lives. Buyers now sign a representation agreement with their agent before touring homes, and that agreement names a rate.
If the agreement says 2.7% and the seller is offering 2.0%, the buyer is personally responsible for the 0.7% difference — out of pocket, at closing, on top of their down payment and closing costs.
| On a $400,000 purchase | Amount |
|---|---|
| Buyer’s agreement with their agent | 2.7% = $10,800 |
| Seller is offering | 2.0% = $8,000 |
| Buyer owes their own agent | $2,800 |
Which is why compensation really belongs in the offer negotiation, where both sides can see it and price it, rather than being locked in by a form signed weeks earlier against a number nobody has agreed to yet.
How it works with a flat listing fee
The two are completely separate, and keeping them separate is the point. The flat $6,500 is what you pay for your own representation — listing, marketing, negotiation, management through closing. Buyer-agent compensation is a different decision entirely, made when you have an offer in front of you.
- Bundles both sides into one percentage
- Listing side roughly 3%
- Buyer side roughly 3%
- $24,000 on a $400,000 home
- Your side: flat $6,500, any price
- Buyer side: you choose, per offer
- At 2.4% that is $9,600 on $400,000
- About $16,100 all in
Unbundling is what makes the decision visible. When both sides are inside one percentage nobody discusses either one.
Common questions
Do I have to offer buyer-agent compensation at all?
No. There is no requirement to offer anything. In practice most Minnesota sellers offer something, because a home offering nothing can see fewer showings when buyers are weighing an out-of-pocket cost on top of their down payment. It is a competitiveness decision, not an obligation.
Can I decide later instead of up front?
Yes, and there is a case for it. Compensation can be negotiated at offer time alongside price, closing date and contingencies, where it is one term among several rather than a fixed number set before your home hits the market.
Will offering less mean fewer showings?
It can, though less than people expect. The bigger factors remain price, photography and condition. A well-priced, well-presented home offering 2.0% generally outperforms an overpriced one offering 2.7%.
How does this affect what I keep?
Directly. On a $400,000 sale, a flat $6,500 listing fee with 2.4% to the buyer's agent runs about $16,100 in commission against roughly $24,000 at a traditional 6% — about $7,900 more kept. Moving the buyer-side number changes it further in either direction.
Is the 2.7% Minnesota standard going away?
It is loosening rather than disappearing. Plenty of buyer agents still ask for 2.7% and many sellers still offer it out of habit. But it is now an opening position rather than a fixed rate, and sellers who treat it that way keep more.
Run your own numbers.
See what you keep at your price, with the buyer-side number you choose.