How the FSBO Can Help the Buyer Pay Their Agent

In the scenario where the FSBO seller does not want to offer a buyer-agent commission, which would be paid out of the seller’s proceeds…

instead, the purchase price is increased, and at closing, the seller gives a credit to the buyer — who then uses that credit to pay their agent .

How This Could Work in Practice

  1. List the property with no buyer-agent compensation on the MLS.

    • Most MLSs now default to “0” or blank in the buyer-broker compensation field.

    • You can note in the private remarks something like:

      “Seller open to cooperating with buyer requests for closing cost credits, subject to lender approval.”

  2. Buyer and seller negotiate total price and credit in the purchase agreement.

    • The buyer might offer a slightly higher purchase price to account for their need to pay their agent.

    • The contract would then include a seller credit (often called a concession) to the buyer at closing.

  3. Credit must comply with lender limits.

    • Conventional loans usually cap seller concessions at 3–6% of the purchase price (depending on down payment).

    • FHA/VA loans also have limits (often 6%).

    • The credit must appear on the closing disclosure (CD) and can be used for closing costs and prepaid items, but not directly paid to the agent — the buyer pays the agent out of their own proceeds.

  4. Transparency & Documentation.

    • The buyer’s agent compensation agreement could be separate — between the buyer and their agent (per new NAR rules).

    • The seller’s credit is disclosed in the purchase contract and on the closing documents, so the lender and all parties see it.

Tips for Consideration

  • You can’t disguise a commission payment as something else or funnel it directly to a buyer’s agent from the seller through escrow unless it’s disclosed as a buyer credit.

  • You can’t write into the MLS that the seller will “pay buyer’s agent via credit” — that would still be viewed as a compensation offer and may violate current MLS rules.

Common Wording Example (for contract or private remarks)

“Seller is not offering compensation to buyer’s brokers. Seller will consider buyer requests for concessions or credits toward closing costs, subject to lender approval.”

This phrasing keeps the seller compliant with MLS rules and still allows flexibility in negotiation.

1. Sample MLS Remarks (Private or Agent Remarks)

(Use in the MLS private remarks section — not the public-facing field)

Private Remarks:
Seller is not offering cooperative compensation to buyer brokers. Seller is open to negotiating buyer requests for seller-paid concessions or credits toward closing costs, subject to lender approval. Any buyer-broker compensation should be addressed directly between buyer and their broker under a separate agreement.

Why this works:

  • Complies with NAR’s 2024 rule: no offer of compensation on the MLS.

  • Makes clear the seller is willing to cooperate in good faith (via credits).

  • Keeps all payments transparent and lender-compliant.

2. Sample Purchase Contract Clause

(This can be added to the Additional Terms or Concessions section of a purchase offer.)

Seller Credit for Buyer’s Costs:
Seller agrees to provide a credit to Buyer at closing in the amount of $______, to be applied toward Buyer’s allowable closing costs, prepaids, or other lender-approved expenses. Buyer may use such funds, at Buyer’s discretion, to pay compensation due to Buyer’s broker, provided such payment is permitted under Buyer’s loan program and reflected on the final Closing Disclosure.

Key points:

  • This keeps the payment flow compliant: seller → buyer → buyer’s costs.

  • The lender and closing agent see it disclosed on the Closing Disclosure (CD).

  • The buyer’s agent gets paid by their client (the buyer), which aligns with post-settlement NAR policy.

 3. Optional Buyer-Broker Agreement Language

(Between buyer and their agent — separate from MLS or contract)

Buyer agrees to compensate Broker in the amount of % of the purchase price (or $__) for services rendered in connection with the purchase of a property. Buyer and Broker acknowledge that any seller concession or credit received by Buyer may be applied toward this obligation, as permitted by the lender.

Compliance Checklist

✅ No compensation is offered or displayed in the MLS.
✅ Seller credit is disclosed and lender-approved.
✅ Buyer-agent pay agreement exists off-MLS and between buyer and broker.
✅ All flows are transparent and appear on the closing disclosure.