In an off-market real estate deal, the buyer's agent commission is negotiated directly between the parties rather than set by MLS rules. The U.S. total commission averages 5.46%, but in an off-market deal none of that is automatic. Buyers may pay their agent out of pocket, negotiate for the seller to cover it, or use a flat-fee alternative.
Off-market deals operate entirely outside standard MLS commission norms. You need to know who pays, how much, and what written-agreement rules apply in your market before you make an offer.
What Does ‘Off-Market Deal’ Mean in Real Estate?
An off-market property, sometimes called a pocket listing, is a home sold without being publicly listed on the Multiple Listing Service (MLS). The MLS is the shared database that real estate agents use to advertise properties and coordinate offers. When a home sells off-market, that transaction happens through private networks, direct outreach, or word of mouth rather than a public portal.
Sellers choose off-market sales for various reasons: privacy, a desire to test the price before committing, or a relationship with a buyer they already know. The trade-off is reduced exposure. According to Zillow's 2026 analysis, sellers who listed off the MLS typically sold for 1.3% less than MLS-listed sellers, losing a combined $1.36 billion over three years.
For buyers, the appeal is different. Off-market deals can mean less competition, more room to negotiate, and access to properties that never appear on public search portals. They also come with less price transparency and no standardized commission framework.
That last point matters. On a standard MLS transaction, commission terms are visible to all agents in the system. Off-market deals have no such structure, so every commission arrangement is negotiated from scratch. That puts more responsibility on you to understand what you are agreeing to before you sign anything.
For a closer look at how buyers can access these properties, see The Role of a Buyer's Agent in Securing Off-Market Properties in Australia.
How Do Real Estate Commissions Work in Off-Market Transactions?
Real estate commissions in off-market deals work differently from MLS transactions because no central system dictates how fees are split or disclosed. On a standard MLS sale, the listing agent and buyer's agent divide a total commission that is advertised to all parties upfront. Off-market deals remove that structure entirely.
In a typical U.S. MLS transaction, the total commission averages around 5.46%, split between a 2.76% listing-agent fee and a 2.70% buyer's-agent fee. Those figures give you a useful baseline when entering any negotiation, on-market or off. Note that the NAR settlement rules described in this article apply to U.S. transactions. If you are buying in Australia, compensation is governed by separate state licensing frameworks, and the specific NAR requirements do not apply.
In an off-market transaction, the seller and their representative agree on a total commission privately. Whether any portion of that goes to a buyer's agent depends on what the parties negotiate. There is no MLS field requiring the seller to offer a buyer-agent fee, and there is no industry body enforcing a standard split.
This creates two practical outcomes. First, the buyer's agent commission in an off-market deal is almost always a direct negotiation point, not a given. Second, you need to know your agent's fee before the deal is structured, because it may need to be written into the purchase contract explicitly.
The NAR settlement, which took effect in August 2024, reinforced this shift. It banned MLS-based offers of buyer-agent compensation and required written buyer-broker agreements before any home tour. That rule applies to MLS transactions, but it also set a new cultural norm: compensation is a conversation you have upfront, not an assumption baked into the listing.
According to Paperless Pipeline's 2026 analysis of 377 brokerages, the average buyer-side commission rose slightly after the settlement to 2.69%. Rates did not drop as some predicted. If anything, the formal written-agreement process made buyer-agent fees more visible and, in many cases, more firmly held.
For off-market buyers, the takeaway is straightforward. Expect to negotiate commission directly and sign a written agreement with your agent before viewing any property. That written agreement must state your agent's fee clearly, so you know the cost before the property is ever in play.
Who Pays the Buyer’s Agent Commission in an Off-Market Deal?
Whether the seller or the buyer covers the buyer's agent fee in an off-market deal depends entirely on what the parties agree to. There is no MLS rule, no industry mandate, and no reliable published data on how often each outcome occurs in off-market transactions specifically. Go into the deal knowing all three scenarios are possible.
Scenario 1: The seller pays the buyer's agent commission. This is the outcome most buyers prefer and the one that mirrors how MLS deals traditionally worked. The seller agrees, either in the purchase contract or a side agreement, to cover your agent's fee as part of the overall deal. Sellers may accept this because it broadens the buyer pool and keeps the transaction moving. Whether a seller will agree depends on their motivation, the price, and how much competition exists for the property. For more detail on when and how sellers take on this cost, see Do Sellers Pay Realtor Fees: What Buyers Should Know.
Scenario 2: The buyer pays the buyer's agent commission directly. Post-NAR settlement, this arrangement is increasingly common and increasingly formalized. Your written buyer-broker agreement will state the fee your agent expects. If the seller will not cover it, you pay it out of pocket at closing. The actual figure is negotiable, and the total commission average of 5.46% (split roughly 2.70% to the buyer's side) gives you a market reference.
Scenario 3: A split or reduced arrangement. Sometimes the seller agrees to cover part of the buyer's agent fee and the buyer covers the rest. Alternatively, you may negotiate a reduced flat fee with your agent in exchange for a faster or simpler transaction.
To gauge which outcome is likely in your deal, look at the seller's motivation, how long the property has been available, and whether competing buyers are in the picture. A motivated seller with no other offers is more likely to absorb your agent's fee than one fielding multiple bids. For a full breakdown of situations where a seller refuses to pay, see Can a Seller Refuse to Pay Buyers Agent Fees in 2026.
What Are the New Rules for Real Estate Commissions After the NAR Settlement?
The NAR settlement, which took effect in August 2024, changed two things that directly affect buyers in any transaction, including off-market deals. First, it banned offers of buyer-agent compensation from appearing on MLS listings. Second, it made written buyer-broker agreements mandatory before a buyer's agent can tour a home with you.
That second rule is the one you feel most immediately. Before the settlement, many buyers worked with agents for weeks before signing anything formal. Now you must have a written agreement in place that spells out your agent's fee, the services they will provide, and the term of the arrangement, all before you see a single property.
For off-market buyers, the written agreement requirement matters in a specific way. Off-market deals already had no MLS structure governing compensation. The settlement did not create new rules for those deals directly, but it established a clear expectation: compensation is agreed to in writing, upfront, every time.
On rates, the data is worth knowing. According to Paperless Pipeline's 2026 analysis of 377 brokerages, the average buyer-side commission rose slightly after the settlement to 2.69%. Rates did not fall as some commentators predicted. The formal written-agreement process made buyer-agent fees more visible, not cheaper.
What the settlement did change is the conversation. Your agent must tell you their fee before you tour anything. That transparency works in your favor when negotiating an off-market deal, because you walk in knowing exactly what your agent costs and can factor that into your offer strategy.
The principles around written agreements and upfront fee disclosure are good practice anywhere, even where the NAR rules do not apply. If you want a structured approach to the full buying process, the Sunshine Coast property buying strategy guide covers each stage from search through to closing.
How to Negotiate Commission When the Seller Won’t Pay
When a seller declines to cover your buyer's agent fee, you have several options. None of them are automatic, and all of them require you to act before you make an offer, not after. Here is a practical sequence to follow.
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Confirm your agent's fee in writing before you tour the property. Your written buyer-broker agreement must state the fee your agent expects. Read it carefully. The total U.S. commission average is 5.46%, with roughly 2.70% going to the buyer's side, but that figure is a market reference, not a fixed price. Some agents accept a flat fee for specific services. Know what you are agreeing to before the property is even in play.
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Ask the seller to cover the fee as a concession in the offer. Even if the seller has not offered to pay your agent upfront, you can request it in the purchase contract. Frame it as a seller concession rather than a separate line item. Sellers who are motivated to close, or who are selling without a listing agent, may agree because it costs them nothing extra if the purchase price reflects it.
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Negotiate the fee directly with your agent. Buyer-agent fees are not fixed by law. If the seller will not contribute and you are paying out of pocket, ask your agent whether they will accept a reduced rate or a flat fee for a straightforward transaction. Agents handling a simple off-market deal with less search work may be willing to adjust. Be specific about what you are asking for and why.
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Consider a flat-fee or limited-service arrangement. Some buyers use a real estate attorney or a limited-service agent to handle only the closing paperwork, skipping full buyer representation. This can reduce what you pay in agent fees, but it also removes the negotiation and due diligence support a full-service agent provides. The cost varies by provider and state, and no standard benchmark exists, so get quotes before assuming it saves money. Weigh the fee saving against the risk of negotiating a complex off-market deal without professional representation.
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Factor the fee into your offer price. If you are paying your agent out of pocket and the seller will not budge, you can adjust your offer price downward to offset the cost. This works best when the seller is motivated and the property has been sitting. It is less effective in a competitive situation where other buyers are not carrying the same cost.
For properties in markets with limited public data, like off-market listings on the Sunshine Coast or in Noosa, an agent who negotiates a better purchase price or catches a title issue early can save you far more than their fee. Use these steps to reduce cost where you reasonably can, but weigh any saving against the complexity of the deal.
Do Buyers Pay Realtor Fees in Every State?
Buyers do not automatically pay realtor fees in every state, and the answer depends on local custom, the deal structure, and what you have agreed to in writing. The NAR settlement made one thing consistent across the U.S.: you must sign a written buyer-broker agreement before touring a home, and that agreement must state your agent's fee. But who ultimately covers that fee still varies.
In most U.S. states, it has historically been customary for the seller to pay both the listing agent and the buyer's agent out of the sale proceeds. That custom is shifting. Post-settlement, sellers are no longer required to offer buyer-agent compensation through the MLS, so more buyers are now being asked to cover their agent's fee directly.
Texas is a useful example. Texas has long required written buyer representation agreements, so the state was ahead of the national rule change. Even there, who pays the buyer's agent is negotiated deal by deal. The seller may agree to cover it, the buyer may pay it, or the parties may split it.
The total U.S. commission average sits at 5.46%, with the buyer's side typically around 2.70%. Whether you pay that, the seller pays it, or you negotiate something lower depends on your market, your agent, and how the offer is structured. There is no single answer that applies to every state or every deal.
If you are buying in Australia, the commission framework is different again. Australian buyers' agents charge the buyer directly, typically as a flat fee or a percentage of the purchase price, and that fee is separate from any commission the selling agent receives. The structure is clearer in some ways, but the need to understand what you are paying before you commit applies just as much.
Is the Price Penalty for Off-Market Sellers Worth It for Buyers?
The short answer is: not automatically. The data measures what sellers lose, not what buyers gain.
According to Zillow's 2026 analysis, sellers who listed off the MLS typically sold for 1.3% less than MLS-listed sellers, with the typical per-home loss sitting at roughly $4,230. That is a real cost to the seller. But it does not automatically translate into a discount for you as the buyer.
A seller accepting a lower price may simply be accepting the trade-off of a faster, more private sale. They may still hold firm on their asking price, especially with a motivated buyer and no competing offers. The reduced exposure that costs sellers on average does not guarantee you pay less.
What off-market deals do give you is a different kind of advantage: less competition, more time to conduct due diligence, and room for a more direct negotiation. Whether that produces a better price depends on your preparation, your agent's negotiating skill, and how motivated the seller is to close. The price penalty data is a useful reference point in that negotiation, not a guaranteed outcome.
When a Buyers Agency Makes Sense for Off-Market Deals
Off-market transactions put more responsibility on the buyer than a standard MLS purchase. There is no public listing to compare, no standardized commission framework, and no competitive bidding process to signal fair market value. That is exactly the environment where professional representation earns its cost.
Elevate Buyers Agents is a licensed buyers agency operating across the Sunshine Coast and Noosa regions of Australia. Clients engage the agency to handle the full property buying process, from initial strategy and property search through to inspection, valuation, negotiation, and closing. The agency also provides access to off-market properties not publicly listed on standard portals.
For buyers pursuing off-market properties in areas like Buderim, Mooloolaba, or Peregian Springs, that access matters. Off-market deals in tightly held coastal markets rarely appear on public portals. A Buyer's Agent with established local networks can surface those opportunities before they reach the open market.
On commission, a Buyer's Agent also provides clarity. You know what you are paying, what services that covers, and who is advocating for your interests exclusively. In a negotiation where the seller's agent represents the other side, having your own professional focused entirely on your outcome can make a real difference. For buyers new to off-market transactions, that structure removes a significant layer of uncertainty from a process that already carries enough of it.
Prices and plan limits verified as of October 2026.
FAQs
Is 3% still a normal realtor fee for a buyer’s agent?
The total average U.S. commission sits at 5.46%, with the buyer's agent side averaging 2.70%, according to Clever Real Estate's 2026 data. The NAR settlement changed how compensation is disclosed and negotiated, and rates have not dropped as some predicted. The actual rate depends on your market, your agent, and the complexity of the transaction. Off-market deals may involve different arrangements, including flat fees or reduced rates for simpler transactions.
Can I buy an off-market property without a real estate agent?
Yes, you can buy an off-market property without an agent. Some buyers negotiate directly with the seller or their representative. The risk is that you take on all the due diligence, valuation, and negotiation yourself, without professional support. Off-market deals already lack the price transparency of MLS listings, so buying without representation means you have less information and less negotiating leverage than the other side. For straightforward transactions with a seller you know well, it may work. For anything more complex, the cost of professional representation is usually worth it.
What is a buyer-broker agreement and am I required to sign one?
A buyer-broker agreement is a written contract between you and your buyer's agent. Since the NAR settlement took effect in August 2024, signing one before touring any home has been mandatory for MLS transactions in the U.S. Read it carefully before signing, particularly the fee structure and any exclusivity clauses that limit your ability to work with other agents.
Can the buyer’s agent commission be rolled into the mortgage?
Generally, no. Buyer's agent commissions are typically paid at closing from cash funds, not financed through the mortgage. Some loan structures allow seller concessions that effectively offset the cost, but the commission itself is not a line item lenders add to the loan balance. If you are paying your agent's fee out of pocket, factor it into your closing cost estimates early, since even a negotiated rate produces a meaningful cash requirement at settlement.
What is a pocket listing and are they legal?
A pocket listing is a property sold privately, without being placed on the MLS. Pocket listings are legal in the U.S. Sellers can sell privately without any public marketing, which is how many true off-market deals are structured.
Conclusion
Off-market real estate commission is not governed by a standard rulebook. Who pays the buyer's agent fee, how much, and when it is agreed to are all negotiated directly between the parties. The NAR settlement added one consistent requirement for U.S. buyers: a written buyer-broker agreement before you tour any property, which means the commission conversation happens upfront, not at the offer stage.
Before pursuing an off-market property, confirm your agent's fee in writing, understand whether the seller is likely to contribute, and use current market averages as a reference point in your negotiation. If you are buying in a market with limited public data, like off-market properties on the Sunshine Coast or in Noosa, working with a Buyer's Agent who specializes in those transactions gives you both access and representation from the start.
