Realtor.com's October report came out Wednesday, and the national median asking price fell 2.2% from a year ago to $415,000, marking 12 straight months of sellers asking for less than the year before.

Nobody's panicking, though. New listings fell 7.5%, the steepest drop since September 2023, and Realtor.com’s economists called it “more like a seller pause than an exodus.”

The steepest drop: Austin, at $439,650, down 10.2% in a year, with a price cut on 26.2% of listings. (I'm a Texan who watched Austin act like gravity was optional in 2021, so I'd like everyone to know I saw this coming.) Four other big metros fell at least 5%, and one of them is a $1 million market, so see the other four.

The region that didn't get the memo: The Midwest was the only region where asking prices rose, up 0.8% to $317,500. Chicago's median price is up 4.1%, Columbus 1.2%, and Kansas City 0.9%. (Cleveland and Cincinnati didn't move at all, which is the most Ohio thing I've ever heard.)

Where the sticker is a suggestion: Five metros have price cuts on roughly 3 in 10 listings:

• Salt Lake City (31.8%)
• Indianapolis (31.7%)
• Denver (30.9%)
• Portland (30.6%)
• Phoenix (29.5%)

When that many sellers have already blinked once, the list price is more of an opening bid. On Indianapolis's $305,000 median, a 3% seller credit is $9,150 you can put toward buying down your rate, and a listing that's been sitting longer than the national median of 63 days is the one to ask (my rule of thumb, not Realtor.com's)

Metro Phoenix housing market shifts toward buyers as inventory rises, sales decline and home prices dip in October.

Real estate auction news, strategies, insights, and opportunities from across the country.

Pending home sales decreased 7.3% in September and 11.3% from a year earlier. All four U.S. regions recorded monthly and annual declines, with the West posting the largest decreases. NAR Chief Economist Lawrence Yun said rising mortgage rates weakened market conditions and continued to affect housing affordability

Examines how borrowing costs, locked-in equity, and mortgage products are reshaping market stability—and how purchase timing and terms dictate wealth.

Pending home sales just hit their lowest level on record since the NAR started tracking them in 2001—and they fell in all 50 of the country's biggest metros.

Now that Karoline Leavitt is no longer President Donald Trump's White House Press Secretary, she and husband, Nicholas Riccio, are now focused on real estate development

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If you have bought or sold a home in the last few years, you have probably noticed that the
conversation around real estate commissions sounds very different than it used to. One
acronym sits at the center of that conversation: BAC, short for Buyer's Agent
Compensation.
For decades, most people assumed the answer to "who pays the buyer's agent?" was
simple: the seller did, automatically, as part of a commission built into the listing. That
assumption is no longer a safe one. Rules about how compensation is offered, displayed,
and agreed upon have shifted, and both sides of a transaction are now expected to talk
about it openly.
This guide explains what BAC is, how it works today, and what Arizona sellers and buyers
should know before they list, tour, or make an offer. We will walk through five key points,
answer the question that every seller eventually asks, and finish with practical steps you
can use right away.
A quick note before we begin: this article is for general education and is not legal advice.
Rules and forms can change, so confirm the details for your own situation with a licensed
Arizona real estate professional or an attorney.
Who Pays the Buyer's Agent? A Complete Guide to BAC in Arizona
Page 1 of 10 WhatIsBAC (Buyer's Agent Compensation)?
Buyer's Agent Compensation is simply the payment a buyer's real estate agent receives
for representing the buyer in a purchase. That representation includes a lot of work:
searching for homes, scheduling and attending showings, analyzing comparable sales,
writing and negotiating offers, coordinating inspections and the appraisal, and guiding the
buyer through to closing.
The important question has never been whether a buyer's agent gets paid. They do. The
question is who pays, how much, and how that gets agreed upon.
Historically, compensation for the buyer's agent was typically offered by the listing side
and displayed in the Multiple Listing Service (MLS), the database that real estate
professionals use to share listings. Because it was displayed and routine, many consumers
never thought about it. It was simply "how it worked."
Today the process is more transparent, and more negotiable. That is why every buyer and
seller benefits from understanding BAC before they ever sign a document.
WhyBAC HasBecome Such aBigTopic
The national conversation about commissions changed significantly following a landmark
legal settlement involving the National Association of REALTORS® (NAR). Practice
changes tied to that settlement took effect in August 2024 and reshaped how buyer's
agents are compensated and how that compensation is communicated.
Without getting lost in the legal details, three shifts matter most to everyday sellers and
buyers:
Compensation offers can no longer be advertised through the MLS. Listings on the
MLS are no longer the place where a seller's offer of buyer-agent compensation is
published.
Buyers are expected to have a written agreement with their agent. Before touring
homes with an agent, buyers generally need to sign an agreement that spells out what
the agent will do and how they will be paid.
Compensation is explicitly negotiable. Neither side should assume a set percentage.
Amounts are agreed upon between the parties.
The result is a market where the money conversation happens earlier and more directly.
For people who feel comfortable with clarity, that is good news. For people who were
never told this was negotiable, it can feel like a surprise. The goal of this guide is to make
Who Pays the Buyer's Agent? A Complete Guide to BAC in Arizona
Page 2 of 10 sure you are never surprised.
Point 1: Sellers Are Not Required to PayBAC
This is the point that surprises many homeowners the most: sellers are not required to
pay buyer's agent compensation.
There is no law that says a seller must pay the agent who represents the buyer. Paying, or
offering to pay, is a business decision, not an obligation. A seller who lists their home can
choose to offer compensation to the buyer's agent, offer a partial amount, or offer nothing
at all.
Why does this matter? Because for many years, sellers who were never told they had a
choice simply accepted a bundled commission that included an amount for the buyer's
side. Understanding that BAC is optional gives sellers a powerful starting point for pricing
their home, planning their net proceeds, and deciding how to compete in their local
market.
That said, "not required" does not automatically mean "not wise." We will come back to the
strategy of whether to offer compensation shortly. For now, the key takeaway is that the
choice belongs to you.
Point 2:Buyers Agree to CompensationWithTheir Agent
The second key point flips the old assumption on its head: buyers agree to compensation
directly with their own agent.
Under current practices, a buyer who wants professional representation sits down with
an agent and signs a written buyer representation agreement. That document typically
spells out the services the agent will provide, the length of the agreement, and,
importantly, how and how much the agent will be paid.
This is a healthy change for buyers in several ways:
Transparency. You know exactly what your agent earns before you begin touring
homes.
Negotiation power. Because compensation is an agreed term, buyers can ask
questions, compare agents, and discuss structure.
Aligned expectations. The agent knows what the engagement covers, and the buyer
knows what they are getting.
Who Pays the Buyer's Agent? A Complete Guide to BAC in Arizona
Page 3 of 10 Buyers should read any representation agreement carefully and ask about anything
unclear: how long the agreement lasts, what happens if the agent is paid by the seller, and
what happens if the seller offers less than the agreed amount. A good agent will welcome
these questions.
Point 3: Sellers Can Still Cover Some or All ofIt
Here is where the picture gets balanced. Even though sellers are not required to pay BAC,
sellers can still choose to cover some or all of it.
Many sellers do exactly that, because it can make their home more attractive to buyers.
Think about it from the buyer's perspective. A buyer who has just stretched to afford a
down payment, closing costs, and moving expenses may not have extra cash to pay an
agent out of pocket. If a seller offers to help with buyer-agent compensation, that buyer
may find the home more accessible than a similar one where no help is offered.
There are several common ways this plays out:
The seller offers a set amount or percentage to the buyer's agent as part of the deal.
The seller offers a credit to the buyer (often called a seller concession) that the buyer
can apply toward closing costs, which may include their agent's fee.
The seller and buyer negotiate it as part of the offer, treating compensation as one
piece of the overall price and terms.
None of these approaches is automatically right or wrong. The best choice depends on
your local market, your home's appeal, how quickly you need to sell, and your financial
goals. The important thing is that it is a deliberate decision, not a default.
Point 4:BAC Is No Longer AdvertisedThrough the MLS
The fourth point is a practical one: BAC is no longer advertised through the MLS.
In the past, a buyer's agent could look at an MLS listing and immediately see what
compensation the seller was offering. That visibility is gone from the MLS itself. Sellers
who want to offer compensation can still do so, but it is communicated outside the MLS,
through direct conversations, written agreements, or negotiated terms in the offer.
What does that mean in real life?
Who Pays the Buyer's Agent? A Complete Guide to BAC in Arizona
Page 4 of 10 Sellers should decide their approach before listing. If you plan to offer compensation,
think through the amount and how you will communicate it to interested buyers and
their agents.
Buyers should ask directly. Do not assume a listing includes or excludes
compensation. Your agent can ask the listing side what the seller is willing to do.
Agents should have clear conversations early. Open communication prevents last-
minute disagreements.
This is also why working with a listing service that understands the new landscape
matters. A well-prepared seller can explain their position confidently when a buyer's
agent calls, rather than scrambling to figure it out mid-negotiation.
Point 5: ClarityEarly Helps Avoid Surprises Later
If there is one theme that runs through every change in this space, it is this: clarity early
helps avoid surprises later.
Most frustrating real estate moments come from misunderstandings that surfaced too
late. A buyer discovers at the offer stage that they owe their agent money they did not
expect. A seller learns during negotiation that buyers are asking for help with agent fees.
A closing is delayed because everyone assumed someone else was handling a cost.
All of these are avoidable with early, honest conversations. Here is a simple framework.
For sellers:
Decide whether you are willing to offer buyer-agent compensation, and in what range.
Understand how that choice affects your estimated net proceeds.
Be ready to discuss it, and to negotiate it, when offers come in.
For buyers:
Interview agents and ask exactly how they are paid.
Read your representation agreement before signing.
Include compensation in your overall budget, alongside your down payment and
closing costs.
When everyone knows the plan, the transaction runs smoother, and the relationships
involved stay positive.
Who Pays the Buyer's Agent? A Complete Guide to BAC in Arizona
Page 5 of 10 Point 6:The QuestionEvery Seller Asks
The infographic that inspired this article closes with a sixth point, phrased as a question
that nearly every seller has wondered about:
What buyer's agent is going to show a home to a buyer without the buyer paying
them if the seller does not?
It is a fair question, and it deserves an honest, balanced answer.
The reality is that real estate agents are professionals who work for compensation. Under
current practices, a buyer's agent is expected to have an agreement with their client
about how they will be paid. So the practical question becomes: where will that payment
come from?
There are really three possibilities:
1. The seller offers compensation, and the buyer's agent is paid at least in part from that
offer.
2. The buyer pays their agent directly, according to the written agreement they signed.
3. The two share it, often through a negotiated seller concession or credit.
If a seller offers nothing, some buyers will pay their agent themselves, and others may
choose to focus on homes where the seller is offering help. In a market with plenty of
buyers and limited inventory, a seller offering nothing may lose very little. In a slower
market, or for a home that needs to stand out, offering some compensation may widen the
pool of interested buyers.
There is no universal answer, and anyone who tells you otherwise is oversimplifying. The
smart approach is to look at your local market, your timeline, and your goals, and make a
decision with open eyes.
How Flat-Fee MLS Listings FitInto the Picture
This is where manyArizona sellers find real value. A flat-fee MLS listing lets a homeowner
get their property on the MLS for a set, upfront fee rather than paying a traditional
percentage-based listing commission.
Because BAC is now a separate, negotiable decision, the flat-fee model fits naturally with
the way the market works today:
Who Pays the Buyer's Agent? A Complete Guide to BAC in Arizona
Page 6 of 10 You control the cost of listing. A flat fee means your listing cost is known upfront and
does not scale with your sale price.
You decide your BAC strategy. You choose whether to offer compensation to the
buyer's agent, how much, and in what form.
You keep MLS exposure. Your home can still appear in the database that buyers'
agents and major real estate websites rely on.
Flat-fee service levels vary by company, so it is worth reading exactly what is included:
listing photos, yard signs, lockboxes, showing coordination, offer support, and help with
contracts and closing paperwork. Mountain Lake Realty, an Arizona-licensed brokerage,
provides flat-fee MLS listing services to sellers across the state, and sellers can explore
options at azflat.com.
Whichever provider you choose, ask them how they handle questions from buyer's agents
about compensation, and make sure you understand who is responsible for those
conversations.
Strategies for Arizona Sellers
Arizona is a diverse market. A home in the Phoenix metro area, a retirement community in
Prescott, a vacation property near a lake, and a rural parcel all behave differently. Here are
strategies that sellers can adapt to their own circumstances.
1. Know your local market conditions
How many comparable homes are for sale? How quickly are they selling? In a fast-moving
market, buyers have fewer alternatives and sellers hold more leverage. In a slower market,
incentives matter more.
2. Calculate your net proceeds under several scenarios
Before you list, run the numbers three ways: offering no BAC, offering a partial amount,
and offering a fuller amount. Seeing the difference in your take-home helps you decide
with confidence.
3. Consider offering compensation as a marketing tool
If your goal is the widest possible buyer pool, offering some assistance can make your
home accessible to buyers who are cash-constrained at closing. Think of it as part of your
pricing and marketing strategy.
Who Pays the Buyer's Agent? A Complete Guide to BAC in Arizona
Page 7 of 10 4.Be prepared to negotiate
Even if you decide not to advertise or offer compensation up front, buyers may request
help with agent fees or closing costs in their offer. Decide in advance how you would
respond.
5. Put everything in writing
Whatever you agree to, make sure it is clearly documented in the purchase contract or
related paperwork so there is no confusion at closing.
6. Choose a listing partner who explains, notjust sells
The best partners will walk you through your options, answer your questions plainly, and
help you communicate your position to buyer's agents.
Tips for Arizona HomeBuyers
Buyers have an equally important role in this new landscape. Here is how to protect
yourself and get the most from your agent relationship.
Ask about compensation up front. A professional agent will be happy to explain how
they are paid and what happens in different scenarios.
Understand your written agreement. Know the length of the agreement, the services
included, and how it can be changed or ended.
Budget for it. If you may be responsible for some or all of your agent's compensation,
include it in your total cost planning.
Ask your agent to request seller help. Sellers may be willing to contribute, especially if
it helps close the deal. It never hurts to ask.
Compare homes on total cost. A slightly higher price with a seller concession might
cost less overall than a lower price with nothing offered. Look at the whole picture.
Talk to your lender early. Lenders have rules about what seller contributions can cover
and how much, so check how any concession fits your loan.
Common Myths AboutBAC
Myth: Sellers must always pay the buyer's agent. Fact: Sellers are not required to pay
BAC. It is their choice.
Who Pays the Buyer's Agent? A Complete Guide to BAC in Arizona
Page 8 of 10 Myth: Buyers never have to pay their agent anything. Fact: Buyers agree to
compensation with their own agent, and in some cases may pay part or all of it directly.
Myth: If I do not offer BAC, no one will show my home. Fact: Many buyers and agents will
still engage, but the pool of interested buyers can be affected by your market and your
approach. It is a strategic decision.
Myth: Commissions are set by law. Fact: Compensation is negotiable. No fixed rate is
required.
Myth: The MLS still shows what the seller is offering. Fact: BAC is no longer advertised
through the MLS, so it requires direct communication.
Frequently Asked Questions
Who pays the buyer's agentin Arizona?
It depends on the agreement. A seller may choose to offer compensation, the buyer may
pay their agent directly, or the two may share the cost through a negotiated concession.
Sellers are not required to pay.
Can a seller refuse to pay the buyer's agent?
Yes. A seller is not required to pay BAC. Buyers who work with an agent will then need to
arrange payment under their own agreement, or negotiate with the seller.
Is buyer's agent compensation negotiable?
Yes. There is no required or standard rate. Amounts are agreed upon by the parties
involved.
Can a buyer ask the seller to cover their agent's fee?
Yes. Buyers can include a request for seller assistance in their offer. Whether the seller
agrees is a matter of negotiation.
Why isn'tBAC shown on MLS listings anymore?
Following the practice changes that took effect in August 2024, offers of compensation
are no longer published through the MLS. Compensation is now discussed and agreed
upon outside of it.
Who Pays the Buyer's Agent? A Complete Guide to BAC in Arizona
Page 9 of 10 Does a flat-fee MLS listing still get exposure to buyers?
Yes. A flat-fee MLS listing places your home in the MLS, where buyers' agents and popular
real estate websites find listings. Confirm the specifics with your provider.
Do I need a written agreementto work with a buyer's agent?
Under current practices, buyers are generally expected to sign a written agreement with
their agent before touring homes together. Ask your agent for the exact requirements and
terms.
KeyTakeaways
The BAC conversation can feel complicated, but it boils down to a handful of clear ideas:
1. Sellers are not required to pay BAC.
2. Buyers agree to compensation with their agent.
3. Sellers can still cover some or all of it, and often it makes strategic sense.
4. BAC is no longer advertised through the MLS, so communication matters more than
ever.
5. Clarity early helps avoid surprises later.
6. Agents are professionals, so the real question is not whether they are paid, but who
pays and how it is agreed upon.
Ready to SellWith Confidence?
Understanding BAC is one of the smartest steps you can take before listing a home in
Arizona. When you know your options, you can price strategically, protect your net
proceeds, and speak confidently with buyers and their agents.
If you are considering selling, Mountain Lake Realty can help you get your home on the
MLS with a flat-fee listing and walk you through your choices along the way. Visit
azflat.com to learn more and get started.
This article is provided for general informational purposes only and does not constitute
legal, tax, or financial advice. Real estate practices, forms, and regulations can change.
Consult a licensed

As the longtime ARMLS CEO grapples with an incurable disease, he shares his thoughts on facing the unexpected, industry fights and how the MLS should evolve.