Who pays the realtor commission in Michigan?
Since the August 2024 industry rule changes, no one is automatically on the hook for the buyer’s agent — and commissions were never set by law. Here’s how it actually works in Michigan now, for buyers and sellers, in plain English.
- Commissions are fully negotiable — never set by law
- Sellers aren't required to pay the buyer's agent anymore (but often still do)
- Buyers now sign a written agreement setting their agent's fee before touring homes
The short answer
In Michigan, the real estate commission is whatever the parties agree to— it is negotiable and has never been fixed by law. What changed in August 2024, when the National Association of Realtors’ legal settlement took effect, is how the buyer’s agent gets paid:
- Offers of buyer-agent compensation are no longer posted on the MLS.
- A buyer now signs a written buyer-agency agreementthat states their agent’s fee before touring homes— and the amount must be specific, not open-ended.
- Sellers are no longer requiredto pay the buyer’s agent — though many still choose to, because it attracts more buyers.
How the buyer's agent actually gets paid now (three ways)
In practice, buyer-agent compensation flows one of three ways in a Michigan deal:
- The seller offers to pay it (still the most common).A seller can offer buyer-agent compensation to widen their buyer pool — it just isn’t advertised on the MLS anymore, so it’s negotiated deal-by-deal.
- It’s written in as a seller concession.The buyer asks the seller to credit their agent’s fee as part of the offer, the same way concessions cover closing costs.
- The buyer pays their own agent directly,per the written buyer-agency agreement they signed, if the seller doesn’t cover it.
Bottom line: it’s a negotiation, not a fixed rule — and a good agent will tell you exactly who’s paying what before you sign anything.
If you're selling
You negotiate your listing agent’s fee directly — it’s a line item, not a fixed percentage. Separately, you decide whetherto offer compensation to the buyer’s agent. Offering something is often worth it: it keeps your home in front of the widest set of buyers and keeps deals simple. Historically total commissions ran around 5–6% split between the two sides; today each side is negotiated on its own, so your total depends on what you agree to. See how it fits your bottom line with the net proceeds calculator.
If you're buying
Before an agent can tour homes with you, you’ll sign a written buyer-agency agreementthat spells out their fee and how long it runs. Read it — the fee is negotiable, and you can negotiate for the seller to cover it in your offer. The upside of the new rules is transparency: you know your agent’s compensation up front instead of it being buried in the MLS. New to the process? Start with how to buy a home in Michigan.
Realtor commission in Michigan — common questions
Do sellers still pay the buyer's agent in Michigan?
Not automatically. Since the NAR settlement took effect in August 2024, sellers are no longer required to pay the buyer's agent. Many sellers still choose to offer buyer-agent compensation to attract more buyers, but it's now negotiated deal-by-deal rather than posted on the MLS.
How much is realtor commission in Michigan?
There is no legally set rate — commissions are fully negotiable. Historically, total commissions ran around 5–6% of the sale price split between the listing and buyer sides. Today each side is negotiated separately, so the total depends entirely on what the parties agree to.
Do I have to sign a buyer-agency agreement in Michigan?
Yes. Under the August 2024 rules, a buyer must sign a written buyer-agency agreement that states the agent's compensation before touring homes with that agent. The fee must be a specific amount or rate and is negotiable.
Can the buyer's agent commission be a seller concession?
Yes. A buyer can ask the seller to cover the buyer's agent compensation as a concession written into the offer — similar to asking a seller to credit closing costs. Whether the seller agrees is part of the negotiation.
Not sure what you'll actually pay?
Commissions are negotiable — and we’ll walk you through your options honestly before you sign anything, whether you’re buying or selling.
2032 E Square Lake Rd Ste 400A, Troy, MI 48085