Since 2024, the Seller May Not Cover Your Agent. The New Commission Rule Every VA Buyer Should Know.

After the 2024 National Association of Realtors settlement, there is no automatic answer to who pays the buyer's agent. Commissions are negotiated separately now and no longer posted on the MLS. The seller can pay it, the buyer can pay it, or they can split it. For veterans, the big change: VA buyers can now pay their own agent, which the old rules banned.

If you are a military buyer or a first-time buyer getting ready to use the VA loan in North County San Diego, whether you are PCSing in or already settled here, this is one of the most important shifts in years, and a lot of veterans have not heard about it yet. The way real estate agents get paid changed in 2024, and the VA had to change its own rules to keep veterans competitive. Here is what actually happened and what you do about it.

What changed in 2024, in plain terms

The settlement reshaped how buyer-agent pay is handled. Three things matter to you:

• The MLS no longer shows buyer-agent pay. Listings used to advertise what the seller would pay a buyer's agent. That is gone. Compensation is now worked out deal by deal.
• You sign a buyer-broker agreement before touring. Before an agent shows you homes, you both sign an agreement spelling out how that agent gets paid. This is now standard.
• Commissions are openly negotiable. Rates were always negotiable, but now it is out in the open. A buyer's agent fee commonly runs about 2 to 3 percent of the purchase price.

The part that matters most for veterans

For years, the VA flatly prohibited a veteran from paying their own buyer-agent fee. After the settlement, that prohibition would have left VA buyers unable to hire representation if a seller chose not to pay. So the VA stepped in to keep veterans and military buyers competitive in the new system. Through a policy change effective for contracts signed on or after August 10, 2024, VA buyers can now pay their own agent. Here is how that rule works:

• You can pay your buyer's agent directly. This reverses the old ban. A veteran, active-duty service member, or eligible surviving spouse using the VA loan can now cover a buyer-agent fee.
• The fee has to be reasonable and customary. It needs to line up with what is normal for your local market, not an inflated number.
• You cannot finance it into the loan. This one trips people up. The commission has to be paid in cash at closing. It does not get rolled into the VA loan amount, so you budget for it the same way you budget for other closing costs.
• It goes in writing. The buyer-broker agreement has to be in your loan file, and the fee is itemized on your Closing Disclosure.
• The seller can still pay it, and this is the good part. If you negotiate seller-paid agent compensation, it does not count against the VA's 4 percent cap on seller concessions. That is a real advantage worth using on every offer.

One note on the status. This VA rule came in as a temporary measure while the agency works on permanent guidance. It has been the operating rule since August 2024, but confirm the current terms with your lender when you start, since formal rules are still being finalized.

How to handle it as a VA or first-time buyer

The new setup rewards buyers who plan ahead. Walk in with these four moves:

• Ask for seller-paid compensation in every offer. It is still common, especially on homes that have been sitting. Make it part of the negotiation from the start.
• Read the buyer-broker agreement before you sign. Look at the fee, the length of the agreement, and whether it includes an offset, meaning if the seller pays, your out-of-pocket drops. Ask for that offset.
• Keep cash ready as a backup. If the seller will not cover it, you will need to pay at closing. Plan for roughly 2 to 3 percent so it is not a surprise. For a PCS buyer on a tight timeline, having this lined up early keeps your close on schedule.
• Work with a VA-experienced agent and lender. This is new territory, and the people who handle VA buyers every week know how to structure the offer so you stay competitive without overpaying.

Common questions about the new commission rules

Do buyers have to pay their own agent now?

Not necessarily. The seller can still pay the buyer's agent, and many do. What changed is that it is no longer advertised or guaranteed, so it has to be negotiated. If the seller does not cover it, a VA buyer is now allowed to.

Can a VA buyer roll the agent fee into the loan?

No. The buyer-agent commission cannot be financed into the VA loan. It has to be paid in cash at closing, which is why it belongs in your budget from day one.

Does seller-paid commission count against the VA's concession cap?

No, and this is the part to use. When a seller pays your agent's fee, it does not count against the VA's 4 percent seller concession limit, so it does not crowd out other help you might negotiate.

How much is a buyer's agent fee?

It is negotiated per deal, but it commonly lands around 2 to 3 percent of the purchase price. Since it is negotiable, it is worth discussing up front when you sign your buyer-broker agreement.

The takeaway

The headlines made this sound like bad news for buyers. For veterans, it is mostly the opposite. You finally have the right to pay your own agent if you need to, and the seller-paid route still exists and still works in your favor. The buyers who lose here are the ones who do not know the rule. If you are a military buyer or first-time buyer planning to use the VA loan in North County San Diego, call me at (619) 485-8293 and I will walk you through how to structure your offer so this works for you, not against you.

You can find more on the VA loan, closing costs, and what buyers run into on the blog, or reach out any time through the connect page.

This content is for informational purposes only and is not legal, tax, or financial advice. Commission rules reflect the 2024 NAR settlement and VA Circular 26-24-14, which remained in effect in 2026 as temporary guidance pending permanent rulemaking. Confirm current terms with your lender and agent. All real estate services comply with NAR, HUD, and California DRE regulations.