Buyer-Broker Agreements & Commission Changes in Denver Real Estate

Introduction: A New Era for Real Estate Transactions

The real estate world has changed dramatically following the National Association of Realtors (NAR) settlement. For decades, buyer agent commissions were baked into MLS listings, giving buyers little transparency about how their agent was compensated. That ended in August 2024, when new rules went into effect.

Now, buyers must sign written agreements with their agents before touring homes, commissions are no longer displayed in the MLS, and compensation has become a point of open negotiation. In Denver, where housing affordability is already stretched, these changes are reshaping how buyers, sellers, and agents approach deals.

What Changed Under the NAR Settlement

According to HousingWire and MarketWatch, the biggest shifts include:

• Mandatory written buyer-broker agreements. Buyers now need to sign a contract with their agent before they can see homes.

• No more commission offers in MLS. Sellers can no longer advertise “buyer agent commission” on MLS listings.

• Negotiated compensation. Buyers and their agents now openly agree on how and whether commissions are paid — hourly, flat fee, or percentage.

The Department of Justice has voiced concerns that overly rigid contracts could stifle competition, but consumer advocates say this new structure finally gives buyers a choice in how they pay for representation.

What This Means for Denver Buyers

For buyers, the days of “free representation” are gone — or at least more complex. In Denver, here’s what this means:

• Know what you’re signing. Expect to see buyer representation agreements (BRAs) that spell out exactly how your agent is compensated. Some are short-term, covering just one showing; others are longer.

• Commissions are flexible. Agents may suggest a percentage fee, but you can negotiate flat fees or even hourly rates.

• Sellers may still contribute. While sellers can’t advertise it on MLS, they can still agree to cover part of your agent’s fee as part of negotiations.

This new transparency helps buyers understand exactly what services they’re paying for — and pushes agents to prove their value upfront.

What Sellers Need to Understand

For Denver sellers, the settlement means you can no longer assume a fixed co-op commission will attract buyers. Instead, strategy matters more:

• Attracting buyers’ agents. While you can’t publish commission on MLS, offering concessions or incentives in private marketing can still make your home more appealing.

• Negotiating at contract stage. Be prepared that a buyer may request seller-paid commission as part of the offer, similar to asking for closing cost credits.

• Pricing correctly matters even more. With buyers facing higher costs, overpricing is more likely to kill interest.

Compass and Redfin both emphasize that sellers should think about “total buyer affordability” rather than just list price — factoring in interest rates, concessions, and potential commission negotiations.

The Denver Perspective

Local agents are already adjusting. Short-term agreements — some as brief as 24 hours — are being used to help hesitant buyers feel comfortable. In high-demand neighborhoods like Berkeley and Wash Park, well-prepared buyers are moving quickly, often working with agents under limited BRAs.

Meanwhile, in the suburbs where inventory is higher, buyers are using this new system to shop more carefully and negotiate harder — not just on price, but also on agent fees.

Common Questions Buyers and Sellers Are Asking

Do I have to pay my buyer’s agent in Denver?
Not always. Buyers can negotiate for sellers to cover part or all of the commission, but this must now happen outside the MLS system.

What does a buyer-broker agreement look like?
In Colorado, agreements typically outline the services provided, the duration of the contract, and the fee structure — which can be hourly, flat fee, or percentage-based.

Does this make buying a home more expensive?
Not necessarily. In many cases, sellers are still contributing, and buyers now have more control over how they pay for services.

Conclusion: Transparency and Strategy

The NAR settlement has created the most significant shift in real estate practices in decades. In Denver, it means buyers must approach home shopping with a clearer understanding of agent agreements, and sellers must think strategically about how to attract offers.

While the adjustment period may feel uncertain, transparency can ultimately benefit both sides. Buyers get clarity on what they’re paying for, and sellers gain a more honest picture of how to position their home.

📞 Questions about how these commission changes affect you in Denver? Contact me, Sallie Simmons, REALTOR® at Compass and Nostalgic Homes, at www.salliesimmons.com or 662-588-2420. I’ll walk you through the details and help you make the smartest move in this new landscape.