· By Juan Murray
Realtor Commissions in Greater Boston After NAR Settlement
Broker commissions in Greater Boston are negotiable, and no law or rule sets the amount. Since NAR's settlement practice changes took effect on August 17, 2024, buyers working with an agent sign a written agreement before touring, and offers of buyer-broker compensation can't appear on NAR-affiliated MLSs. MLS PIN, the main MLS in Massachusetts, removed blanket offers of compensation under its own settlement on September 2, 2025. Sellers choose whether to offer compensation to a buyer's broker, pay only their listing broker, or offer a concession toward the buyer's costs.
What did the NAR settlement change for home sellers in Greater Boston?
It changed how buyer-broker compensation is offered and disclosed, not whether commissions are negotiable. NAR's practice changes took effect August 17, 2024. First, offers of buyer-broker compensation can no longer be made on NAR-affiliated MLSs. Second, buyers working with an agent must sign a written agreement before touring a home, in person or by live virtual tour, and that agreement spells out what the buyer's broker will be paid. MLS PIN is independently owned rather than run by a Realtor association, and it made its own change under the settlement of a separate lawsuit (Nosalek): as of September 2, 2025, blanket offers of cooperative compensation can no longer be entered or viewed on MLS PIN, and listing agreements must tell sellers they are not required to offer compensation to cooperating brokers. For every line that comes off your proceeds at closing, see how much you'll actually net from a Boston home sale. For the smoke and CO certificate you'll need regardless of commission structure, see Massachusetts smoke and CO detector certificate requirements for sellers.
What did not change: commissions are negotiable. NAR states that compensation is not set by law and is fully negotiable.
Key Takeaways
- Since August 17, 2024, buyers working with an agent sign a written agreement before touring, and buyer-broker compensation offers can't appear on NAR-affiliated MLSs.
- As of September 2, 2025, blanket offers of cooperative compensation can no longer be entered or viewed on MLS PIN.
- Sellers can pay their listing broker only, have the listing broker share part of the fee with the buyer's broker, or offer a seller concession toward the buyer's costs.
- Commissions are not set by law and remain negotiable.
- The Massachusetts deed excise is $4.56 per $1,000 everywhere except Barnstable County, customarily paid by the seller.
What are my options as a Greater Boston seller after the NAR settlement?
You choose explicitly how, or whether, the buyer's broker is paid.
What This Means for You as a Greater Boston Seller
You now make these choices explicitly. Your options include: pay your listing broker only, with the buyer paying their own broker; agree in your listing agreement that your listing broker will share part of the fee with the buyer's broker (not published on the MLS); or offer a seller concession the buyer can apply toward their costs, subject to lender rules and negotiation. None of these is automatic.
Does the Settlement Mean Commissions Are Lower Now?
Not necessarily. The settlement changed how compensation is negotiated and disclosed, not what the market will bear. What it does give you is a clearer conversation. You negotiate the listing-side fee in your listing agreement, and any buyer-broker compensation you offer is a separate, explicit decision.
What closing costs do Massachusetts sellers pay besides commission?
The deed excise, attorney fees if you hire your own, recording fees, and several inspection and certificate costs.
Commission is usually the largest line item for a seller, but not the only one. In Massachusetts, an attorney must play a meaningful role in closing a real estate sale; on financed deals this is usually the lender's closing attorney.
Massachusetts Deed Excise Tax
Massachusetts imposes a deed excise on the transfer of real estate under M.G.L. c.64D §1: $2 per $500 of the price plus a 14% surtax, or $4.56 per $1,000, everywhere in the state except Barnstable County. The statute doesn't say who pays, but in Massachusetts it is customarily paid by the seller.
Other Common Seller-Side Cost Categories
- Seller's attorney fees, if you hire your own attorney for contract review, title issues, and closing.
- Recording fees for documents such as a mortgage discharge, charged by the county Registry of Deeds.
- Municipal lien certificate and final utility bills, including any final water and sewer charges.
- Smoke and CO detector inspection fee. Massachusetts law (M.G.L. c.148, §26F and §26F½) requires a local fire department inspection for smoke and carbon monoxide detectors when a home is sold.
- 6(d) certificate for condos. A statement of unpaid common charges under M.G.L. c.183A, §6(d).
- Title 5 septic inspection for properties with on-site septic systems, generally within two years before the transfer (310 CMR 15.301).
| Cost Category | Who Typically Pays | Negotiable? |
|---|---|---|
| Listing broker commission | Seller | Yes, set in listing agreement |
| Buyer-broker compensation | Seller, buyer, or split | Yes, not published on the MLS |
| Massachusetts deed excise tax ($4.56/$1,000) | Seller, by custom | Statute doesn't assign it; allocation is by custom and contract |
| Seller's attorney fees | Seller | Yes, negotiated with the attorney |
| Smoke/CO detector inspection | Seller, by custom | Can be addressed in the Purchase and Sale Agreement |
| 6(d) certificate (condos) | Seller, by custom | Can be addressed in the Purchase and Sale Agreement |
| Municipal lien certificate/utility bills | Seller | Amounts owed are fixed; allocation negotiable |
| Recording fees | Varies by document | Customary allocations; negotiable |
What disclosures and requirements do Massachusetts sellers need to know?
Several specific requirements apply to many sales: the Massachusetts Property Transfer Lead Paint Notification, given before the Purchase and Sale Agreement (plus the federal disclosure for homes built before 1978); the smoke and CO certificate; a Title 5 inspection for properties on septic; and a 6(d) certificate for condo sales. For 1 to 4 unit homes, condos, and co-ops where the first Offer to Purchase or Purchase and Sale Agreement is signed after October 15, 2025, sellers and agents also can't condition acceptance on a buyer waiving or limiting a home inspection (M.G.L. c.143 §101). Ask your closing attorney which apply to your sale.
FAQ
How does the NAR settlement change who pays the buyer's agent in Boston now?
Sellers are not required to offer buyer-broker compensation, and offers can't be published on the MLS, including MLS PIN since September 2, 2025. Sellers can agree to pay the buyer's broker through their listing agreement, let the buyer pay their own broker, or offer a seller concession toward the buyer's costs. None of these is automatic.
If I'm selling a condo in Somerville, do I still have to pay the buyer's agent, or can the buyer pay their own broker?
You are not required to pay the buyer's agent. The buyer signs a written agreement with their broker that spells out compensation before touring. You can leave the buyer to pay their own broker, offer a concession toward buyer costs, or agree to a seller-paid amount in your listing agreement.
What closing costs does a seller pay in Massachusetts besides the real estate agent commission?
The main categories are the Massachusetts deed excise tax ($4.56 per $1,000 of sale price, customarily paid by the seller), attorney fees if you hire your own attorney, recording fees, the smoke and CO detector inspection fee, a municipal lien certificate and final utility bills, a 6(d) certificate for condos, and a Title 5 inspection for homes on septic.
What is the Massachusetts deed excise tax, and why is the seller usually the one paying it at closing?
It is a state excise on the transfer of real estate under M.G.L. c.64D §1, $4.56 per $1,000 of the price everywhere except Barnstable County. The statute doesn't say who pays, but by long-standing Massachusetts custom the seller does, and it is collected at closing when the deed is recorded.
Does the NAR settlement mean commissions are lower now in Greater Boston, or just that they're negotiated differently?
Mainly the latter. The changes affect how and where compensation is offered and disclosed; they don't cap or set rates. Commissions remain negotiable between sellers and their listing brokerage, and what you pay depends on what you negotiate.
The bottom line: commissions in Greater Boston remain negotiable, and after the NAR settlement you decide explicitly in your listing agreement whether and how the buyer's broker is paid.
Sources
- NAR, consumer guide to written buyer agreements: https://www.nar.realtor/the-facts/consumer-guide-written-buyer-agreements
- NAR, settlement FAQs: https://www.nar.realtor/the-facts/nar-settlement-faqs
- HousingWire, MLS PIN settlement business practice changes go into effect Tuesday (Aug. 29, 2025): https://www.housingwire.com/articles/mls-pin-settlement-business-practice-changes-go-into-effect-tuesday/
- Banker & Tradesman, Compass-NAR confrontation could pass over most of Mass. (July 11, 2025): https://bankerandtradesman.com/compass-nar-confrontation-could-pass-over-most-of-mass/
- M.G.L. c.64D §1 (deed excise): https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter64D/Section1
- 310 CMR 15.301 (Title 5 inspection at transfer): https://www.law.cornell.edu/regulations/massachusetts/310-CMR-15-301
- M.G.L. c.143 §101 (home inspection waivers): https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXX/Chapter143/Section101
- Harvard Law School, Joseph Singer on REBA v. NREIS (attorney role at closings): https://faculty.law.harvard.edu/joseph-singer/2011/04/26/massachusetts-supreme-judicial-court-requires-lawyers-for-the-lender-to-be-present-and-active-at-real-estate-closings/
Have questions? Let's connect.
About Juan Murray
Juan Murray is a Boston broker associate with more than 30 years of experience helping buyers, sellers, and investors across Greater Boston, personally leading every transaction from the first conversation through closing.
RE/MAX Real Estate Center · (978) 581-0801
Equal Housing Opportunity. Juan Murray is licensed as a Broker in Massachusetts, regulated by the Massachusetts Board of Registration of Real Estate Brokers and Salespersons. This article is general information only and does not constitute legal, tax, or financial advice. Confirm your specific costs and obligations with your closing agent, tax advisor, or lender.
