Realtor Commissions in Greater Boston After NAR Settlement

How did the NAR settlement change real estate commissions for Greater Boston sellers?

Since the National Association of REALTORS® settlement took effect in August 2024, broker commissions in Greater Boston are fully negotiable, and buyer-agent compensation can no longer be advertised through MLS listings. Sellers now choose, in their listing agreement, whether to offer compensation to a buyer’s broker, pay only their listing agent, or structure a seller concession toward the buyer’s costs. No rule or law sets a commission amount; the rate you pay is whatever you and your listing brokerage agree to in writing.

What the NAR Settlement Actually Changed (and What It Didn’t)

Here’s the honest version of what happened: in March 2024, NAR announced a proposed settlement of federal antitrust litigation. The two biggest operational changes, effective August 2024, were straightforward.

First, offers of buyer-broker compensation can no longer be published on the MLS. In Greater Boston, that means MLS Property Information Network (MLS PIN), the broker-owned MLS that serves most of this market, no longer carries compensation fields the way it used to. MLS PIN was itself a defendant in related federal antitrust litigation, and its own policy changes reflect the same framework.

Second, buyers must now sign a written buyer-broker agreement before touring homes with an agent. That agreement spells out what the buyer’s broker expects to be paid and how.

What didn’t change: commissions are still fully negotiable. NAR is explicit that the settlement does not set or cap commission amounts. No law does either. The Massachusetts Board of Registration of Real Estate Brokers and Salespersons and Massachusetts consumer protection guidance both confirm that fee arrangements must be clearly disclosed in listing and buyer representation agreements, and that they are negotiated between the client and the brokerage, period.

What this means for you as a Greater Boston seller

You now have more explicit choices than before. The Greater Boston Real Estate Board listing agreement forms treat commission amounts and any sharing with cooperating brokers as negotiated terms. Your practical options, as described in legal analyses of the NAR settlement, include:

• Pay your listing broker only. The buyer pays their own agent directly, as agreed in the buyer-broker agreement.
• Pay your listing broker, who then shares with the buyer’s broker. The seller agrees to this structure in the listing agreement; the split is not published on MLS.
• Offer a seller concession that the buyer can apply toward their broker’s fee or other closing costs, subject to lender rules and negotiation. (I walk through how concessions work in more detail in my post on seller concessions vs. price reductions in Boston.)

Every one of those structures is legal. None is automatic. The right one for your situation depends on your home, your market segment, and what buyer activity looks like when you list. That’s not a generic answer; it’s the honest one.

Does the settlement mean commissions are lower now?

Not necessarily, and I want to be straight with you here. The settlement changed how compensation is negotiated and disclosed, not what the market will bear. In a tight market with limited inventory, buyer demand still shapes what sellers choose to offer. The Greater Boston Association of REALTORS® reported that as of Q1 2025, single-family inventory in Greater Boston was down year-over-year and pending sales remained relatively stable despite higher mortgage rates, conditions that don’t automatically push seller-paid compensation to zero.

What the settlement does give you is a cleaner conversation. You negotiate the listing-side fee in your listing agreement. Any buyer-broker compensation you choose to offer is a separate, explicit decision, not a default buried in MLS fields. That transparency is genuinely useful.

Massachusetts Closing Costs Sellers Pay Beyond Commission

Commission is usually the largest line item for a seller, but it’s not the only one. Massachusetts has a specific closing process; it’s an attorney-closing state, meaning real estate closings are conducted by attorneys, not title or escrow companies. The closing attorney (often representing the lender) coordinates title work, document preparation, and all disbursements on closing day.

Here are the cost categories Greater Boston sellers typically encounter. I’m giving you categories and how they work, not dollar estimates, because your actual numbers depend on your sale price, property type, and what you negotiate in the purchase and sale agreement. For your personalized picture, that’s a conversation to have with your attorney and your listing agent before you price.

Massachusetts deed excise tax

This one is statutory and non-negotiable on the seller’s side. Massachusetts imposes a deed excise tax on the transfer of real estate, calculated at $4.56 per $1,000 of consideration in most Greater Boston counties, Suffolk, Middlesex, Norfolk, and Essex. The Department of Revenue specifies that the excise is imposed on the grantor (the seller) and collected by the Registry of Deeds at recording. Local practice is for the closing attorney to compute the amount from the final sale price and present it as a seller charge on the closing disclosure.

Some sellers ask whether this is negotiable. The tax itself isn’t; it’s imposed on you as the grantor by statute. How it’s reflected in your net proceeds relative to the purchase price is a separate question your attorney can address.

Other common seller-side cost categories

Beyond commission and the deed excise tax, sellers in Greater Boston commonly encounter:

• Seller’s attorney fees for contract review, title resolution, and closing support. Massachusetts closings require an attorney; budget for this as a fixed cost.
• Recording fees for the deed and related documents, charged by the county Registry of Deeds.
• Municipal lien certificate fees and utility payoffs. In Boston, sellers must arrange a final water/sewer reading and payment through the Boston Water and Sewer Commission before closing, because unpaid balances can become a lien.
• Smoke and CO detector inspection fee. Massachusetts law (M.G.L. c. 148, §26F and §26F½) requires sellers to obtain a compliance certificate from the local fire department before selling a one- or two-family home. The Department of Fire Services oversees this requirement; the seller typically schedules and pays for it.
• 6(d) certificate for condos. If you’re selling a condo in Boston, Somerville, Cambridge, or anywhere else in Greater Boston, you need a certificate under M.G.L. c. 183A, §6(d) from your condo association confirming all common charges are current. The association typically charges a processing fee; who pays it is often specified in the condo documents or negotiated in the P&S.
• Title 5 septic inspection for properties in outer suburbs served by on-site septic systems. Massachusetts DEP Title 5 regulations require an inspection before most sales. By local custom, sellers typically order and pay for this, though it’s negotiable.

Many of these allocations are customary, not legally mandated. The Massachusetts Real Estate Bar Association is clear that parties can negotiate different apportionments of charges in the purchase and sale agreement, except for taxes and fees the law imposes on a specific party. For a full walkthrough of what happens between accepted offer and closing, see my post on what happens after you accept an offer in Massachusetts.

Massachusetts Disclosure Rules Sellers Need to Know

One thing that surprises a lot of sellers: Massachusetts follows the caveat emptor (buyer-beware) doctrine for residential real estate. There is no general mandatory seller disclosure form required by statute for one-to-four family resales. The Massachusetts Board of Registration of Real Estate Brokers and Salespersons training materials confirm this.

That doesn’t mean you can stay silent about known problems. Sellers and their agents cannot misrepresent or actively conceal material defects. Massachusetts General Laws c. 93A, the consumer protection statute, applies to fraud, misrepresentation, and unfair or deceptive practices. In practice, many Greater Boston brokerages use voluntary property condition disclosure forms to reduce liability risk, especially with older multi-family housing stock.

There are also specific mandatory disclosures that do apply:

• Lead paint (pre-1978 homes): If your home was built before 1978, you must provide buyers with the Massachusetts lead paint notification and the EPA/HUD pamphlet before they sign the purchase and sale agreement. This is a hard requirement, not optional. Failing to comply exposes both sellers and agents to fines and liability. I see this come up constantly with Boston triple-deckers and older Cambridge and Somerville housing stock.
• Title 5 septic inspection: Required before most sales of properties on private septic. The Massachusetts DEP oversees this; a failed inspection typically triggers negotiation over repairs, escrow, or price.
• Smoke and CO detector certificate: Required by M.G.L. c. 148 before the sale of a one- or two-family home. The local fire department issues the certificate after inspection.
• 6(d) certificate for condos: Required under M.G.L. c. 183A, §6(d) for any condo sale. The association must certify that all common charges are paid current.

If you’re selling a multi-family in Roxbury, Dorchester, Mattapan, or Jamaica Plain, where pre-1978 housing is the norm, lead paint compliance isn’t a maybe. It’s a required step before you can legally close. My post on selling a two- or three-family home in Boston covers the disclosure and compliance steps specific to that property type.

Frequently Asked Questions

How does the NAR commission settlement change who pays the buyer’s agent in Boston now?

Since August 2024, sellers are no longer required to offer buyer-broker compensation, and such offers can no longer be published on MLS PIN. Sellers can choose to pay the buyer’s broker (negotiated in the listing agreement), let the buyer pay their own agent directly, or offer a seller concession the buyer applies toward their broker’s fee. None of these structures is automatic; it’s a negotiated decision you make with your listing agent before you go to market.

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. Post-settlement, the buyer signs a written agreement with their broker that spells out compensation before they tour homes. You can structure your listing so the buyer handles their own broker’s fee, offer a concession toward buyer costs, or negotiate a seller-paid amount in your listing agreement. Your listing agent can walk you through what’s working in Somerville’s current market so you make a competitive, informed choice.

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, imposed on the seller by statute), your attorney’s fees, recording fees at the Registry of Deeds, the smoke and CO detector inspection fee, a municipal lien certificate, and any utility payoffs required before closing. Condo sellers also need a 6(d) certificate from their association. Most of these allocations are customary rather than legally mandated, so some can be negotiated in the purchase and sale agreement.

What is the Massachusetts deed excise tax, and why is the seller usually the one paying it at closing?

The Massachusetts deed excise tax is a state tax on the transfer of real estate, set at $4.56 per $1,000 of consideration in most Greater Boston counties. The Department of Revenue imposes it on the grantor (the seller), so it’s not negotiable as to who legally owes it. The closing attorney computes it from the final sale price and collects it at closing before recording the deed.

Do I have to fill out a seller disclosure form to sell my house in Boston, or is it really buyer beware?

Massachusetts follows caveat emptor; there’s no general mandatory seller disclosure form for one-to-four family resales. That said, you cannot misrepresent or conceal known material defects; Massachusetts General Laws c. 93A applies to fraud and deceptive practices. Specific disclosures are required for pre-1978 homes (lead paint notification), properties with septic systems (Title 5 inspection), and condos (6(d) certificate). Many Greater Boston brokerages also use voluntary disclosure forms to reduce liability exposure on older housing stock.

Does the NAR settlement mean commissions are lower now in Greater Boston, or just that they’re negotiated differently?

Primarily the latter. The settlement changed how and where compensation is disclosed; offers can no longer appear on MLS PIN, but it doesn’t cap or set rates. Commissions remain fully negotiable between sellers and their listing brokerage, as they always have been under Massachusetts licensing law and NAR’s Code of Ethics. Whether market conditions in Greater Boston push compensation levels in any direction depends on inventory, buyer demand, and what you negotiate, not on the settlement itself.

Understanding commission negotiability and Massachusetts closing costs isn’t just academic; it directly affects what you walk away with. The right structure for your listing depends on your property, your neighborhood, and what buyers are doing in this market right now. That’s exactly the kind of analysis I work through with every seller before we go to market.

Ready to talk through your specific situation? Let’s connect, I’ll give you a straight answer, not a pitch.

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. He personally leads every transaction from the first conversation through closing, no handoffs, no junior agents.

Juan Real Estate at RE/MAX Real Estate Center · (617) 721-0961

Equal Housing Opportunity. Juan Murray is licensed as a Broker in the Commonwealth of 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 attorney, tax advisor, lender, or closing attorney before proceeding.