When you list your home with a real estate agent, one of the most important (yet often overlooked) documents you’ll sign is the listing agreement. Hidden within that agreement is a small checkbox that can have a big impact on your bottom line, especially if an unrepresented buyer makes an offer on your home.
Even though a major 2024 ruling was supposed to protect home sellers from surprise and unfair buyer agent commissions, the reality is that many listing agents are still enforcing the status quo established over decades in the industry. Instead of informing sellers about their options, they often gloss over critical commission clauses. Or worse, mislead sellers into thinking there’s no alternative. That’s why it’s more important than ever to read your listing agreement carefully. Don’t assume your agent has your financial best interests at heart. The fine print matters, and overlooking it could mean handing over thousands of dollars you didn’t need to spend.
Let’s break it down.
The Hidden Commission Clause You Should Watch For
Most listing agreements let your agent decide what happens if the buyer doesn’t have an agent of their own. And guess what many agents do? They check the box that says they get to keep the full commission. That means if your home is listed with a 6% commission (split 3% to the buyer’s agent and 3% to yours), and the buyer comes without an agent, your listing agent gets all 6%. Even if they don't represent that buyer or do any additional work.
Sounds like a sweet deal for them. But for you? Not so much. There are two big reasons why you shouldn’t automatically hand over that extra commission:
Dual agency is a major conflict of interest.
If your listing agent tries to step in and “represent” the buyer too, they’ll inevitably end up juggling competing loyalties. While some states like Florida technically ban dual agency and instead have agents act as 'transaction brokers,' it’s extremely unlikely you can rely on your agent not to slip up. If they’re involved with both sides, they might accidentally say something to the buyer they shouldn’t. Their job is supposed to be getting you the best price and terms, but they can’t do that effectively while also trying to help the buyer. It’s a lose-lose for both sides, and the only winner is the agent collecting double commission.That extra commission could be used to close the deal.
When a buyer comes without an agent, you suddenly have more flexibility and power in the negotiation. That missing buyer’s agent commission is essentially extra money on the table, and it opens up new strategic options. You could:Offer the buyer a credit toward closing costs or repairs
Lower the sales price slightly and still net more
Keep the commission difference yourself
The point is: you should decide how that extra money is used, not your agent. And you shouldn't be held to paying the buyer's agent commission to your agent just because you didn't understand what you were signing.
The Hidden Commission Clause You Should Watch For
Most listing agreements let your agent decide what happens if the buyer doesn’t have an agent of their own. And guess what many agents do? They check the box that says they get to keep the full commission. That means if your home is listed with a 6% commission (split 3% to the buyer’s agent and 3% to yours), and the buyer comes without an agent, your listing agent gets all 6%. Even if they don't represent that buyer or do any additional work.
Sounds like a sweet deal for them. But for you? Not so much. There are two big reasons why you shouldn’t automatically hand over that extra commission:
Dual agency is a major conflict of interest.
If your listing agent tries to step in and “represent” the buyer too, they’ll inevitably end up juggling competing loyalties. While some states like Florida technically ban dual agency and instead have agents act as 'transaction brokers,' it’s extremely unlikely you can rely on your agent not to slip up. If they’re involved with both sides, they might accidentally say something to the buyer they shouldn’t. Their job is supposed to be getting you the best price and terms, but they can’t do that effectively while also trying to help the buyer. It’s a lose-lose for both sides, and the only winner is the agent collecting double commission.That extra commission could be used to close the deal.
When a buyer comes without an agent, you suddenly have more flexibility and power in the negotiation. That missing buyer’s agent commission is essentially extra money on the table, and it opens up new strategic options. You could:Offer the buyer a credit toward closing costs or repairs
Lower the sales price slightly and still net more
Keep the commission difference yourself
The point is: you should decide how that extra money is used, not your agent. And you shouldn't be held to paying the buyer's agent commission to your agent just because you didn't understand what you were signing.
The Hidden Commission Clause You Should Watch For
Most listing agreements let your agent decide what happens if the buyer doesn’t have an agent of their own. And guess what many agents do? They check the box that says they get to keep the full commission. That means if your home is listed with a 6% commission (split 3% to the buyer’s agent and 3% to yours), and the buyer comes without an agent, your listing agent gets all 6%. Even if they don't represent that buyer or do any additional work.
Sounds like a sweet deal for them. But for you? Not so much. There are two big reasons why you shouldn’t automatically hand over that extra commission:
Dual agency is a major conflict of interest.
If your listing agent tries to step in and “represent” the buyer too, they’ll inevitably end up juggling competing loyalties. While some states like Florida technically ban dual agency and instead have agents act as 'transaction brokers,' it’s extremely unlikely you can rely on your agent not to slip up. If they’re involved with both sides, they might accidentally say something to the buyer they shouldn’t. Their job is supposed to be getting you the best price and terms, but they can’t do that effectively while also trying to help the buyer. It’s a lose-lose for both sides, and the only winner is the agent collecting double commission.That extra commission could be used to close the deal.
When a buyer comes without an agent, you suddenly have more flexibility and power in the negotiation. That missing buyer’s agent commission is essentially extra money on the table, and it opens up new strategic options. You could:Offer the buyer a credit toward closing costs or repairs
Lower the sales price slightly and still net more
Keep the commission difference yourself
The point is: you should decide how that extra money is used, not your agent. And you shouldn't be held to paying the buyer's agent commission to your agent just because you didn't understand what you were signing.
Red Flags to Watch for in Your Listing Agreement
Before you sign anything, look closely for these phrases or sections in your listing agreement. They might seem standard, but they can quietly cost you a lot of money:
“Broker retains full commission if buyer is unrepresented”
“Broker may act as dual agent or transaction broker”
“Commission not subject to renegotiation”
"Compensation to buyer's broker"
"Compensation for unrepresented buyer"
If you see anything like this, ask questions and get clarification in writing. Don’t let vague language work against you. Every state's contract is different, and the language used can be intentionally confusing, so ask your agent exactly which section covers buyer broker compensation and what happens if the buyer is unrepresented. Get clear answers, don’t rely on assumptions.
For example, in the standard Florida listing agreement most agents use, you would need to look at both the "Compensation" and "Compensation to Buyers Brokers" sections. In the Texas listing agreement, look for the section titled "Broker's Fee (without compensation for other broker)." And in the Northern Virginia contract, the section you want to pay attention to is currently called "Additional Listing Broker Compensation for Unrepresented Buyer."
Myth-Busting: Your Agent Doesn’t Have to Represent Both Sides
There's a common misconception that a buyer has to have an agent in order to buy a home. That's just not true. Some sellers also believe that if the buyer is unrepresented, their agent should or has to automatically step in to work with both sides.
MYTH: If a buyer doesn’t have an agent, they have to find one or your listing agent has to step in and represent them.
FACT: You’re never required to let your listing agent represent the buyer as well. In fact, doing so can create serious conflicts of interest. Your agent’s job is to protect your interests, and that becomes nearly impossible when they’re trying to please both parties.
When sellers have a better understanding about what is and isn't allowed or required, they can be better prepared to advocate for themselves and make decisions that are best for them.
Commission Questions to Ask Before You Sign A Listing Agreement
Before you commit to an agent or a contract, arm yourself with the right questions. Make sure you get clear answers and you feel good about how your agent handled responding to them. If something seems off, you can always interview another agent. Here are some things to check on:
What happens to the commission if the buyer doesn’t have an agent?
Will you ever act as a dual agent or transaction broker?
Can we write in a clause that protects me from paying more than necessary?
Are you willing to consult me before making any commission-related decisions?
Armed with these questions, you can have a transparent conversation with your agent to make sure you understand whether your best interests are being taken into account.
What To Confirm in Your Listing Agreement
When you’re reviewing your listing agreement, make sure you retain the right to negotiate if the buyer doesn’t have an agent. Don’t agree to automatically give your listing agent the full commission. You can:
Specify that the total commission will be reduced in unrepresented scenarios
Require your agent to consult you before making commission decisions
Clearly prohibit them from acting as a dual agent or transaction broker
Whatever you choose to do, make sure it's reflected both in the selections you check within the contract and the additional terms section, if there is one. That way you and your agent are clear about your preferences. This is your house, your money, and your deal. Your agent should work for you, not for themselves.
Red Flags to Watch for in Your Listing Agreement
Before you sign anything, look closely for these phrases or sections in your listing agreement. They might seem standard, but they can quietly cost you a lot of money:
“Broker retains full commission if buyer is unrepresented”
“Broker may act as dual agent or transaction broker”
“Commission not subject to renegotiation”
"Compensation to buyer's broker"
"Compensation for unrepresented buyer"
If you see anything like this, ask questions and get clarification in writing. Don’t let vague language work against you. Every state's contract is different, and the language used can be intentionally confusing, so ask your agent exactly which section covers buyer broker compensation and what happens if the buyer is unrepresented. Get clear answers, don’t rely on assumptions.
For example, in the standard Florida listing agreement most agents use, you would need to look at both the "Compensation" and "Compensation to Buyers Brokers" sections. In the Texas listing agreement, look for the section titled "Broker's Fee (without compensation for other broker)." And in the Northern Virginia contract, the section you want to pay attention to is currently called "Additional Listing Broker Compensation for Unrepresented Buyer."
Myth-Busting: Your Agent Doesn’t Have to Represent Both Sides
There's a common misconception that a buyer has to have an agent in order to buy a home. That's just not true. Some sellers also believe that if the buyer is unrepresented, their agent should or has to automatically step in to work with both sides.
MYTH: If a buyer doesn’t have an agent, they have to find one or your listing agent has to step in and represent them.
FACT: You’re never required to let your listing agent represent the buyer as well. In fact, doing so can create serious conflicts of interest. Your agent’s job is to protect your interests, and that becomes nearly impossible when they’re trying to please both parties.
When sellers have a better understanding about what is and isn't allowed or required, they can be better prepared to advocate for themselves and make decisions that are best for them.
Commission Questions to Ask Before You Sign A Listing Agreement
Before you commit to an agent or a contract, arm yourself with the right questions. Make sure you get clear answers and you feel good about how your agent handled responding to them. If something seems off, you can always interview another agent. Here are some things to check on:
What happens to the commission if the buyer doesn’t have an agent?
Will you ever act as a dual agent or transaction broker?
Can we write in a clause that protects me from paying more than necessary?
Are you willing to consult me before making any commission-related decisions?
Armed with these questions, you can have a transparent conversation with your agent to make sure you understand whether your best interests are being taken into account.
What To Confirm in Your Listing Agreement
When you’re reviewing your listing agreement, make sure you retain the right to negotiate if the buyer doesn’t have an agent. Don’t agree to automatically give your listing agent the full commission. You can:
Specify that the total commission will be reduced in unrepresented scenarios
Require your agent to consult you before making commission decisions
Clearly prohibit them from acting as a dual agent or transaction broker
Whatever you choose to do, make sure it's reflected both in the selections you check within the contract and the additional terms section, if there is one. That way you and your agent are clear about your preferences. This is your house, your money, and your deal. Your agent should work for you, not for themselves.
Red Flags to Watch for in Your Listing Agreement
Before you sign anything, look closely for these phrases or sections in your listing agreement. They might seem standard, but they can quietly cost you a lot of money:
“Broker retains full commission if buyer is unrepresented”
“Broker may act as dual agent or transaction broker”
“Commission not subject to renegotiation”
"Compensation to buyer's broker"
"Compensation for unrepresented buyer"
If you see anything like this, ask questions and get clarification in writing. Don’t let vague language work against you. Every state's contract is different, and the language used can be intentionally confusing, so ask your agent exactly which section covers buyer broker compensation and what happens if the buyer is unrepresented. Get clear answers, don’t rely on assumptions.
For example, in the standard Florida listing agreement most agents use, you would need to look at both the "Compensation" and "Compensation to Buyers Brokers" sections. In the Texas listing agreement, look for the section titled "Broker's Fee (without compensation for other broker)." And in the Northern Virginia contract, the section you want to pay attention to is currently called "Additional Listing Broker Compensation for Unrepresented Buyer."
Myth-Busting: Your Agent Doesn’t Have to Represent Both Sides
There's a common misconception that a buyer has to have an agent in order to buy a home. That's just not true. Some sellers also believe that if the buyer is unrepresented, their agent should or has to automatically step in to work with both sides.
MYTH: If a buyer doesn’t have an agent, they have to find one or your listing agent has to step in and represent them.
FACT: You’re never required to let your listing agent represent the buyer as well. In fact, doing so can create serious conflicts of interest. Your agent’s job is to protect your interests, and that becomes nearly impossible when they’re trying to please both parties.
When sellers have a better understanding about what is and isn't allowed or required, they can be better prepared to advocate for themselves and make decisions that are best for them.
Commission Questions to Ask Before You Sign A Listing Agreement
Before you commit to an agent or a contract, arm yourself with the right questions. Make sure you get clear answers and you feel good about how your agent handled responding to them. If something seems off, you can always interview another agent. Here are some things to check on:
What happens to the commission if the buyer doesn’t have an agent?
Will you ever act as a dual agent or transaction broker?
Can we write in a clause that protects me from paying more than necessary?
Are you willing to consult me before making any commission-related decisions?
Armed with these questions, you can have a transparent conversation with your agent to make sure you understand whether your best interests are being taken into account.
What To Confirm in Your Listing Agreement
When you’re reviewing your listing agreement, make sure you retain the right to negotiate if the buyer doesn’t have an agent. Don’t agree to automatically give your listing agent the full commission. You can:
Specify that the total commission will be reduced in unrepresented scenarios
Require your agent to consult you before making commission decisions
Clearly prohibit them from acting as a dual agent or transaction broker
Whatever you choose to do, make sure it's reflected both in the selections you check within the contract and the additional terms section, if there is one. That way you and your agent are clear about your preferences. This is your house, your money, and your deal. Your agent should work for you, not for themselves.
Homa Helps You Catch What Others Want You to Miss
Traditional listing agents have been using unclear commission tactics for years to make more money by doing less work. At Homa, we believe in helping both buyers and sellers understand exactly what they’re signing, and where the money is going. While Homa is primarily designed for unrepresented home buyers, we still think it's important to help sellers be educated about the choices they can make when they sell their home.
If you're planning to list your home soon, keep your eyes open. A simple checkbox in a contract could cost you thousands of dollars. But being prepared could help you save money and even get your home under contract faster if it gives you more negotiating options.
Homa Helps You Catch What Others Want You to Miss
Traditional listing agents have been using unclear commission tactics for years to make more money by doing less work. At Homa, we believe in helping both buyers and sellers understand exactly what they’re signing, and where the money is going. While Homa is primarily designed for unrepresented home buyers, we still think it's important to help sellers be educated about the choices they can make when they sell their home.
If you're planning to list your home soon, keep your eyes open. A simple checkbox in a contract could cost you thousands of dollars. But being prepared could help you save money and even get your home under contract faster if it gives you more negotiating options.
Homa Helps You Catch What Others Want You to Miss
Traditional listing agents have been using unclear commission tactics for years to make more money by doing less work. At Homa, we believe in helping both buyers and sellers understand exactly what they’re signing, and where the money is going. While Homa is primarily designed for unrepresented home buyers, we still think it's important to help sellers be educated about the choices they can make when they sell their home.
If you're planning to list your home soon, keep your eyes open. A simple checkbox in a contract could cost you thousands of dollars. But being prepared could help you save money and even get your home under contract faster if it gives you more negotiating options.
