One of the most common questions I hear from buyers and sellers in Brenham and Washington County is about who pays the real estate agent. It used to be a straightforward answer. But after the National Association of REALTORS (NAR) settlement and new Texas laws that took effect in 2026, the rules around buyer-agent compensation and seller concessions have changed significantly.
My name is De Wayne Mortensen II, and I have been helping people buy and sell property in Texas and California for over 20 years. I have seen commission structures shift before, and I want to explain clearly what has changed, what has stayed the same, and what it means for you whether you are buying or selling a home in Brenham.
What Changed with the NAR Settlement?
Starting in August 2024, the NAR settlement introduced several changes to how real estate commissions work across the country. The most significant change was that offers of buyer-agent compensation could no longer be advertised on the Multiple Listing Service (MLS). Before the settlement, a seller could list a home and include an offer to pay the buyer's agent a specific percentage, and that offer was visible to every agent in the MLS system. After the settlement, that information could no longer appear on the MLS.
Then on January 1, 2026, Texas went a step further with new legislation requiring buyers to sign a written representation agreement before touring any home. This form, known as the Texas TREC Buyer Representation Agreement (TXR-1501), states exactly how the buyer's agent will be compensated and who is responsible for that payment. This is now a legal requirement in Texas, not just a recommendation.
These two changes together have reshaped how commissions are negotiated and disclosed for every real estate transaction in Brenham, Washington County, and across Texas.
How Buyer-Agent Compensation Works Now
Before you tour a home, you sign a buyer representation agreement. This is a written contract between you (the buyer) and your agent. It specifies the agent's compensation, how it will be paid, and how long the agreement lasts. This agreement protects both you and the agent by setting clear expectations from the start.
Compensation is fully negotiable. There is no standard rate. The fee you agree to with your buyer's agent is whatever you both negotiate. It could be a flat fee, a percentage of the purchase price, or an hourly rate. Most agents in the Brenham area still work on a percentage basis, but the exact number is now negotiated upfront rather than assumed.
Sellers can still pay the buyer's agent, but it is negotiated separately. A seller can agree to pay a portion of the buyer's agent compensation as a concession. This happens through direct negotiation between the listing agent and buyer's agent, not through a public MLS field. Many sellers in Washington County still choose to offer buyer-agent compensation because it makes their home more accessible to buyers who may not have cash available to pay their agent directly.
If the seller does not pay, the buyer may be responsible. If the seller offers no compensation to the buyer's agent, the buyer is responsible for paying their agent out of pocket at closing. This is one of the most important changes for buyers to understand. It means you need to know before you start looking at homes how your agent will be paid and what your financial responsibility could be.
What Are Seller Concessions and How Do They Work?
A seller concession is when the seller agrees to pay for certain costs on behalf of the buyer. These are common in Texas real estate and can take several forms.
Closing cost assistance. The seller agrees to contribute a set amount toward the buyer's closing costs, such as loan origination fees, title insurance, escrow fees, or prepaid property taxes. This is one of the most common concessions and helps buyers reduce their out-of-pocket expenses at closing.
Buyer-agent compensation. As mentioned above, the seller can agree to pay all or part of the buyer's agent commission as a concession. This is now handled outside the MLS through direct negotiation between the agents.
Interest rate buydowns. The seller can contribute money to lower the buyer's interest rate temporarily or permanently. A temporary buydown might reduce the rate for the first one to three years, while a permanent buydown reduces it for the life of the loan. This has become more common as interest rates have stayed higher than the historic lows of recent years.
Home warranty or repair credits. A seller may offer to purchase a home warranty policy for the buyer, or provide a credit toward necessary repairs identified during the inspection period.
How This Affects Buyers in Brenham and Washington County
For buyers, the most important takeaway is this: you now have more transparency about what your agent is being paid and who is paying it. That is a good thing. But it also means you need to ask the right questions early in the process.
Before you start touring homes, ask your agent: What is your compensation? How is it calculated? Will we ask the seller to pay it, or will I be responsible for it? These are straightforward questions, and a good agent will answer them without hesitation.
In the current Brenham market, where homes are spending an average of 111 days on the market, many sellers are willing to offer concessions to attract buyers. That includes contributing toward buyer-agent compensation in many cases. But you cannot assume the seller will pay it, and you should not plan your budget around that assumption without confirming it.
If you are using an FHA, VA, or USDA loan, there are specific limits on how much the seller can contribute in concessions. Conventional loans typically allow up to 3% to 9% depending on your down payment. Your lender and I can help you understand exactly where those limits fall for your situation.
How This Affects Sellers in Brenham and Washington County
For sellers, the key question is whether and how much to offer in concessions including buyer-agent compensation. There is no single right answer. It depends on your market, your property, and your goals.
Here is what I recommend to sellers in Washington County. In a market where buyers have options, offering some level of buyer-agent compensation or closing cost assistance can make your home more attractive. It removes a potential financial barrier for buyers and signals that you are serious about selling.
That said, you are not obligated to offer concessions. If your home is priced competitively, in good condition, and in a desirable location, buyers may be willing to cover their own agent's compensation. The right strategy depends on your specific situation, and I will walk through the options with you when we talk about listing your home.
One thing that has not changed: the listing agreement you sign with me will still clearly state the commission I charge for representing you as the seller. That is between you and me, and it is spelled out in writing before we go to market.
Are Commissions Higher or Lower Now?
This is a question I get often, and the answer depends on the market. Early data suggests that average buyer-agent commissions have decreased slightly in some markets, while remaining stable in others. In Brenham and Washington County, I have not seen dramatic drops. Most agents in this area provide substantial value through market knowledge, negotiation skills, contract expertise, and local connections. Buyers and sellers who understand that value continue to agree to fair compensation for the services provided.
What the settlement has done is create more negotiation and more transparency. Both buyers and sellers now have a clearer picture of what they are paying for and why. That is a positive development for everyone involved.
Common Questions About the Changes
Do I have to pay my buyer's agent upfront?
No. You sign the buyer representation agreement before touring homes, but payment typically happens at closing. You do not write a check at the time you sign the agreement. The agreement spells out the terms, and the payment is settled when the transaction closes.
Can I still get a buyer's agent for free?
Whether the buyer pays directly or the seller covers the cost is a matter of negotiation. If the seller agrees to pay the buyer's agent compensation as part of the offer negotiation, you as the buyer may not need to bring additional cash to cover that cost. But it is not automatic anymore. It is something we discuss and negotiate as part of your offer strategy.
Will the seller reduce their price if they are not paying buyer-agent comp?
Possibly, but not necessarily. Some sellers may be willing to lower the price if they are not contributing to buyer-agent compensation. Others will price the same regardless. This is one of the factors we consider when developing your offer strategy.
Does this affect VA or FHA loans?
It can. VA and FHA loans have specific rules about allowable seller concessions. VA loans limit concessions to 4% of the loan amount. FHA loans allow up to 6%. If the seller is offering buyer-agent compensation as a concession, it counts toward these limits along with other concessions like closing cost assistance. I work with local lenders who understand these programs and can help structure offers that work within the guidelines.
The Bottom Line
The NAR settlement and the new Texas laws have brought more transparency to real estate commissions, but they have not fundamentally changed the value that a good agent provides. Whether you are buying or selling in Brenham or Washington County, the most important thing is to work with someone who explains the process clearly, represents your interests faithfully, and helps you make informed decisions.
If you have questions about how these changes affect your specific situation, I would be glad to talk through them. There is usually more than one way to solve a real estate problem, and I will help you find the approach that works best for you.
